HeyTrade challenges the banking industry with up to 95% lower trading fees
HeyTrade will be launched this summer and will allow investment in more than 700 securities in European, Asian and American markets. It will operate under the license of Beka Finance, although it aspires to be independent.
A new fintech made in Spain is set to conquer the stock brokerage market: HeyTrade, an investment platform that will operate under the license of Beka Finance, will offer discounts of between 70% and 95% compared to traditional banking fees to operate in the markets, but will provide the same security as the latter.
“The aim of our platform, which will be launched this summer, is to ensure that commissions do not eat into savers’ returns, while at the same time providing them with the reliability of a Spanish custodian, such as Cecabank, and the backing of a Spanish securities company, as Beka Finance, which is also the firm’s first institutional investor,” says Ramiro Martínez-Pardo, CEO and co-founder of HeyTrade, who argues that they are capable of being “a broker comparable to banks, but with the best prices on the market”.
The executive maintains that they are competitive for an investment of 1,000 to 300,000 euros, “although our target audience will be investors of 6,000 to 10,000 euros”. The great novelty is that there will be very little difference in price by market: it will be very similar to operate in Spain, in the rest of Europe or in the USA. “The open banking approach and the automation of processes are the keys that allow the platform to reduce prices,” adds the manager.
HeyTrade clients will be able to trade in more than 700 securities of companies listed in European, Asian, North American, and Latin American markets. Among them will be the Ibex 35 companies, as well as exchange-traded funds (ETFs) and a large part of the securities of the world’s main stock exchanges. However, the aim is to expand the range of possibilities as the platform develops and according to the preferences expressed by customers.
The new platform relies heavily on open banking technologies to improve the entire registration process as well as its operations. “In a matter of five minutes, users will be able to register and start trading,” continues Martínez-Pardo, who insists that the aim is to make trading with HeyTrade easier than with each user’s bank broker, “and we believe that these technologies eliminate barriers and frictions”.
After its launch in Spain, the Spanish investment platform plans to conquer other EU and Latin American markets. And to do so quickly. Its goal is to close the year with some 100,000 clients and, in nine months, to make the leap to two countries on the other side of the Atlantic or in Europe to extend its coverage to two more in those regions within 12 to 15 months.
The platform, also co-founded by Benito Méndez and which will be launched in Spain within a year of the project’s launch, has a team of 25 people, most of whom have extensive experience in fintech and technology companies. To accelerate its international bet, the company, which aspires to be an independent project from Beka Finance (“although this helps us to give a lot of confidence to the client”), plans to carry out a series A financing round with Spanish and international funds. “We have started talks and the idea is to accelerate the process in the coming months. We don’t want there to be a period of impasse where we relax.”
An extended version of this story was originally published in the Spanish newspaper Cinco Días. Click here to read it.