Internet trading doubles

STOCK MARKET

Internet trading doubles

NUNTAWUN POLKUAMDEE

Internet securities trading more than doubled in 2007, thanks to lower transaction fees and the convenience of electronic trading channels.

Online trades are charged a commission of just 0.15%, well below the 0.25% minimum set for normal trading.

Montree Sornpaisarn, chief executive officer of Kim Eng Securities, said internet and mobile trading has grown rapidly, particularly among young investors comfortable with modern telecommunications technology.

''Internet trading has grown rapidly, as it's the most convenient way to trade. Younger investors also have the skill and familiarity with the technology, and Thailand's telecommunications infrastructure has improved quite a bit over the past few years,'' he said.

''The fact that online trading costs 10 basis points less than traditional channels is another major incentive.''

For Kim Eng, one of the country's largest online brokers, internet trading comprises as much as 12% to 13% of total turnover.

Other major online brokers include BFIT Securities, Asset Plus Securities, Phillip Securities and KTB Securities.

Charnchai Kulthavarakorn, the chief executive officer at KTB Securities, said online trading could grow even faster if the SET allowed commissions to fall further.

Commission fees for both online and traditional trades are set to gradually decline from 2010 and be fully liberalised in 2012.

Mr Charnchai said KTB Securities planned to open 70 cyberbranches this year to help expand its market share and provide contact channels for investors to trade online.

According to the Stock Exchange of Thailand, online trading accounted for 13% of total turnover at the end of November, compared with 6% to 7% at the end of 2006.

Over one-quarter of all individual investors trade online, a proportion more than double than the year before. A total of 30,000 new online trading accounts were registered last year, up 20% from 2006, with 150,000 online accounts active.