Online broker Stake is now offering $0 brokerage on Australian stocks for members who refer three friends.
The ‘three to free’ referral method allows customers to refer friends in exchange for discounted brokerage with the opportunity to continue free brokerage indefinitely.
For each person a customer refers, their brokerage drops by $1 for one year.
With Stake's current brokerage fee being $3, three referrals will reduce the brokerage fee to $0.
Referrals beyond the third are banked and kick-in once another has expired - those referred must sign up to Stake and fund their account for the referral to be valid.
Stake CEO and Founder Matt Leibowitz said Stake has always believed Aussies should be able to access low brokerage fees.
"With Stake, those investing on the ASX have everything they need - access to more than 2000 companies and exchange-traded funds (ETFs), CHESS-sponsorship, instant funding into an AUD wallet, and a dedicated dashboard for their Australian holdings," he said.
"Now they can get all of that with $0 brokerage for as long as they want, given they’ve got the hustle.
"The more players operating, the more pressure there is to deliver what’s best for consumers while ensuring the long-term viability of their platform. That’s what we’ve done, and we’ve done it in a sustainable way.
"We’re able to remain profitable without charging the fees that other higher frequency brokerage houses do."
The new, 'three to free' promotion is in addition to Stake’s mainstay $0 brokerage on US stocks and ETFs which can be traded on both its app and website.
"It’s been four years since we pioneered $0 commission for US shares and during that time have maintained the core belief that there's no reason Australians should be stung with high brokerage fees, regardless of the market they’re trading on," Mr Leibowitz said.
Since its launch in 2017, Stake has amassed nearly 500,000 customers, and more than US$1.5 billion in funds under management across Australia, New Zealand, the UK, and Brazil.
Image by Edson Saldana via Unsplash