Sale of Foreign Shares in Ukrainian Bank

by Olha Povaliaieva
Tuesday, January 25, 2022
Sale of Foreign Shares in Ukrainian Bank

Ukrainian mobile bank "Monobank" started testing the sale of shares from abroad

On January 24, Monobank co-founder announced the launch of a new project based on a banking organization. A test mode project allows transactions with shares through a bank application. As the bank’s co-founder, Oleh Gorokhovsky, explained, an additional application was developed to launch this possibility. Shares of foreign companies with different market orientations can be acquired through it. The Monobank will act as an intermediary. The agreements will be concluded through international brokers. Monobank cooperates with the Cyprus broker Exante.

To start working with stocks, it is necessary to install the application Mono invest. Until April, the commission for trading in shares will be no more than 0.01% of the transaction value. But the interest charged shall not be less than $0.01. In April, the cost of application services will increase, and users will have to pay at least $1 of the transaction. It is planned that the commission will reach 0.3% in April.

The acquired shares will be held in the account of the foreign broker holding them in favor of the Ukrainian bank. The Monobank will own shares in favor of the client. The foreign broker deals insecurities so that the transaction price will be quoted everywhere in dollars. Ukrainian banks will take prices from international exchanges.

In Ukraine are planning to launch such a service to develop international business relations in 3 more banks. These include the state bank Privatbank, Pumb, Alpha-Bank.

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