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2016-05-04

Avanza: Avanza is first in Sweden to launch free stock trading

Press Release, 4 May 2016, 08:15 CEST

Beginning today all new and current customers with savings capital
below SEK 50,000 will be offered free stock trading on the Stockholm
Stock Exchange. The aim is to make it possible for more people to
begin saving in stocks at the same time that Avanza consolidates its
position as a price leader.

"By offering free stock trading, we want to create an interest in
stock savings among those who aren't yet investing in equities.
Through our simple decision-making tools, we also hope that those who
don't feel comfortable making their own investment decisions will
realise how much fun stock investing can be and not let their money
gather dust at a zero per cent interest in a savings account," says
Martin Tiveus, CEO of Avanza.

Saving in stocks and equity funds pays off. In the last ten years the
Stockholm Stock Exchange has offered a return of 106 per cent1, and
those who invested one krona in Swedish stocks at the turn of the
previous century have seen that grow to SEK 205,300 today, an annual
increase of 11.2 per cent2. In spite of this, nearly one fourth of
the savings capital in Sweden is in savings accounts, where negative
interest rates do not produce any return at all. According to
Statistics Sweden, only 13.6 per cent of the Swedish population owned
stocks at the end of 2015, and in the age group 18-34 it was only 7.8
per cent3.

Investors with more than 12 stocks in their portfolio and good
diversification are those who succeed best over time. Monthly savings
contributions also offer advantages, since you buy when prices are
both rising and falling. At the same time the price and fees on
savings are very important to creating value over time. If you pay
the high minimum commissions charged by Sweden's major banks, which
average SEK 92, a lot of money will disappear when buying smaller
quantities, which puts small investors at a disadvantage.

The free offering is expected to have a marginal impact on Avanza's
results. The decrease in revenue from equity trading is expected to
be offset by higher customer traffic and product sales. The number of
customers is what drives net inflows in the long term and grows
operating income. History shows that price cuts that make savings
available to more people have led to increased customer growth. Since
Avanza's minimum commission was cut to 1 krona at the end of 2014,
the number of commission notes has tripled to over 3 million per
quarter. The number of customers with stockholdings has increased by
49 per cent in 18 months.

"More new customers and growing savings capital give us the
opportunity to offer the market's lowest prices," Martin Tiveus
continues. "This is thanks to a modern IT platform with economies of
scale and a leading cost position. This is our way of giving back to
our customers, which is the essence of our business idea - more for
you and less for the bank."

Commission-free trading on the Stockholm Stock Exchange applies to
online trading in commission class Start. You are eligible for Start
if you have never had more than SEK 50,000 in savings with us. If you
reach SEK 50,000 or have more than 500 trades during a 12-month
period, you will automatically be placed in commission class Mini,
with commissions from 1 krona, and cannot select Start again.

1 SIX Return Index 30 April 2006 to 29 April 2016.

2 Dimson, Elroy, Marsh, Paul och Staunton, Mike. 2002. Triumph of the Optimists: 101 Years of Global Investment Returns. 1. uppl. Princeton, USA; Princeton University Press, and SIX Return Index.

3
http://www.scb.se/Statistik/FM/FM0201/2015H02/FM0201_2015H02_SM_FM20SM16....

For more information, please contact:

Martin Tiveus, CEO
+46 (0)70-861 80 04

Sofia Svavar, Head of Investor Relations
+46 (8)409 420 17
sofia.svavar@avanza.se

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http://news.cision.com/avanza/r/avanza-is-first-in-sweden-to-launch-free...
http://mb.cision.com/Main/350/2001922/510774.pdf

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