Singapore – Global investing platform Gotrade has expanded to Indonesia to enable Indonesian users to invest as little as US$1 in the likes of Tesla, Apple, and Netflix, amongst others, on a commission-free platform.
According to Gotrade, it has picked Indonesia as the first market to launch a local version of the platform because it was there that the problem seemed most pressing with mutual fund fees frequently exceeding 5%. Interestingly, local brokers are not permitted to offer foreign securities within the country, but are permitted to offer derivatives of foreign securities.
With this in mind, Gotrade has partnered with Valbury Asia Futures, the Jakarta Futures Exchange, and the Futures Clearing House of Indonesia – all regulated by Bappebti, the derivatives regulator in Indonesia, to design a fully backed derivative that gives the end-users market access to U.S. stocks.
The teams at Gotrade, Valbury, the Jakarta Futures Exchange and Kliring Berjangka Indonesia worked closely with local regulators to enable dollar-based investing and nine-decimal places fractional share investing. For instance, if Tesla is trading at US$1,000/share, user can buy 1/1,000th of a Tesla share for US$1.
Andrew Haryono, Gotrade’s co-founder Andrew Haryono, noted that their team is on a mission to completely reinvent investing for millions of Indonesians.
” I am thrilled to be a part of the team at Gotrade and am excited to be a part of the next phase of the company’s hypergrowth,” said Haryono.
Just recently, Gotrade has also raised US$15.5m in a Series A round led by Velocity Capital Fintech Ventures. This newly secure fund will help the platform grow its team of 40 and launch localised versions of its product in various markets, starting with the Southeast Asia region.