FOREX.com, a trading name of GAIN Capital- FOREX.com Canada Limited, is set to launch its service that enables users in Canada to trade shares CFDs at $0 Commission in July 2022.
Commission-free trading appears to be the trend that isn’t going away, and FOREX.com Securities is the latest company to join the race to the bottom. To stay competitive, the wholly-owned subsidiary of StoneX Group is expanding into the Canadian market by offering over 2,500 new tradeable markets to local investors.
Although FOREX.com is trying to promote a similar concept to commission-free investing app Robinhood, which also has zero brokerage fees, but Bid/ask spread cost will still apply. Often promoted as cheaper and better than trading in futures markets, CFDs on stocks have become one of the popular investment vehicles that offer low-cost diversification and arbitrage options for retail traders. Additionally, it creates the conditions for investors to trade the underlying asset with much better control of their exposure to risk margin.
When it comes to other features, FOREX.com is also rolling out a fractional trading as a way to lower the bar for young investors. The feature allows small-bucks traders to diversify their portfolios by spreading their relatively small capital over a broader range of stocks. The move, geared toward attracting more young clients, eliminates the barriers that many investors face as the brokerage split whole shares intentionally, so they can sell fractional shares.
TradeZero launches ‘free’ stock trading in Canada
Glenn Stevens, CEO of the retail business of StoneX Group Inc., commented on the news, “Our mission at StoneX is to open markets, and this expansion of our FOREX.com offering in the Canadian market is an important part of providing comprehensive access to the retail investor. We also give retail investors the ability to trade the way they want by providing access to fractional shares of indices and commodities and reducing our commissions.”
“Providing a broader product offering with competitive pricing for our Canadian clients is a top priority for us. For 20 years, we’ve been dedicated to bringing major markets to our global clients, and the investment in our Canadian service marks the latest demonstration of this commitment,” added Sixto Alonso, Regional Director of FOREX.com Americas.
The new offering comes shortly after TradeZero said its Canadian subsidiary was admitted as a dealer-member of the Investment Industry Regulatory Organization of Canada. The approval allows the New York-based online broker-dealer to launch its commission-free and subscription-based software for active stock trading in Canada. The broker’s core offering also includes options trading, real-time streaming on web and desktop platforms, pre-and post-market trade, charting and scrolling news feeds.