Monex to Launch Zero Commissions for Buying Odd-lot Shares
Fazzaco learned that Monex Inc., a Japanese online trading company, announced that it will make trading commissions for buying odd-lot share of Japanese stocks free of charge, effective July 5, 2021.
Odd-lot trading is a service that enables the trading of almost all Japanese shares from one share. Conventionally, a minimum purchase of 100 shares was required to trade Japanese company shares. This required a large amount of capital, but with odd-lot trading, investors can begin investing with as little as 1/100th the capital.
In 2019, Monex launched ferci, an easy-to-use smartphone investing app where users can exchange information with other investors using SNS-type word-of-mouth feature and trade stocks in units as small as one share. Approximately 80% of transactions using ferci are odd-lot trades, indicating the growing need for services that allow small-sum asset management.
To respond to this, Monex decided to make purchasing commissions for odd-lot trades free of charge in the hopes to facilitate stock trading, especially among people considering asset management for the first time.
Fazzaco recently reported that Monex will enter the J-Credit trading market. This is the first time for a major online securities company in Japan to enter the J-Credit trading market. With its entry into the J-Credit Trading Market, Monex is better positioned to respond to the ESG financial needs of its investors and contribute to the resolution of environmental issues, one of the largest pillars of ESG targets.
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