Groww takes aim at Zerodha, begins testing stock trading platform

Groww takes aim at Zerodha, begins testing stock trading platform

Its entry could potentially open the gates to more new generation investment startups that intend to coax a small but growing number of people looking to invest directly in stocks. Australian dollar to US dollar news is dominated by the ongoing escalation of relations with China and the relative success of Australia in navigating the coronavirus pandemic. Follow the latest AUD/USD news at Follow the latest Wall Street Journal news on stock markets, finance, banks, hedge funds and private equity, with quotes for stocks, stock indexes and ETFs.

Investment platform Groww is testing its stock trading service among select users as it prepares to start brokerage services in a market dominated by Zerodha that is attracting the attention of fintech players.

Groww will soon go live with its stock trading service, said two people familiar with the matter. They did not want to be named.

Bengaluru-based Groww entered the investments space as a direct mutual fund selling platform and now wants to expand into stock broking. Its entry could potentially open the gates to more new generation investment startups that intend to coax a small but growing number of people looking to invest directly in stocks.

Paytm Money, a unit of the payments company, is expected to go live with a trading platform soon. Once live, these players will attempt to eat into a customer segment dominated by Zerodha, the country’s largest stock trading platform.

Zerodha has grown at a sprinter’s pace with a strong technology play, easy-to-use platform and aggressive discounting strategy. It has around 13 lakh active traders currently, offers mutual fund investments along with trading through Coin. It runs a popular knowledge sharing platform for trading enthusiasts.

All these make Zerodha is a formidable rival for an upstart.

Groww did not comment on the development. Its website still says ‘Coming Soon’ for stock trading.

“The platform is still being tested among our user base, but it is ready to go live within the next few weeks,” said one of the persons quoted above. “Like mutual funds, in case of trading also the attempt would be to simplify the entire process and make it attractive for new traders.”

The emergence of new players trying to challenge Zerodha in its home turf could significantly boost the brokerage ecosystem. The ten-year old bootstrapped yet profitable Zerodha managed to capture massive market share by going the discount brokerage way, said Abhishant Pant, founder of Fintech Meetup and an active angel investor in fintech startups.

Now for new platforms to take these traders away from Zerodha will be a challenge.

“What they can do is try to attract new users and expand the trading market overall, that is where the current Covid crisis has further complicated issues,” he said.

Pant said due to the current crisis many young employees with disposable income are seeing job losses and salary cuts around them. For them to enter into trading at this point is highly unlikely. The segment between 35 and 45 years of age, with a good salary and disposable income, might look at this correction in the market as an opportunity to start investing actively.

“Will these new platforms manage to attract this segment or will they choose more traditional brokers, that is the point which will decide success for these players,” said Pant.

Groww was started in 2017 by former Flipkart executives Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal. The startup is backed by YCombinator, Sequoia Capital and Ribbit Capital.

Groww competes in the direct mutual funds space with Paytm Money, Zerodha Coin and others.

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AUD/USD news: Aussie rises to 11-week highs trading near its highest level

AUD/USD news: Aussie rises to 11-week highs trading near its highest level

The Australian dollar (AUD) to United States dollar (USD) is one of the four “major” currency pairs and referred to as the “Aussie”. The USD is the most widely traded currency on global forex markets and the AUD is the fifth. In this pairing, AUD to USD, the Australian dollar is the base currency and the United States dollar is the quote. At the current price of 0.66 it takes $0.66 USD to buy 1 AUD.  

In the latest AUD/USD news the Australian dollar has rebounded substantially to pre-coronavirus levels, gaining 15 per cent since its low in mid-March and reaching levels not seen since February. Australia was able to effectively manage the outbreak and did not suffer to the same degree as Europe, the UK or the US. 

This has led to a quick rebound in consumer sentiment and spared the housing market, at least up until now. As with the rest of the world, the full economic impact is yet to be seen but it is safe to say that the effect should be less severe in Australia than most other developed countries. 

The AUD has surged over 1.75 per cent in early week trading versus the USD as Australia continues to effectively control the coronavirus in comparison to other major economies. AUD/USD forex news is reporting that the pre-pandemic resistance level of 0.6629 has been breached and there is significant potential of a breakout in the near term. 

The ability of Australia to combat the pandemic and recover more quickly has strengthened this potential. Traders should be watchful of global trade sentiment as the Australian domestic economy is relatively minor in comparison to its reliance on exports. 

Australia has not engaged in as heated a war of words with China as the United States, but relations are still at a low for recent history. The recent political manoeuvring by China in regard to Hong Kong autonomy will strain relations with both countries. 

Traders should follow political statements from both the US and Australia as the situation continues to escalate. News of further shutdowns in China, Europe or the US could affect the Australian economy and put upward pressure on the safe haven USD. 

Many developed economies may need to implement a negative interest rate policy to combat deflationary pressure and hesitation on the part of central banks could also lead to a strengthening of the USD relative to the AUD. 

The latest AUD/USD news has focused on the post-pandemic recovery, the ability to restart commodity production and government stimulus announcements, as well as the state of the Chinese economy. 

While Australia and the US are both major trading partners with China they are at different ends of the spectrum. Australia is a key supplier of raw materials to Chinese manufacturing with the US being the largest consumer of the final products. 

The positive indications from the Chinese economy have impacted Australian dollar to US dollar news differently, as Australia ramps up commodity production and President Trump continues to escalate already tense relations. This has played well for the Australian dollar as it continues to strengthen even when some considered it to be overvalued. 

The massive stimulus packages offered by the United States have not gone unnoticed. At the time of writing this has not changed the perception of the USD as the global reserve currency but conversations surrounding the ability of the US to continue issuing dollars have started. 

The demand for dollars, especially in uncertain times has continued to strengthen the USD but the risk of inflation further down the road is increasing with each stimulus announcement. It is possible that in the mid to long-term there is a minor shift towards another major reserve currency, such as the Euro, for global transactions. 

AUD/USD is a highly liquid and relatively stable major currency pair allowing intraday traders to profit from AUD to USD trend movements. Historically, traders have also been drawn to the significantly different central bank interest rates in the two countries as Australia tends to set higher than average spot rates. 

This is less of a factor currently as both countries have slashed rates in an effort to support the economy but it is likely that Australia will be in a position to gradually increase interest before the US is able to do so. The geographic distance of the two countries allows for the release of key economic data at different times during the day and the continual price movements. 

Given current AUD vs USD news the currency pair is considered a buy. The USD is strong and should remain stable in the short term while the AUD has potential to break through the resistance levels. As the world starts to reopen after the coronavirus pandemic there should be a slow shift towards taking on additional risk which will benefit the AUD as investors trade their dollars for other currencies. 

Given the intensifying back and forth between President Trump and Xi Jinping it is likely that Australia will soften its stance prior to the US doing so. This will further strengthen the upward pressure on the AUD relative to the USD. Any significant setbacks in the global economic recovery will result in strengthening of demand for safe haven currencies such as the USD and traders should monitor announcements carefully. 

Follow the latest forex news and trade the AUD/USD currency pair with Make you own bets on the AUD to USD price forecast and trade it with CFDs.

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Author: Douglas Thane

Stock Market & Finance News - Wall Street Journal

Stock Market & Finance News – Wall Street Journal

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Groww takes aim at Zerodha, begins testing stock trading platform

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