Monex sets ambitious targets for TradeStation in Japan

Maria Nikolova

Monex’s plans for the platform include trading volumes of JPY 800 billion per month in the medium term.

Japanese online trading services provider Monex Group, Inc. (TYO:8698) has earlier today posted its financial metrics for the third quarter (October-December 2016) of its fiscal year to March 31, 2017, with the report shedding light on the progress the group has made with regard to its cost-reduction efforts and the plans that it has for its subsidiaries across the globe.

To begin with, Monex boasted the benefits (and also reported the associated costs) of the implementation of its new backbone system in Japan. The broker completed the migration to the new backbone system in January 2017, and has obtained flexibility for development. Monex anticipates system-related cost reductions of JPY 150 million per month during the full year to the end of March 2018.

The third quarter of the full year to March 31, 2017 saw the Japanese business of Monex generate a net profit of JPY 480 million, on the back of actively trading customers. Trading volumes of stock and FX staged an increase compared to the previous quarter.

Monex’s plans are, of course, of more interest to us. The group stressed that there are two initiatives to expand its customer base in Japan: Monex-Saison-Vanguard Investment Partners’ wrap asset management service, as well as the TradeStation platform for active traders.

Monex notes the the success of the Japanese stock trading platform developed by TradeStation group. The number of funded accounts increased four times, whereas the trading volume increased three times quarter on quarter thanks to the growing popularity of TradeStation and the simplified account opening process.

The plans for the platform involve achieving a trading volume of JPY 800 billion per month and net income of JPY 2.4 billion per year in the medium term.

As TradeStation grows bigger in Japan, we cannot skip mentioning what happened to TradeStation retail FX business in the United States early last year. As you may recall, OANDA Corporation acquired the retail FX accounts of TradeStation in the US in February 2016. In July last year, FinanceFeeds reported that 60 jobs were about to go at TradeStation’s Plantation office.

Today, Monex provided an update regarding its US business too, noting that the revenue excluding the sale of FX business is almost same in the April-December 2016 period as a year earlier. Furthermore, the headcount reduction has contributed to the fall in fixed costs, which, in its turn, has helped Monex’s US business to generate JPY 112 million in net profit in the three months to December 2016.

Regarding Monex’s outlook, the company stated that it expected “improvement of the business environment under the Trump administration”.

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