Stox Gets $8M Series A To Make Equities Trading More Accessible

Stox is an online broker that wants to make trading stocks less mystifying for new investors. The London-based company announced that it has raised an $8 million Series A round led by Singulariteam. The site is currently in beta in the U.K. and will launch in the U.S. later this year. Once it opens to the public, it will join a roster of other online brokers that target beginning investors. These include Andreessen Horowitz-backed Robinhood, as well as Wealthfront and Betterment, which both build diversified portfolios for clients. Stox co-founder and chief executive officer Roy Shaham says that the platform sets itself apart with a simplified user interface and social features. Along with all the usual services of an online stock brokerage, Stox lets users follow and copy the trades of investors with a strong track record, a feature designed for people who are intimidated by equities trading. “A basic picture of how traders are doing will be visible—while obviously protecting the anonymity of the user—and based on that information, other users can choose to follow or piggyback for an added fee,” says Shaham. “We felt this served two primary goals. First, it gives talented traders an ability to maximize their own skills and develop their personal brand. Second, it gives novice users the ability to learn from others and increase their understanding in a far more substantial way.” Stox uses a commission-based revenue model, which Shaham believes “is the clearest and fairest way to engage with users” since it means investors know how the site is making money from them. Venture capital firm Singulariteam is led by Mobli founder and CEO Moshe Hogeg and its backers include leading Chinese tech firms Tencent and Renren. In a prepared statement, Hogeg said “we are always looking for companies that turn traditional sectors on their heads, and Stox has the potential to make online trading effective, accessible and fair without forcing users to sacrifice the quality or legitimacy of the trading environment.”
Catherine Shu

Catherine Shu is a Writer at Gigabuzz, focused on covering early-stage startups, especially those with a technology focus and great perks.

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