HeyTrade was born in the final stretch of 2021 and already accumulates some 10,000 clients. Ramiro Martínez-Pardo, its CEO and co-founder, is in charge of the new neobroker on the market, now that that word is so fashionable that a new firm appears every six months in Spain. But this case is different because it is a 100% national product, having the support of BekaFinance.
Are you the BekaFinance broker?
We operate as an agent for BekaFinance Sociedad de Valores, relying on the license and its experience, who, in turn, is the first investor to have had the project. The route we want to have is for HeyTrade to have its own way. In this first phase it seemed important to us to have a partner of this type, because it inspires confidence, since we want to go to a more traditional public, not only to the one that is starting, and to do it with the same guarantees, with custody in Spain and regulated by CNMV, with better conditions.
Who are your competitors?
We try to take the best of both worlds and the first one is the traditional broker, that of the banks. The best thing about them is the security they can inspire, the operations they have, better executed and more solid; and, on the other hand, the best of neobrokers, openbanking, better user experience and much more affordable.
Regarding fees… all neobrokers are always the cheapest, do you think so too?
The most curious thing is that I think that surely we are the cheapest, without saying that we are free. Overall, for the average user, we are the cheapest option by far, we do not have any fixed cost, neither for custody, nor for accessing any type of information, and we simply charge for the operations that the user can do. For US securities there is no execution fee per se, we just apply a small spread of 10 basis points, which is the most competitive right now, over the average exchange rate of euro/dollar or euro/pound, etc. For European values we apply 5 basis points in the purchase/sale with a minimum of 2 euros. We believe that in currencies we are the cheapest option out there right now and in European markets we believe that one of the lowest. But we do not want to focus only on the price, what we are not saying is that we are free.
Do you offer all the shares of the Continuous Market?
Yes. We would like to be able to increase over the next few months to . It is something that neobrokers do not have, not even all the . In the coming months we are going to introduce a two-tier structure depending on the size of the portfolio, starting at 25,000 euros.
And ETFs…?
Of ETFs we want to expand the offer because right now we have a limited selection.
Do you think they have missed the train of the pandemic, given the boom in customers, and as a ‘backdrop’ the rise in rates?
Short answer? Yes, it was a time of great interest and it would have been positive to be there at the forefront, but what it has created is people interested in the market, and our positioning will help us to stay with us for the long term, not just take advantage of a boom
What is your average customer?
It is evolving. We started with a type of client perhaps older than we would have thought, very expert, which in hindsight makes sense because he is a client who is aware of what’s new. With an average portfolio of between 3,000 and 4,000 euros, although we have clients with portfolios well above 100,000 euros. The average purchase/sale transaction is around 1,800 euros.
Everyone is always talking about the great potential that exists in Europe for neobrokers, with only a tenth of the population investing.
The long-term trend is clear. At the moment in which cryptocurrencies are consolidated, they will retain the interest of younger people in the world of investment. We are also seeing more and more women, although the percentage is still very low and these two trends are a tailwind.
Does a VIX above 20 benefit you?
Higher volatility periods make clients more active, that’s right. But, in the long term, we want to offer a more comprehensive solution, such as funds.
Are you looking to be a fund supermarket?
I don’t want to get ahead of myself. We are working on it.
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