A young local stock brokerage, Luna Securities, Inc., is upping the ante in the competitive industry by slashing down its broker’s commission to an industry best rate of 0.12 percent to all of its clients, account holders and users of its trading app.
In a media event, the company launched its new dynamic commission rate pricing program, where the starting commission rate for all users begins at 0.2 percent, and falls to a best rate of 0.12 percent, as determined by the user's per order executed gross traded value.
These rates are a significant discount to the current industry minimum rate of 0.25 percent of trades, with Luna's 0.12 percent marking a more than 50 percent cut in rates that can be had by any investor or trader today.
"If Luna made stocks accessible and advanced before, it is also affordable now," said Luna Securities President and Co-Founder Francis Diaz.
He added that, "With our commission revolution, we can, in our own way, help stocks compete with other emerging classes of financial assets.”
“Luna began with a better user experience and the lowest minimum maintaining balance of just P500. Now we offer a compelling fee structure.
“With lower fees come the potential for higher investor returns and the incentive to trade. Luna understands there is more work to be done, but we're here for it, and we are ready" added Diaz.
Broker commission rates have been set at a minimum rate of 0.25 percent and P20 since 1973, and remained fixed until the Securities and Exchange Commission (SEC) removed the minimum commission rules via SEC Memorandum Circular 7-2024, issued last 17 April 2024.
SEC Chairperson Emilio B. Aquino declared then that the move was a bid to boost capital market activity, align the Philippines with other countries, and to encourage public participation in stock markets by allowing the investing public to engage the services of broker of their choice based on cost preference.
"Luna runs on the latest technology available, with a cloud-based, full digital user interface, plus an end-to-end system designed in-house by our fintech team. This allows us to be very efficient and able to offer best in class product, service, and best in rates, all at the same time" said Luna Chairman and Co-Founder John Gatmaytan.