17. December 2019 | 09:52 CET
Competition for Flatex & Co.: wallstreet:online starts low cost broker
The bank-independent brokers get a new experienced competitor in the market. wallstreet:online AG has announced the foundation of a new discount broker together with its investment company wallstreet:online capital AG. The "Smartbroker" will immediately offer customers the trading of securities at all major stock exchanges at discount conditions. The objective of the w:o Group is to win over 200,000 customers for the Smartbroker over the next four to six years. The leading financial portal in the German-speaking area, wallstreet:online, is thus expanding its business model to include transaction business.
time to read: 1 minutes by Mario Hose
"[...] With FondsDISCOUNT.de, we have been committed to the self-deciding customers for almost 20 years and have been reducing the costs of capital investment in the long term. [...]" Thomas Soltau, CEO, wallstreet:online capital AG
In the future EUR 0,- order fee for most transactions
From the outset, Smartbroker clients can invest in a large investment universe - including equities, bonds, ETFs, funds, physical gold trading, on all major domestic and foreign stock exchanges. The Smartbroker offers all this at discount conditions. For domestic trading, the order fee of EUR 4.- (plus any stock exchange fees) initially applies to all types of securities, regardless of the order volume or the trading exchange. In addition, customers can purchase almost all investment funds permanently via the Smartbroker without an issue surcharge.
The following fee reductions are already planned within the next six months:
- OTC share trading for individual trading venues (EUR 0.- to 1.-)
- Fund trading (EUR 0.00 in KAG direct and exchange trading)
- ETF trading in partnership with leading providers (EUR 0.-)
- Derivatives trading in partnership with established derivatives issuers (EUR 0.00).
Largest publisher-independent media platform
Stefan Zmojda, CEO of wallstreet:online AG: "In the past two years, the wallstreet:online group has developed into the largest publisher-independent communication and media platform for Germany's self-decisive investors through acquisitions. With our portals wallstreet-online.de, ariva.de, börsennews.de and finanznachrichten.de, we now reach over 3.5 million readers per month and generate 177 million page impressions (11/2019). This corresponds to over 70% of the approximately 5 million people in Germany who trade shares, funds, ETFs and derivatives exclusively on the basis of their own decisions. We will integrate the Smartbroker into all platforms and media of our group in the coming years. In addition, we plan to enable our users to trade securities from our financial portals before the end of 2020 through direct access to various online brokers".
Core business of w:o highly profitable
Due to the high reach of the financial portals of the wallstreet:online group as well as the technology and online expertise, the group expects high efficiency in the market launch of the Smartbroker. The initial investment volume of up to EUR 4 million over the next two years, which is to be made available for the Smartbroker's advertising on external platforms, is to be financed from the cash position and the result of the w:o Group's operating business. For the year 2019 a profit before tax (EBT) between EUR 5.7 and 7.0 million is still expected. Smartbroker is expected to be clearly profitable in the third year after launch.