GMO-Z com Securities Thailand is making the leap to become a 100% online brokerage focused on providing margin loans for small and medium-sized investors, with more than 500 stocks for selection.
With a strong capital base from Japan as financial support, the company is also equipped with technological support for product development and maximum service efficiency to meet clients' needs, said chief executive Megumu Motohisa.
The company will begin its new stock trading scheme next Monday. Clients can open an account on its website, or submit their applications in person, said Mr Motohisa.
GMO-Z com Securities Thailand was founded on Nov 28, 2016 with a 100% shareholding by GMO Financial Holdings Japan.
Initially the company will offer online securities trading services for two categories of trading accounts: cash balances and credit balance accounts.
GMO-Z com targets a client base of 10,000-15,000 accounts by 2018, with loan offerings for 600 credit balance accounts, and daily trading value of 1 billion baht, or 0.8% of the total market share.
The company will not provide any investment consultancy to solicit clients and will charge commission fees of 100 baht per 100,000-baht trade, or 0.10%.
The margin loan rate will be charged at 8% per year and the company projects providing margin loans worth 600-700 million baht for the next 12 months, said senior executive vice-president Tien Tanarugsachock.
Mr Tien said the company aims to be a leading online broker within two years and expects margin loan interest to generate sustainable income in the long run apart from securities trading fees.
Kesara Manchusree, president of the Stock Exchange of Thailand, said there are about 1.3 million online trading accounts, or about 90% of total trading accounts, traded on the SET and Market for Alternative Investment.
She said the online trading system has significantly increased in the past 10 years, from 30% to 70% of total retail trading, while retail trading makes up 50-55% of daily average trading.
"Artificial intelligence and technology will have more influence as the new tools for securities trading," said Mrs Kesara.
