Year of the Tiger Broker: Now Australians can trade stocks and options 24/7, cheaper, faster and more accurately
Tiger Trade Australia, Australia’s newest mobile stock trading platform, is about to go live – and it’s well positioned to undercut rivals in price and technology capabilities.
Nasdaq-listed Tiger Brokers Group officially enters the Australian retail equity market this week with the launch of its proprietary Tiger Trade trading app, offering zero brokerage on US and ASX stocks for 3 months.*
Welcome gifts such as free Apple shares and stock vouchers are also used to entice information users in an increasingly crowded marketplace.**
Tiger Brokers Australia is led by UP Fintech, headquartered in Singapore, NASDAQ-listed Tiger Brokers (TIGR), with a market capitalization of US$750 million and approximately 9 million users worldwide.
Tiger Australia will offer Australian investors the ability to trade on the ASX, Wall Street, US, Hong Kong stocks and ETFs, as well as US options at Tiger Trade.
By opening up access to a wider global market with more advanced tools and order types, the tech-driven retail broker is set to grow rapidly in Australia.
Chief Strategy Officer Michael McCarthy said Stockhead Tiger Brokers was looking to replicate its successful launch in Singapore two years ago.
“At one point we were the fastest growing brokerage platform in Singapore and the adoption there suggests that the kind of features we are bringing to Australia are likely to be well received,” said he declared.
Advantage in technology
McCarthy said Tiger Brokers technology provides an undeniable competitive advantage.
“Tiger Technology is where we have real strength that provides a stable and reliable environment for trading, but a huge upside for active investors,” he said.
Many online brokers in Australia are still using technology developed up to two decades ago and the reason for this is that they are large institutions tied to their legacy IT systems.
“We have a very strong team of developers and our technology is our secret weapon – so just like we look at Web3 – we look at Fintech3.”
Latest technology renewed, refreshed fortnightly
“But we’ve learned that you need to constantly update your technology and our app is updated every two weeks to cater to our customers and what they are looking to do with their portfolios and in the market.”
He said their technology philosophy revolves around meeting customers’ needs and what they want to do with their wallets and in their market.
“It’s not just about fixing bugs, which of course is a big part of reliability and stability,” he said.
Trade US stocks throughout the US trading day
Tiger Trade offers extended trading hours, which include pre- and after-hours sessions for US stocks, helping investors seize every opportunity.
“Right now, we’re going through quarterly reporting season in the US and often see companies posting after-market reports and their stock prices can move significantly at this post-market stage,” McCarthy said.
“Many local brokers cannot offer participation in this aftermarket trade, so this is a practical example of our technology advantage.”
Another advantage of Tiger Trade is being able to trade the US options market in real time, while providing real-time data so investors can make informed decisions.
Analysis and education
McCarthy said Tiger Brokers is focused on educating and informing clients about their investment journey.
Fundamental analysis of individual companies, including the company’s cash position, operating capacity and balance sheet strength, is intended to help investors better understand the companies they are considering buying.
Financial information and ratios, along with Level 2 market data, show order depth, including quantities at each individual bid and ask to help investors stay on top of the market.
And if investors aren’t ready to take the plunge, McCarthy said Tiger Trade has demo accounts, where investors can practice their investing skills and test out their strategies.
“We consider educational material to be just as important as the technical and fundamental analysis we provide,” he said.
“That ability to scale as an investor and be more successful, we think is so important, especially for newcomers to the market.”
Share your investor experience
Tiger Trade also offers a community forum, which has been very popular in international markets for investors to share experience, discuss markets and trades.
“Because we have a great mix of investors on our platform, from those who just started trading in the last 12 months to those who trade with institutions like hedge funds, conversations within our community area can be quite sophisticated and a good source of market information,” he said.
“Forum engagement is also a product of our technology, with almost every brokerage platform having a comment section, but active market discussions are much less common.
“Allowing users to rate, recommend, or share an idea seems like a small feature, but it’s the difference between a useful community forum and one that may not be.”
Not affected by competition
McCarthy said he was not concerned about growing competition in Australia’s online brokerage industry and the company was just focusing on its own racing.
“There has been a lot of attention and headlines about new entrants to the Australian market, but a lot of the trading volume is still handled by older brokers like Commsec and CMC Markets,” McCarthy said.
He said that because Australia is a stable trading environment and its economy is globally attractive, Tiger Brokers sees potential for other new entrants to enter the Australian market.
“These are very different offerings in many ways. One of the benefits is that consumers have more choice, but given the advantage of our technology, we believe the answer for many local investors will be Tiger Brokers and Tiger Trade.
Retail Investor Growth
McCarthy said the stock market’s popularity among retail investors continues to grow and the company is focused on opening the market to everyone.
“Whether you’re retired and trading your self-managed super fund holdings or just starting your investment journey, our platform can offer something for investors at all levels,” he said.
McCarthy said there’s no doubt that one of the big equity market trends over the past few decades has been the growing participation of retail investors directly in the market.
“It’s a long-term trend that’s going nowhere and has accelerated in the past two years since the COVID-19 pandemic,” he said.
Tiger Brokers particularly targets young investors, who are beginning their investment journey.
“We have a whole new cohort of young traders between the ages of 18 and 35 who we know we can add real value to – by providing easy access to the markets with the right, incredibly useful tool at Tiger Trade,” said McCarthy.
Learn more about Tiger Brokers here.
* Transfer fees apply, ** Subject to promotion deposit minimums.
This article was developed in conjunction with Tiger Brokers, a Stockhead advertiser at the time of publication.
This article does not constitute advice on financial products. You should consider obtaining independent advice before making any financial decisions.