Luna Securities aims to boost stock trading with 0.12% fee, P500 maintaining balance

Luna Securities Inc., a relatively new stock brokerage founded in 2022, is offering an industry-low broker’s commission rate of 0.12% and a maintaining balance of P500.

"With our ‘commission revolution,’ we can, in our own way, help stocks compete with other emerging classes of financial assets,” Luna Securities president and co-founder Francis Diaz said at a press event in Makati City on Friday.

“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 comes the potential for higher investor returns and the incentive to trade,” Diaz added.

The stock brokerage firm’s chief said that the company is aiming to make the stock market accessible for the public.

“Crypto became a thing because it’s so easy to open an account, and it was really boosted because you could really come in at a low ticket. That’s what we’re trying to do; we’re trying to take away as many barriers… You can open an account in just five minutes, you can put in a minimum of P500, and we are rationalizing commission,” Diaz said.

Luna Securities’ move to lower its broker’s commission rate came after the Securities and Exchange Commission (SEC) allowed brokers to set their own commission rate for transactions with their customers without the regulatory minimum commission.

The broker’s commission rates were set at a minimum of 0.25% in 1973 and remained fixed until the SEC removed the minimum commission rules.

The corporate regulator said the decision was aimed at boosting capital market activity and encouraging public participation in the stock market.

“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 rates, all at the same time," said John Gatmaytan, chairman and co-founder of Luna Securities. —VBL, GMA Integrated News