Derayah Financial, a leading independent brokerage platform in Saudi Arabia, has announced the introduction of zero-commission trading for Saudi equities. This move, following a similar launch in the U.S. market earlier this year, aims to broaden investor access and lower trading costs for retail investors within the Kingdom. The initiative underscores Derayah’s commitment to digital innovation and aligns with Saudi Arabia’s Vision 2030 financial sector development goals.
The announcement, made this week, applies to all clients trading Saudi stocks through Derayah’s digital platforms. This represents a significant shift in the Saudi brokerage landscape, traditionally characterized by commission-based fees. Derayah currently serves over 600,000 client accounts and manages assets exceeding SR 55 billion, experiencing a 17-fold increase in client base between 2016 and 2025.
Expanding Access with Zero-Commission Trading
The decision to eliminate commissions is driven by Derayah’s stated mission to make investing more accessible and affordable. According to the company, this aligns with the broader objectives of Vision 2030, which prioritizes financial inclusion and the development of a robust capital market. Lowering the barrier to entry for retail investors is expected to encourage greater participation in the Saudi stock market.
Impact on the Saudi Financial Market
Industry analysts suggest this move could spur increased trading volume as investors are incentivized to transact more frequently without incurring commission charges. However, the overall impact on market stability remains to be seen. The Saudi Exchange (Tadawul) has been actively promoting digital transformation within the brokerage industry, and Derayah’s initiative is consistent with this trend.
Additionally, the company highlighted its diversified revenue streams as enabling this change. Derayah generates income from various sources beyond traditional commissions, including financing solutions, investment fund products, and digital advisory services. This allows them to absorb the cost of eliminating commissions while maintaining profitability.
Mohammed AlShammasi, CEO of Derayah Financial, stated the company’s commitment to aligning its services with Vision 2030 goals by advancing digital financial solutions. He emphasized the focus on providing a seamless investing experience alongside advanced products for professional investors.
Derayah’s Continued Digital Investment
Derayah has established itself as a leader in digital investing in Saudi Arabia, consistently introducing innovative solutions. The company’s integrated digital platforms provide access to over 43 global markets, in addition to the Saudi market. This broad access, coupled with the new zero-commission structure, positions Derayah as a competitive force in the region.
Meanwhile, the company is focusing on developing data-driven and fintech-enabled solutions to further enhance its offerings. This includes smart trading tools and advanced analytics designed to support both retail and institutional investors. The broader trend of online brokerage is gaining momentum globally, and Derayah is actively positioning itself to capitalize on this growth.
In contrast to some traditional brokerage models, Derayah operates entirely through electronic platforms, reducing overhead costs and enabling greater efficiency. This streamlined approach allows the company to offer competitive pricing and a user-friendly experience.
Looking ahead, Derayah Financial plans to continue investing in technology and innovation to strengthen its position in the digital brokerage market. The company has not specified a timeline for further expansion of its zero-commission offerings to other asset classes or markets. Market observers will be watching to see how competitors respond to this move and whether it triggers a broader shift towards commission-free trading across the Saudi financial sector.
