Luna Securities Inc. announced it would offer an industry-leading broker commission rate of 0.12 percent to all clients, account holders and users.
Luna Securities president Francis Diaz said in a media event the company’s commission pricing program rates start at 0.2 percent, which could drop to 0.12 percent based on the user’s gross traded value per order.
This represents a significant reduction from the industry minimum rate of 0.25 percent, providing investors and traders with up to a 50 percent cut in fees.
“With our commission revolution, we aim to enhance the competitiveness of stocks alongside emerging financial assets. We’ve established a low minimum balance of just P500, and now our fee structure is even more compelling. Lower fees can lead to higher investor returns and encourage more trading. We recognize there’s more work to do, but we are fully committed,” Diaz said.
Broker commission rates have been fixed at a minimum of 0.25 percent and P20 since 1973, but this changed after the Securities and Exchange Commission (SEC) lifted the minimum commission rules with SEC Memorandum Circular 7-2024 on April 17, 2024.
This move is expected to encourage public participation in stock markets by allowing the investing public to engage the services of broker of their choice based on cost preference.
“Luna utilizes the latest cloud-based technology with a fully digital user interface and an in-house designed end-to-end system. This efficiency enables us to deliver top-tier products, services, and competitive rates simultaneously,” Luna chairman and co-founder John Gatmaytan.
The company said that by lowering commission fees, it would attract both novice and experienced investors who have been hesitant to enter the stock market due to high costs.
Luna Securities launched its mobile trading app to the public in April 2023. It is one of the youngest member-brokers of the Philippine Stock Exchange.
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