Singapore-based fractional stock trading startup Gotrade has raised $15.5 million in a Series A funding round led by Velocity Capital Fintech Ventures.
MUFG, BeeNext, Kibo Ventures, Picus Capital, LocalGlobe, Social Leverage and Raptor have joined the round.
Launched in 2019, the Gotrade app allows users to invest as little as $1 in ETFs and fractional US stocks, commission-free.
In its first year, the company amassed over 500,000 users from over 140 countries, processing over $400 million across five million transactions.
Gotrade compares its service to Robinhood but without the “controversial” practice of order flow monetization. Instead, it makes money by charging 0.5% to 1.2% exchange fees if users choose to deposit their funds in local currency which is then converted into US dollars for trading.
The company is also testing a premium membership product that gives its users access to features such as candlestick charts, analyst ratings, price targets and risk measurement, for a monthly membership fee. of $2.
The funding will be used to expand a team that currently has 40 members and launch localized versions of the product, starting in Southeast Asia, specifically Indonesia.
Gotrade Founder Rohit Mulani says, “Investing in Southeast Asia is broken. Over 600 million people lack access to quality investment products at fair prices.
“They are subject to mutual funds with expense ratios exceeding 5%, savings products like gold with spreads of 3% and hidden fees sprinkled in their wallets – not only by holders but also by the companies that are supposed to be the disruptors.
“We believe that investment should be fair and that users should not have to bear these predatory costs.”