SelfWealth Share Price up on US Trading Functionality (ASX:SWF)

By Lachlann Tierney, Monday, 07 December 2020

At time of writing the share price of SelfWealth Ltd [ASX:SWF] is up 6.2%, trading at 60 cents. After a sharp uptick as retail investors flooded in, the SWF share price slipped following an early September high

At time of writing the share price of SelfWealth Ltd [ASX:SWF] is up 6.2%, trading at 60 cents.

After a sharp uptick as retail investors flooded in, the SWF share price slipped following an early September high:

Source: tradinview.com

The company is on the verge of adding US trading functionality to its service, something which boosted its share price today.

SWF share price lifts on December launch

Here are the key points from today’s announcement:

US trading for SWF retail clients to launch on time, 14 December
Supported by PhillipCapital
Available to the more than 65,000 SWF clients via the app later in December

The company highlighted features such as, ‘a USD Cash Account, competitive FX rates when transferring money between the AUD and USD Cash Accounts, low-cost and flat-fee brokerage of USD 9.50 per trade and the choice of over 7,500 US securities across all major US exchanges.’

Outlook for SWF share price

A lot depends on competition here.

This is a legitimate risk to the company’s business model, similar to what happened in the US with their trading platforms.

If a ‘race to the bottom’ on trading fees plays out in Australia, for example if CommSec cuts or eliminates their fees, SelfWealth’s model may need to adapt.

In such a scenario, SWF would likely need to offer a greater variety of products to monetise their client base.

A client base that expanded rapidly shortly after lockdown ensued.

The trend SWF is benefitting from is a powerful one too.

Like many other ASX-listed fintechs, they have carved out their niche and taken a bite out of the Big Four’s business.

Which is exactly why you should wrap your head around these three small-cap fintechs.

It’s a great report, and profiles a trio of cutting-edge companies that you may not have heard of before.

You can download that report for free here.

Regards,

Lachlann Tierney

For Money Morning

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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Lachlann Tierney

Lachlann ‘Lachy’ Tierney is passionate about uncovering hidden opportunities in the microcap sector. With four years of experience as a senior equities analyst at one of Australia’s leading microcap firms, he has built a reputation for rigorous research, deep-dive due diligence, and accessible investor communications. Over this time, he has vetted seed, pre-IPO and ASX-listed companies across sectors, conducted onsite visits, and built strong relationships across the microcap space. Lachy is nearing completion of a PhD in economics at RMIT University, where his research focuses on blockchain governance and voting systems. His work is housed within the Blockchain Innovation Hub at RMIT, a leading research centre for crypto-economics and blockchain research. He holds a Master’s degree from the London School of Economics and an Honours BA in Philosophy and Politics from the University of Melbourne. Born in New York and raised in California, Lachy grew up a few blocks from biotech giant Amgen and counts among his peers various characters in the overlapping worlds of venture capital, technology and crypto. When he’s not researching microcaps, he’s most likely sweating it out in a sauna or dunking himself in cold Tasmanian water.

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