Monex continues to explore business opportunities in APAC

Maria Nikolova

The Japanese business of the broker saw FX income rise but trading volumes declined in the quarter to September 30, 2018.

Online trading services provider Monex Group, Inc. (TYO:8698) has earlier today posted its operating and financial results for the second quarter of its fiscal year to March 31, 2019, with the Japanese business of the broker marking a rise in FX income but lower trading volumes.

In the United States, Monex’s TradeStation saw net financial income continue to grow on the back of rising interest rates in the quarter to September 30, 2018. It now makes up 31% of net revenues. This helped drive the record high segment profit of ¥ 0.4 billion, up 73% from the preceding quarter.

In Japan, despite an increase in FX income, a decline in market trading volume drove the brokerage commissions down. Segment profit was ¥ 0.8 billion, down 13% from the previous quarter.

Regarding Monex’s Asia Pacific business, the broker explained that Monex Boom Securities increased its revenue when compared to the preceding quarter mainly due to an active trading by large clients. Monex Securities Australia started its operations in January this year, which means it has only begun to develop its business. Segment loss was ¥ 6 million for the three months to end-September 2018.

Monex continues to explore business opportunities in the Asia Pacific region. It has a successful business in Hong Kong too, and provides technology and knowledge of online brokerage business through a joint venture in PRC.

Across products, the Active Trading offering has won more fans, registering over 14,000 account openings. Number of funded accounts and active accounts both increased by 10% compared to the preceding quarter. The trading volume share of TradeStation via Monex Securities, however, declined from 5.5% in the quarter to June 30, 2018, to 4.9% in the quarter to September 30, 2018. On the brighter side, the total revenue from “TradeStation” including net financial income increased by 25% from the previous quarter.

With regard to US equity trading, Monex says the number of transactions increased by 45% and number of active accounts increased by 26% from the equivalent quarter in 2018. Quarterly revenue reached ¥ 180 million, up 48% from the same quarter a year earlier.

In terms of FX trading, Monex says it will be cutting the spreads on 16 currency pairs in the Monex FX service “FX PLUS”, effective November 1, 2018, aiming to increase Monex’s client base and trading volumes.

Monex Adviser, which was launched in October 2017, continues to grow. Its investment balance stood at about ¥ 1.2 billion at the end of September 2018. This compares to about ¥ 1 billion at the end of the previous quarter.

Let’s recall that this is a robot adviser service where customers can determine their own investment policy and easily manage their assets with the support of professional advice.

Monex Stock Scouter and Trade Carte FX also attracted significant client attention during the quarter.

Monex has launched investment information media “Money Clip”, which boasts a mobile-friendly design. It integrates various investment information offered by the company such as the latest market trends and the articles for trading beginners. “Money Clip” creates articles and a new channel targeted at millennials. It aims for improving the recognition of Monex Securities among trading beginners.

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