Competition for the business of Irish investors could intensify with the introduction in Dublin next week of a new online share trading operation promising low dealing costs and rapid execution of deals. Aimed at active investors, including day traders, fund managers and retail investors, OctagonOnline.ie claims to offer the fastest trading system in the industry and the lowest commission rates in the Irish market.

The company says the commission on a $5,000 (€5,604) trade, using its software system, would be $20 compared with a minimum charge of $50 through "a conventional Irish stockbroker". Set up by four entrepreneurs and an as yet unnamed Irish bank partner, Octagon supplies online trading software and services and has been approved by the Central Bank to review and transmit order under the Investments Intermediaries Act 1995.

Initially, Octagon customers will be able to trade on the New York Stock Exchange , the American Exchange and the technology-heavy NASDAQ from their own personal computers. The system will be extended to other markets over the next year, said chief executive Mr Ian Warner.

Octagon offers customers direct real-time trading with "complete customer control over the trade and rapid trade execution and confirmation", he said.

Potential customers, who will be offered a free demonstration of the system, will have to set up a bank account in their own name in a nominated bank and lodge $10,000 before they can trade. They will have to meet SEC, Central Bank and Octagon compliance rules.

Octagon will charge a flat fee of $15 or $20 per trade based on the level of software used - for the lower commission charge, customers need to invest in more sophisticated software systems, which will cost about $200 per month. The commission charges and the cost of the shares bought will be deducted directly from the client's bank account.