OpenMarkets is an independently-owned stockbroker specialising in low-cost online trading solutions. It acquired its licence when it purchased Sydney-based firm Cameron Stockbroking in May. It will focus on end-to-end online trading solutions and build its client base through partnerships with third party financial services firms.
OpenMarkets chief executive officer Rick Klink described OpenMarkets as an independent, low-cost brokerage firm.
“While individual and wholesale investors can use the service directly, we also intend to develop and grow the business through an open partnership approach,” said Mr Klink.
“This will see us build relationships and integrate our services with third parties, such as research providers, for the benefit of our mutual clients.”
OpenMarkets chief operating officer, Andrea Marani, said the firm’s focus on execution should appeal to financial service providers wanting to offer their clients an online trading service that does not try to sell financial products that are in direct competition with their services.
General manager of the ASX David Raper said the ASX was pleased to welcome OpenMarkets as a new market participant.
“The market structure and the needs of users have undergone significant change in recent years and ASX is pleased that OpenMarkets has identified the competitive advantage of hosting its market data and trading infrastructure in the ASX Australian Liquidity Centre,” said Mr Raper.
OpenMarkets is currently live with a select group of clients and will officially launch its retail services soon. Michael Cox, chairman of the National Stock Exchange (NSX), said online trading will provide investors and traders with the service they’ve been requesting.
“NSX has enjoyed the addition of a record eight new brokers this year and the connection of our ninth being our first online broker is excellent news and further evidences the rapidly growing interest in NSX,” said Mr Cox.
Through a partnership with OpenMarkets, Paritech provides resources and infrastructure. Mr Klink said the trading platform was highly scalable and user friendly. According to Mr Klink, OpenMarkets is the first Australian stockbroking business to use cloud computing significantly, reducing capital expenditure and risk while allowing them to handle high trading volumes at any point and maintain security.
“This will allow us to introduce new developments faster and more efficiently as our broking business continues to grow,” said Mr Klink
He also said powerful trading web services will enable third parties such as wealth management companies and research providers to deliver integrated trading applications through their own websites or mobile apps at low cost.
According to OpenMarkets, the cost of a transaction is lower than its bank competitors, at $13.95 or 0.07 per cent per transaction.
