The recent Gamestop-fueled surge of interest in mobile stock trading has made it clear that apps like Robinhood, Webull, and E-Trade aren’t going away anytime soon. These services have all seen meteoric usage and, in turn, surging revenue. Whether it’s through fee-based trading or commercialized on the back-end (selling equity data to third-parties), there’s a lot of money to be made if you’re able to launch a decent stock trading app.
But how do you differentiate yourself from the pack? Apps like Robinhood have a newly-acquired massive user base and are going to continue growing. How does an app compete with the bigger services? By taking a novel approach to trading that is going to be fascinating to watch.
The app, PennyStox, is rumored to allow unlimited trading on stocks, bonds, cryptocurrency, and even off-track betting. The only catch? You can only invest one penny at a time. For example, if you wanted to jump into the Gamestop ($GME) frenzy which is currently trading at about $325, you’d need to do 32,500 trades at one penny each. It’s labor-intensive as you need to submit a trade for each penny. Plus PennyStox says it only takes a “one cent fee” for every trade. So if you were to buy a stock for $325, PennyStox would take $325 in fees, also in pennies.
Our sources say the app will never restrict trading thanks to their innovative business model. That’s good news for traders who have been severely limited by the current popular trading apps.
It’s an interesting proposition as this new approach would certainly limit the speed at which many trades can be made, giving the buyer ample time to regularly reassess the decision while they slowly-but-surely conduct tens of thousands of transactions on their smartphone. According to our sources, the PennyStox is set to be unveiled on all Blackberry devices by the end of the month.