New York-based online broker-dealer, TradeZero said its Canadian subsidiary was admitted as a dealer-member of the Investment Industry Regulatory Organization of Canada.
The approval allows TradeZero 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.
TradeZero Securities Canada also allows its ‘active traders’ to select the specific destination where their orders are routed for execution. Those who maintain a minimum account balance of $30,000 can take advantage of these features to increase both the speed and likelihood of order execution, while simultaneously lowering their trading costs by taking advantage of rebates.
TradeZero also said it would offer clients easier access to hard-to-borrow shares though a locate feature built into its platforms. This patent-pending feature enables TradeZero investors to sell their shares to other traders on the platform, which resolves one of the major disadvantages of shorting stocks that appear on a hard-to-borrow list. Most brokers require traders to pay high fees or enroll in special programs to have access to such stocks, given the relatively few borrowable shares coupled with the huge demand from short sellers.
TradeZero had begun as an international company back in 2015, and investor demand led to the formation of its US arm, TradeZero America, which provides commission-free stock and options trading across all US states.
“We are very excited to introduce the TradeZero platform and offer our exceptional trading experience to retail traders in Canada. Launching in Canada marks a major milestone in our ongoing growth and an additional step in our wider international expansion plans,” said Daniel Pipitone, CEO and Co-Founder of TradeZero.
TradeZero is heading for a SPAC merger
“Canada is a fantastic opportunity for TradeZero to continue its geographic expansion and offer its leading services to a market ripe for continued disruption. We look forward to supporting TradeZero’s efforts to scale into additional geographies as it increases its international presence,” added Carter Glatt, CEO and Founder of Dune.
Earlier in December, TradeZero secured the services of Ila Jehl III and Colette Rex as the CEO and COO, respectively, of its soon-to-be-launched securities clearing business.
The new appointments come hot on the heels of TradeZero’s plans to go public through a merger with a blank-check firm in a deal that values the combined entity at $556 million.
The new company will be called TradeZero Global Inc. upon the closing of the business combination with Dune Acquisition Corp (NASDAQ: DUNE) and is expected to be listed on the New York Stock Exchange under a new ticker symbol, “TRAD”.
This was the latest example of online trading brokers catching the boom of special purpose acquisition companies (SPACs). The most notable example was eToro and US SPAC Fintech Acquisition in a deal that values the social investment platform at a massive $10.4 billion.