Monex Group to introduce wrap accounts, postpone TradeStation launch in Japan

Monex Group to introduce wrap accounts, postpone TradeStation launch in Japan

Japanese forex holding company Monex Group said on Thursday it plans a number of strategies to expand its retail business, including to launch a wrap trading account service to Japanese clients in the beginning of 2016. Also, the planned launch of the TradeStation trading platform in Japan has been postponed and it will be fully introduced by end-August 2016, the company said in its latest financial report.

The joint venture (JV) Monex-Saison-Vanguard Investment Partners (MSVIP), in which Monex Group holds a majority share, will launch in the spring of 2016 wrap accounts, or a small-lot and low-cost discretionary investment management service. The service will be suitable for investors with primarily managed assets with savings. The broker intends to partner with institutional entities, such as banks, investment companies, and stock brokers, which would allow it to expand its exposure and attract new customers.

The new service is expected to increase the amount of assets under the brokerage’s management in the mid and long term.

Wrap accounts are managed by a brokerage for a flat fee, instead of for a percentage of or a commission fee for each trade. As a result, dealers perform trades only when needed in order to increase a client’s account balance.

The MSVIP JV was set up in August 2015 and is based in Tokyo. It serves retail clients.

Meanwhile, the TradeStation platform for equity trading will be introduced to the Japanese market later than expected. Its launch was initially scheduled for the winter of 2016, but has been postponed. The launch will be executed in two stages – in the fiscal year ending March 2016 and in the first half of the following fiscal year.

By adding the TradeStation platform to its offering for Japanese clients, who make up 60% of the group’s revenue, Monex Group aims to increase brokerage commission and the group’s mid-and long-term revenue growth.

The Monex group operates under three retail trading brands – Monex, TradeStateion and Boom. Earlier this month, the group reported its preliminary financial results for the first nine months of fiscal year 2016, ending 31 March this year. Its final results published today show just a slight difference from its preliminary reports. The group’s consolidated net profit went up by an annual 67.5% on the year to more than JPY 3.1 billion in the April-December 2015 period, while its consolidated operating revenue increased more than 15% on the year to JPY 42.9 billion.

The Monex group consists of the Japan-registered holding company Monex Group Inc. and its subsidiaries Monex Inc., Monex Ventures, and TradeStation Corporations, Monex Hambrecht and Monex-Saison-Vanguard Investment Partners, all registered in Japan, as well as TradeStation Group, which is in charge of the group’s operations in North America and Europe, and Monex International Ltd, aka Monex BOOM Group, which is in charge of the Asian market.

Full 60% of the Monex Group’s revenue comes from operations in Japan and 40% – from its US business. The group has a global customer base. In Japan it operates more than 1.6 million customer accounts, while its clients in the US have 68,000 accounts and in Hong Kong – 11,000 accounts.

Source: Monex Group

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