STOCK BROKERAGE firm Luna Securities, Inc. targets to expand its market reach with a lower commission rate pricing program, a company official said.
鈥淣ot only do we want more Filipinos to experience stocks, but we also want stocks to be top billing as regards to their money growing exploits,鈥 Luna Securities President and Co-Founder Francis Patrick T. Diaz said during a media briefing in Makati City last week.
鈥淲ith our commission revolution, we can, in our own way, help stocks compete with other emerging classes of financial assets,鈥 he added.
Mr. Diaz said this as Luna Securities announced a commission rate pricing program where the starting commission rate for all users begins at 0.2% and falls to 0.12% as determined by the user鈥檚 per order executed gross traded value.
鈥淓very Luna client will start with a commission rate of 0.2%, which is 20% lower than the current minimum industry standard of 0.25%. If Luna made stocks accessible and advanced before, it is also affordable now,鈥 he said.
鈥淟una 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 comes the potential for higher investor returns and the incentive to trade. Luna understands there is more work to be done, but we鈥檙e here for it, and we are ready,鈥 he added.
Meanwhile, Luna Securities Chair and Co-Founder Michael John P. Gatmaytan said in the same briefing that Luna runs on a cloud-based, full digital user interface, as well as an end-to-end system designed by the company鈥檚 financial technology team.
鈥淭his allows us to be very efficient and able to offer best in class products, service, and best in rates, all at the same time,鈥 he said.
In April, the Securities and Exchange Commission removed the minimum broker commission fee via Memorandum Circular No. 7.
Before the circular, the SEC had issued a resolution in 1977 setting a broker鈥檚 commission rate at 1.5%, while guidelines from the Philippine Stock Exchange mandated a minimum commission ranging from 0.25% to 0.05% of the value of a trade transaction.
Luna Securities was established in October 2021. It began live trading operations in March 2022.听 The stock brokerage launched its mobile trading application in April 2023.
The company鈥檚 sole shareholder is Millennium Advisors and Management Corp., a Filipino company founded by four professionals with experience and expertise in banking, finance, investments, stock broking, and technology. 鈥 Revin Mikhael D. Ochave
