Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
Superhero to capture the millennial investor market
Move over Robinhood, Superhero is here. Pardon the pun.
While Robinhood is still to launch in Australia, a new online broker called Superhero, has launched its platform offering $5 flat trades for ASX stocks and ETFs with a $100 minimum investment. Ever since Robinhood transformed the online broking space by offering $0 commission trades, the space is being flooded with fintech startups trying to disrupt the space using a niche or different value add. As a result, it is becoming harder to compete. But Superhero believe their platform has this value add.
Whilst it may not seem overly important, the $100 minimum makes a huge difference to newbie millennial traders who may not have enough money to make an entry into the stock market because all Australian brokers charge a minimum $500. Together with $5 per trade and the platform becomes not only the cheapest but directly appeals to the younger demographic. There’s also no inactivity or monthly fee for the basic account.
As mentioned above, the flat $5 fee makes it one of the cheapest ASX share trading platforms on the market, however eToro and Robinhood both charge no fee. But we think, for the small price, the difference is huge. Superhero’s app is clean in design and easy to use. It’s purpose built for the millennial generation who don’t need heavy detail and intricate designs. With Superhero sign up is quick, and relatively straight forward. And once in, the app really speaks for itself. It stands out from other more complicated and clunky apps.
Superhero’s unveiling follows an $8m capital raising backed by Afterpay co-founder Nick Molnar, and Zip Co’s (ASX:Z1P) co-founder Larry Diamond. Both BNPL platforms share the same target demographic as Superhero. So it makes total sense for the start-up to have them both on board as investors that may prove highly useful in the long run.
The start-up intends to disrupt the online broking industry with its offering but attracting the younger generation from its low barriers to entry. But we think the attractiveness of this app, is its design. It is an app that has been purpose built just for millennials, which is where Robinhood fails. Once it gains traction, the app will go up against likes of SelfWealth charging $9.50 per trade, and the top 4 online broking platforms such as CommSec, NabTrade, Westpac and ANZ online trading who charge around the $19.95 mark.
Whilst the pandemic has given Robinhood in the US a springboard to capture the younger generation, that opportunity is long gone in Australia with nifty Start-ups like Superhero and eToro setting up shop and launching at an opportune time. According to a Calastone study, “Australian millennials among the most proactive investors globally, with 81% having invested or considering investing since the spread of COVID.”
If Australian millennials to trade and were twice as active than Australian generation X investors, Superhero is in the right space to capture this upside potential.
