Finance Feeds logo

Japanese broker Monex continues to slash equities trading fees amid sliding trading volumes

Maria Nikolova

Monex Inc says it will lower the minimum fee for US equities trading from US$0.1 to US$0.01 in what seems to be an attempt to shore up falling trading volumes.

Japanese online trading company Monex Inc, a part of Monex Group, Inc. (TYO:8698), has earlier today unveiled its plans to further reduce the trading fees for US equities trading. The brokerage intends to lower the minimum fee (excluding tax) for U.S. equities trading from US$0.1 (10 cents) to US$0.01 (1 cent) for trades that are executed from July 22, 2019.

Monex has already announced it would reduce the minimum fee for US equities trading from US$5 to US$0.1 from today, July 8, 2019. Starting from Monday, July 22, 2019, Monex will further lower the minimum fee for U.S. equities trading to US$0.01 (1 cent).

The fee reduction happens amid sliding trading volumes in the Group’s Japanese business. In the year to end-March 2019, Monex Inc (the Japanese subsidiary of Monex Group) saw revenue decrease due to lower equities trading volume. The segment registered ¥1.8 billion impairment loss on fixed assets related to Japanese Equities trading tool “TradeStation”, which resulted in ¥1.7 billion of net loss due to reevaluation of book value based on the actual performance, while the service continues to be provided. Monex has said that the impairment and the revision of future amortization for other fixed assets will result in a decrease in depreciation and amortization cost in FYE Mar. 2020 by ¥1.6 billion per year.

In today’s announcement, however, the brokerage did not mention anything about the lower revenue from falling trading volumes in its Japanese business. Instead, Monex mentioned its strategy “For Creative Minds,” a brand statement announced in November 2018. According to this strategy, Monex, Inc. is committed to proposing innovative, “future finance,” with a creative mindset, leveraging new ideas and perspectives that go beyond the traditional framework.

Subscribe

Read this next

Digital Assets

FINMA-regulated digital asset provider Taurus expands into Germany

This expansion follows recent moves by BaFin to accelerate the licensing of crypto custody services, aiming to boost market confidence. Following this, several new licenses were issued, notably to Commerzbank, making it the first full-service financial institution in Germany to receive a crypto custody license.

Inside View

Stocknet’s Nick Hall defends gamification as trading platform market set to hit $15.34b by 2030

“The growing popularity of gamified trading has the potential to tackle this financial literacy gap. Rather than simply giving users unfettered access to markets and letting them figure things out for themselves, platforms can offer virtual skill games and challenges to help educate traders and prime them for success.”

Inside View

Infographic: Interest rate and FX derivatives are driving rise of OTC derivatives market

These trends suggest a growing and evolving OTC derivatives market, with an increased focus on risk management and regulatory compliance. The rise in clearing rates, along with the increased initial margin requirements, reflects a more cautious approach to risk in the financial services industry.

Market News

Bank of Canada’s Final 2023 Policy Update on the Canadian Dollar and Future Monetary Landscape

The Bank of Canada’s final policy update for 2023, as reported by Bloomberg, had a relatively subdued impact on the performance of the Canadian dollar, especially when compared to the discernible market reactions following prior BoC policy decisions throughout the year.

Inside View

DTCC’s Systemic Risk Barometer Survey found 2024 US Presidential Election as a top risk

U.S. political uncertainty, particularly regarding the 2024 Presidential Election, has emerged as a key risk, with 51% of respondents highlighting it as a major concern. This reflects the potential impact of election outcomes on market conditions and the industry.

Executive Moves

Options Technology promotes Laura McCann to CFO

“Laura’s promotion to CFO is the next stage in our long-term strategy of building a world-class finance team servicing the global business from our Belfast office. Back in 2016, Jon took on the challenge of laying the groundwork for that vision. Laura has been an integral part of the strategy from day one.”

Digital Assets

Thailand’s crypto economy under the spotlight: a report by HashKey Capital

“I’m excited by the rapid expansion of Thailand’s Web3 sector. With over 3 million overall crypto users and 600% growth in the market in recent years, the dynamism in our DeFi and NFT sectors is clearly evident. Thailand is increasingly becoming a hotspot for digital nomads, drawn by our crypto-friendly policies, affordable living costs, vibrant food and beverage culture and diverse cultural landscape.”

Retail FX

Webull Australia offers 5.4% yield on uninvested cash

“US dollar money market funds are heavily regulated, meaning client funds are managed in a safe, reliable and trusted environment, which is of critical importance to us, and continues to remain top-of-mind for our clients.”

Digital Assets

Bybit welcomes Ethena’s USDe, a decentralized stablecoin utilizing delta-hedging staked Ether

“Our collaboration with Ethena Labs represents our commitment to solving some of the biggest challenges in crypto today, not least, the creation of a decentralized stablecoin. The integration of USDe on Bybit expands our stablecoin offerings, providing our users with an array of uncorrelated solutions accessible from our Unified Trading Account.”

Bybit
<
✖