Digital wealth manager Syfe expands into stockbroking on retail investor wave

Singapore-based digital wealth management start-up Syfe is expanding into stockbroking, tapping the increased global appetite among retail investors for trading services.

Investors were able to join a waiting list from yesterday to gain early access to the Syfe Trade platform, which will initially allow trading of United States-listed stocks and exchange-traded funds ahead of its official launch next month, according to a statement.

Syfe is also in the midst of setting up an office in Hong Kong and will offer trading of Singapore shares within three to six months, its chief executive Dhruv Arora said in an interview.

There is going to be "a massive shift of wealth from savings accounts to investment accounts" amid Asia's economic rebound and ultra-low interest rates, said Mr Arora.

The retail trader participation in markets that ramped up last year is not dissipating, he added.

The spike in trading interest from mom-and-pop investors during the Covid-19 pandemic has pushed a slew of tech-focused companies to set up brokerage units in Singapore, as it positions itself to be a fintech hub.

Over the past two years, Tencent Holdings-backed Futu Holdings and Interactive Brokers Group have opened offices, while Xiaomi-backed Tiger Brokers released a trading app in Singapore, at a time when China is increasing scrutiny of online brokerages.

Syfe Trade will start by giving customers five free trades each month, then charge 99 US cents (S$1.35) per trade. It will also offer fractional trading as it faces competition from wealth management platforms at banks and brokerages.

Syfe's target customers are non-professional investors aged between 20 and 50, said Mr Arora.

The company raised $40 million in July in a Series B funding round led by Valar Ventures, which is backed by technology billionaire Peter Thiel. Syfe has held a fund management licence since 2019.

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