Fintech stock Mogo (TSX:MOGO) saw shares rise as high as 15% late Tuesday. This came as the company launched MogoTrade, its commission-free stock trading application.
What happened? Mogo launched the application to become Canada’s only commission-free trading application. This includes free, real-time quotes on investments. While members can download the application as of writing and view stock prices, the commission-free feature will be rolled out in the first quarter of 2022.
The goal for Mogo is to create a “transformation” to a “mobile-first digital experience” for financial independence. While the company will begin with equities, Mogo plans on adding others assets such as cryptocurrency and non-fungible tokens (NFTs).
So what? It’s yet another move by Mogo towards arguably the future of investing. The company has already created partnerships with cryptocurrency companies to allow users to invest in cryptocurrency and add it to their digital wallet.
Furthermore, the Big Six banks usually charge a $9.99 commission fee to do trading. Of that, investors are usually about 15 minutes or so behind live share prices. When stocks begin to climb or drop, this can be invaluable time. And no commission fees means you don’t have to add that commission to your sell-point for your investment.
Now what? Mogo’s MogoTrade application should be a significant driver of funds in the new year. As member growth continues, the company expects strong revenue growth in the new year and beyond.
During its last quarter, Mogo increased its member base by 64% year over year. Its subscription and service revenue was up 126% year over year, though it saw a loss from investments. This is set to change, with MogoTrade and MogoCredit creating substantial revenue possibilities.
The company expects the next quarter to achieve year-over-year growth of between 110% and 115% for subscription and services revenue. Further, total revenue should achieve up to $80 million for fiscal 2022.
Shares of Mogo traded at $4.50 as of writing, up 11% or $0.44 from opening on Dec. 21.
The post Why MOGO (TSX:MOGO) Stock Jumped 15% on Tuesday appeared first on The Motley Fool Canada.
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.