Mobile stock trading in the new era. Who will win? Who will lose? (Chinese)
Financial ecosystem changes, low commissions attract customers, easy stock trading on mobile devices.
Exclusive report: @Jungle lee
The new era of buying stocks on mobile phones is reshaping the market with a disruptive fee model.
In the stock trading market, traditional platforms have high transaction fees, which are gradually being replaced by low-cost or even zero-cost new models. This not only reduces the investment threshold but also attracts more novice investors to join.
Global investment platforms are emerging like mushrooms after rain, providing unprecedented investment opportunities. Whether in the stock market or other financial products, investors can trade anytime, anywhere.
Moreover, the financial ecosystem that emphasizes seamless connectivity has greatly changed investment behavior and habits.
Readers, please follow the footsteps of the Nanyang Business Daily to explore how the new era provides convenience and how to choose among many offers.
Technological innovation, revolutionary changes in trading
Comparison of buying stock platforms
Comparison of buying stock platforms
In recent years, with the rapid advancement of technology, mobile stock trading platforms have also quickly emerged, changing the traditional stock trading mode.
These platforms are not only convenient and fast, but also attract a large number of investors to follow due to their unique features and advantages.
It is worth noting that this is not only a major technological innovation, but also a financial trading revolution. In the era of information explosion, mastering more financial knowledge has become one of the key elements for investors to achieve success.
The Nanyang Siang Pau will explore, analyze, and compare several emerging platforms - Rakuten Trade, Moomoo Malaysia, Webull Malaysia, presenting readers with a comprehensive picture of the competitive landscape of mobile stock trading platforms to help investors better choose a platform that suits them. $Rakuten Group (4755.JP)$ Moomoo Malaysia $Futu Holdings Ltd (FUTU.US)$ / @Moomoo MYWhich one will be your favorite now?
It is worth noting that this is not only a major technological innovation, but also a financial trading revolution. In the era of information explosion, mastering more financial knowledge has become one of the key elements for investors to achieve success.
Over 0.3 million users in six months
Moomoo sets the benchmark for brokers
Moomoo sets the benchmark for brokers
In a vibrant and transformative market, investors face unprecedented opportunities and challenges.
The convenience of buying stocks on mobile phones allows more people to participate in the financial market, but at the same time, it requires investors to have higher self-learning ability and risk management awareness.
Facing a wide range of investment options, how to make the right choices has become a mandatory course for every investor. The new technologies not only bring convenience, but also subvert traditional investment concepts.
In an interview with Nanyang Business, the CEO of Moomoo Malaysia, Mo Ganlian, said that since its launch in February this year, Moomoo has achieved remarkable success, becoming the most downloaded investment application in the country with over 0.3 million users.
He pointed out that the platform was also selected by readers as the "most promising digital investment platform" at this year's PC.com Awards Ceremony, and after receiving the award, the platform is committed to improving the standards of Malaysian brokers through technology and driving the evolution of the financial ecosystem.
Market Environment and Competition
Moomoo pointed out that with rich experience and technical expertise in markets such as Singapore and Hong Kong, it can replicate and introduce into Malaysia. At the same time, by introducing healthy competition, it hopes to provide an unparalleled and create a more vibrant and inclusive financial environment.
"Moomoo has a certain experience in markets such as the USA, Hong Kong, Australia, Japan, Canada, and Singapore, which also proves the company's ability to provide innovative solutions and drive rapid growth. We plan to replicate this successful model into the Malaysian market."
"We use cutting-edge technology to bridge the information gap, providing free access to real-time market quotes, corporate announcements, as well as live events with CEOs and financial experts."
He noted that through various activities and strategies, it helps to increase investment participation, market ecological growth and maturity, and improve market liquidity, which is consistent with the vision of the Malaysian stock exchange and other government agencies.
He pointed out that Moomoo's mission in Malaysia is not just to compete for market share, but to expand the entire investment ecosystem, and through prioritizing excellent user experience, competitive pricing, unparalleled customer service, and rich educational resources, to empower the next generation of investors.
Moomoo's platform also provides over 700 investment education courses, ranging from basic investment principles for beginners to experienced and complex market analysis, in order to promote financial literacy and cultivate a knowledgeable investment community.
Comprehensive resources help create wealth, and financial participation is democratized.
Moomoo platform is not only a trading and investment channel, but also a comprehensive resource that helps new investors achieve financial success.
Through accessibility, education and innovation, the goal is to democratize financial participation and ensure that everyone can utilize the financial market to create wealth.
"Our active community, 'Moo Community,' has over 22 million investors worldwide, reflecting the company's commitment to combining technology and community."
He pointed out that the platform not only provides free real-time market data and analysis tools, which bring significant advantages to users of all experience levels, but also provides advanced analysis tools such as stock screeners and market monitors to help investors identify investment strategies and identify emerging opportunities and potential risks.
Of course, the platform also supports multi-currency trading, offering a variety of currency trading options including USD and SGD, allowing users to diversify their investment portfolios, hedge currency risks, and seize investment opportunities in global markets.
In terms of security and stability, he stated that Moomoo has obtained the Capital Markets Services License issued by the Securities Commission of Malaysia (SC), and also complies with Anti-Money Laundering (AML) measures and regulatory standards.
Ensuring user privacy.
We use technology to simplify compliance procedures and ensure the security and privacy of user information. At the same time, we implement segregated accounts to separate customer funds from company operating funds, providing an additional layer of protection. In the event of platform fund issues, investors can claim up to 0.1 million Ringgit from the capital market compensation fund.
He concluded that Moomoo was able to achieve significant success in Malaysia in a short period of time due to technological innovation, user experience, and emphasis on market education.
We will continue to promote the development of the Malaysian financial ecosystem to ensure that every investor can enjoy a fair and transparent investment environment. Through continuous improvement of services and technology, Moomoo is confident in achieving greater success in the Malaysian market.
Webull makes investing enjoyable and trustworthy for a lifetime
With the continuous advancement of technology and the changing market demands, there will be more investment methods in the future, incorporating more tools and automation.
The application of technologies such as artificial intelligence and big data analysis will provide investors with more accurate investment advice and more effective risk control methods.
In this wave of financial technology, those who can adapt to changes quickly will stand out in the intense market competition.
According to an interview with Webull CEO 曾洋幸 by 《南洋商报》, Webull has become one of the most popular online investment platforms in Malaysia since entering the market in May this year, with over 40 million downloads worldwide.
He said that the company's ultimate goal is to provide a pleasant and trustworthy investment experience for lifelong investors in Malaysia and globally, while also offering diverse products and asset categories to meet market demands.
He emphasized that this strategy has been well received among Malaysian investors, winning wide acceptance and positive feedback, while the company continues to steadily grow its market share.
Market Performance and Competitive Environment
曾洋幸 mentioned that individual retail investors in Malaysia are generally vibrant, with many actively seeking diversified investment opportunities to achieve long-term financial goals.
He pointed out that, according to data from Bursa Malaysia, the participation rate of retail investors is around 30%. Although this is comparable to the participation rate of retail markets in other regions, there is still significant room for growth.
He pointed out that, according to data from Bursa Malaysia, the participation rate of retail investors is around 30%. Although this is comparable to the participation rate of retail markets in other regions, there is still significant room for growth.
"The potential of the Malaysian market, combined with the trend of self-directed investing, has led people to try new investment tools, which makes digital investment platforms like Webull highly attractive. We believe that the Malaysian market is large enough for us to coexist with other platforms and create value."
Webull operates in 15 countries and regions globally and is the second largest online brokerage platform in the United States. Competitive incentives have forced the company to continuously provide the best products and services.
With the growth of the Malaysian market demand, digital investment platforms are introducing more investment tools, innovations, and improved services, and retail investors will benefit from a diverse range of investment opportunities.
Lowering the entry threshold to the market.
Zeng Yangxiang expressed that Webull's infrastructure is highly automated and technologically supported, designed for digital innovation, especially for young investors.
Webull promotes a simple interface, clear trading screen, and user-friendly features, allowing new users to adapt quickly.
A seamless and consistent experience on the Webull app is particularly important for young investors seeking convenience, where new investors using the platform can enjoy the convenience of automatically setting up securities and derivatives accounts.
"We are taking multiple measures to significantly lower the entry barrier for retail investors to enter the market, encouraging more people from different backgrounds, especially young people, to build long-term savings through investments and make wise decisions. These measures include a learning resource center, zero platform fees, competitive brokerage fees, and a minimum $5 trading fee for U.S. stocks."
In addition, Webull also emphasizes investor education, rooted in the concept of "learn, share, invest". Webull provides investment education resources and tools, and investors can access a variety of investment education resources and tools, including explanations of investment terms, best practices, operation guides, and on-demand tutorials.
Emphasize safety and stability.
Not only that, investors who want to practice trading skills and simulate strategies can also use the platform's papertrade feature to buy and sell without involving real funds.
In addition, the Webull platform is full of unique Malaysian characteristics, including all resources and tools that support English and Malay, and also covers investment models that comply with Islamic teachings. Compliance with regulated U.S. stocks will be identified with a purple crescent moon icon.
Yangxiang pointed out that Webull holds the securities trading and derivatives trading capital market service licenses issued by the China Securities Regulatory Commission.
"We are committed to providing a seamless, safe, and enjoyable trading experience, and using intelligent solutions to protect the platform from cybersecurity threats."
"We also implement multi-factor authentication to enhance access security, and use data encryption to always protect sensitive data."
He summarized that Webull has made significant achievements in a short period due to technological innovation, user experience, and market education.
Looking to the future, Webull will continue to drive the development of Malaysia's financial ecosystem, ensuring that every investor can enjoy a fair and transparent investment environment.
Through continuous improvement of services and technology, we are confident in achieving greater success in the Malaysian market.
Upgraded technology, professional consulting, diversified operations. Stock brokerage is struggling to survive.
In the era of informatization and digitization, buying stocks on mobile phones is quickly emerging as a new trend. With the popularity of mobile devices and advances in technology, more and more investors choose to buy and sell stocks on their phones, enjoying convenient operations and low fees.
Therefore, traditional stock brokerage faces unprecedented challenges!
The stock brokerage industry was once dominant in the financial market, but now the market is changing rapidly, and their position is increasingly marginalized. Coupled with relatively high commissions and cumbersome processes, more and more investors are turning to mobile platforms.
The Nanyang Siang Pau explores the rise of mobile stock trading platforms and reveals the plight of the traditional stock brokerage industry with shrinking profit margins.
We will also discuss how traditional stock brokerages can maintain their competitiveness in the new era through technological upgrades, service innovation, and diversified operations.
Will they be able to find a new path to survival in the new era of mobile stock trading?
The rise of mobile trading platforms completely revolutionizes the way stocks are traded. In the past, investors had to place orders through traditional stock brokers and wait for confirmation, which not only took time and effort but also incurred high commissions.
Today, buying stocks with a mobile phone allows investors to trade anytime, anywhere, with ease of operation and low costs. Investors only need to download a mobile application to view real-time stock market quotes, place orders, and buy or sell stocks, all of which can be easily done on a mobile phone.
This convenience and low cost have attracted a large number of new investors, especially the younger generation.
Stock brokers have played an important role in the financial markets, not only helping clients buy and sell stocks, but also providing professional investment advice and market analysis.
However, with the popularization of mobile trading platforms, the role of traditional stock brokers is becoming increasingly marginalized.
Although some high net worth clients and institutional investors still rely on brokers for their expertise and networks, most ordinary investors have turned to more convenient mobile trading platforms.
Taking stock of the pros and cons, the advantages of mobile trading platforms are obvious: convenience, low costs, and transparency of information.
However, these platforms also have some disadvantages, the most crucial of which is the lack of professional guidance, making it easy for investors to make mistakes due to lack of experience.
Secondly, excessive reliance on technology will pose a certain degree of threat to the security of investors' assets once the platform experiences malfunctions or suffers from network attacks.
In contrast, traditional brokers can provide personalized services and risk management advice, but high commissions and complex processes discourage many investors.
Adapting to the trend of technology.
Maybank Investment Bank breaks through conventions and undergoes a rebirth.
Maybank. $MAYBANK (1155.MY)$ As a leader in the Malaysian banking industry, its investment bank and brokerage transformation have attracted much attention.
Maybank's Head of Investment Bank Agency and Chief Operating Officer, Tunku Alif Azzahar, pointed out that the bank launched its first trading application as early as 2018 to fill the gap in online trading platforms and brokerage networks.
In 2022, the bank commissioned market research firm Kantar to collect user needs and launched the new Maybank Trade MY digital application in April 2024.
He mentioned that the application provides intuitive and customizable dashboards and watchlists, integrates highly demanded technical charting tools for investors, and internal research reports, enabling users to access real-time market information at their fingertips.
Data reflects trends
Donggubarif Azzah pointed out that in order to better understand customer needs, the bank is continuously studying user investment behavior and participation, while also actively enhancing interaction.
Just last year, Maybank Investment Bank won the most new account openings in retail investment activities on Bursa Malaysia.
As of June 2024, the online account opening rate of Maybank has increased by 50% year-on-year, thanks to continuous improvements, and the effectiveness brought by the newly launched Maybank Trade MY application.
He pointed out that in order to enable customers to make informed investment decisions and gain knowledge, the bank shares industry trends and concise content on the Telegram channel - Trade with Maybank, and streamlines the investment process through webinars, significantly driving online client transactions, with a 253% year-on-year increase in total trading value in June this year.
Of course, in response to the competition in mobile trading platforms, he pointed out that the Maybank Trade MY application has added several innovative features, including customizable dashboards, watchlists, price alerts, TradingView charting tools, and easy access to award-winning research insights.
"These features help customers make wiser decisions while capturing trading opportunities.
Balancing traditional and mobile channels.
As a comprehensive service brokerage, Mr. Dang Gu Ali Fu Azzah pointed out that the bank provides integrated trading solutions for different customer cohorts, including seamless integration of mobile and web trading, advisory, research, corporate access, customized structured products, and stock margin facilities.
He noted that the app caters to both beginners and experienced traders, offering user-friendly interfaces and educational resources, as well as advanced technical analysis tools for experienced traders.
In addition, through an extensive branch network and a dedicated investment banking team, the bank provides diverse touch points to meet the needs of customers at different levels.
He pointed out that the widespread adoption of mobile platforms does pose challenges to traditional brokerages, but it also brings opportunities.
"We recognize the importance of personalized services and are committed to investing heavily in technology and data analytics to maintain agility and adaptability."
As Malaysia's largest bank, Maybank has a large customer base and high digital penetration, which indeed provides a significant advantage through continuous enhancement of digital services.
The bank is focused on providing a seamless, secure, and smart investment experience. According to the Kantar survey results, the bank has released tutorial videos to help users make full use of the application and integrate the account opening process into the MAE application.
69% of the respondents stated that they value technical charting tools, which we have integrated into the application and plan to gradually introduce global trading and other features. Our goal is to incorporate easy investing so that more people can invest and increase their wealth.
Adapting to the new normal.
Providing personalized services.
A representative from Malacca Securities mentioned that as a local award-winning stock brokerage firm, they have been committed to guiding Malaysian investors towards success.
Starting as a small brokerage firm, they have gradually entered the digital stock brokerage field and launched the online trading platform M+ Online, allowing investors to easily trade in the Malaysian stock market.
Last year, they further expanded their services and launched M+ Global, expanding the trading scope to the US and Hong Kong markets. Recently, they integrated M+ Online with M+ Global to create a comprehensive trading platform, allowing Malaysian investors to seamlessly trade in multiple markets.
In order to compete with mobile trading platforms, Malacca Securities continuously optimizes its services and introduces innovative features.
Among them, M+ Global has added the Bursa eIPO subscription function, allowing people to easily participate in the Malaysian stock market's initial public offerings (IPOs). According to data, this feature has achieved significant success after launching the Hong Kong IPO subscription service in September 2023.
We have also launched conditional trading, providing unprecedented control and precision over trading orders. Additionally, the built-in live streaming feature provides users with educational content, market insights, and trend analysis. To enhance trading capabilities, we have also introduced advanced tools and a desktop trading platform.
In addition to digital initiatives, Malacca Securities strives to maintain a competitive advantage through a hybrid model, with over 200 licensed trading representatives providing personalized services and round-the-clock support to meet specific customer needs.
The bank pointed out that timely communication enables real-time market guidance and solutions, providing personalized service. The combination of online and offline services offers a more comprehensive and satisfactory trading experience for Malaysian investors.
Facing challenges
However, with the rise of mobile trading platforms, traditional brokers face new challenges as mobile platforms provide seamless user experience and real-time market tools, putting traditional brokers at a disadvantage in terms of technology and resources.
To address these challenges, Malacca Securities focuses on simplifying investment services and providing a first-class investment experience and innovative trading solutions.
The bank stated that as one of the market participants, Malacca Securities is also committed to setting new industry standards and creating more value for customers. This includes collaborating with industry analysts and launching the Bursa IPO "target price" function to help investors better understand the market.
With over 60 years of industry experience and close connections with clients, Malacca Securities will continue to collect feedback and improve services to ensure a competitive edge in a rapidly changing market.
"Through innovation and diversified services, we will continue to move forward in the intense market competition, while also committed to providing the best investment experience for our clients."
Young investors are hard to find.
Relying on old clients for support
As a frequent commentator on various topics for Nanyang Siang Pau, and a senior stockbroker, Lu Wenhao pointed out in an interview that after 30 years in the brokerage industry, the rise of new trading platforms has indeed brought significant impact to traditional brokers.
He expressed that whether it is a traditional or a new platform, they both face individual investors. However, the way new platforms aggressively attract business by offering free commissions or platform systems is the same – aggressively attracting clients.
"This move indeed led many of our users to switch to the new platform, and new platforms cannot afford to do unprofitable business. Offering zero commission is only to encourage individual investors to trade more and make money on exchange rates or in other areas."
He stated that with individual investors each making their own decisions and no longer relying on traditional brokers, there is indeed a significantly increased risk, as they are more likely to follow market trends or rely on self-confidence, believing they can stand tall in the market and create a niche for themselves.
"I want to emphasize that if investors can achieve success through their own learning or thorough research on specific stocks without the help of traditional brokers, then zero commission is just right because it can really save a lot."
"However, the reality is cruel. Even experienced traders make mistakes when trading, let alone when encountering a bear market. Young investors have no idea how to deal with it, which is why there are many situations of losses, eventually leading to staying away from trading."
He pointed out that the rise of emerging trading platforms is inseparable from the strong promotion of the stock exchange, because it can significantly increase trading volume and market liquidity. However, whether it can become a long-term solution still remains to be seen.
Improving service is the key to retaining customers.
Lu Wenhao said that traditional brokers now need to work harder to retain customers, including improving service quality, providing more value and added benefits, giving advice to enhance users' investment interest, and helping users reduce risks.
He said that there are actually other options now, such as buying and selling through the trading information and insights provided by their own brokers, and then buying and selling through the corresponding platform to reduce delays.
"As traditional brokers in the stock market, we not only have certain experience and knowledge, but we can also build bridges to understand specific companies and narrow the information gap between users."
"In addition, we should also provide more accurate trading knowledge, because this not only indirectly encourages investors to make money, but also helps to increase our own income, achieving a win-win situation. Traditional brokers aim for long-term cooperative trading."
In addition to providing valuable advice, traditional brokers also identify buying and selling opportunities through charts and can push the latest company trends to clients, such as recommended bonus issues or restructurings, enabling clients to react in real time.
He regretfully pointed out that currently the difficulty lies in the fact that although he has given buying and selling signals, his clients have only made small purchases in their own accounts, but turned around and made big purchases on emerging platforms due to zero commissions, resulting in a significant decrease in his commissions. It's a pity.
"All I can say is that the investors who are still receiving services now are all over 40 years old and basically don't have many young retail investors on hand. In addition to the difficulty of attracting young customers, they may also not have much spare money, so they prefer to make quick trades. "
He said that investment banks do provide a series of strategies and help to their affiliated brokers to attract young customers to use traditional platforms. However, nowadays things are different and there is a gap. Few young people choose to become brokers because it is difficult to make money.
"Of course, there are still some young brokers who have good performance, maybe they use different types of strategies to attract clients, but the commissions will no longer be as lucrative as before."
"The Malaysian Exchange (MYX) may also think that traditional brokers have not increased trading volume, so they are focusing most of their attention on emerging platforms. As for what I can do, it is to continue to provide services to existing clients. As for whether I can attract young investors, I don't have high expectations."
MYX's stroke of genius allows brokerage firms to coexist with emerging platforms.
As one of the largest stock exchanges in ASEAN, the Malaysia Exchange (MYX) $BURSA (1818.MY)$ @Bursa MalaysiaPlaying an important intermediary role in the era of buying stocks on emerging mobile phones.
It not only provides comprehensive trading-related services, but also needs to strive to balance the demand for buying stocks on both traditional and emerging platforms in this rapidly changing financial environment.
How will the M Exchange view the trend of the rise of mobile stock trading platforms? In the era of information explosion, as an intermediary institution, how should the exchange wield its magic wand to maintain market stability and support innovation development while facing the rise of mobile stock trading platforms?
Furthermore, how should the exchange introduce innovative services or policies to support mobile stock trading? How to ensure that trades have enough security and stability to address the various challenges brought by mobile stock trading?
M Exchange accepts an exclusive interview with Nanyang Business Newspaper to answer these difficult questions one by one.
In this constantly changing financial world, combined with the rapid development of technology, the way of participating in stock market trading has undergone fundamental changes.
We are witnessing the rise of a new generation, that is the widespread popularity of mobile trading applications.
Traditional stock brokers and platforms are facing unprecedented challenges. Will they be able to survive under these new rules of the game? All of this is worth pondering.
During an interview with the Nanyang Business Daily, the Singapore Exchange pointed out that the rise of mobile platform trading is not just a simple trend, but a catalyst for the growth of the entire industry.
This has not only sparked financial market innovation, but also increased the accessibility of retail investors in the market and improved the participation in the capital markets.
According to statistical data, the number of online trades had been steadily increasing even before the pandemic. During the COVID-19 pandemic, home confinement and movement control orders further accelerated the growth of online trading.
Despite transitioning into the post-pandemic era, this shift has not slowed down. The proportion of online trades has soared from 30.5% in 2017 to 47.7% in the first quarter of 2024. This not only demonstrates the significant growth advantage of online trading, but also indicates a major shift in investor behavior.
Online trading refers to customers inputting trade orders through websites and mobile applications, while offline trading refers to customers placing orders through broker representatives (DR) or brokers.
Surge in Retail Online Trading
The Singapore Exchange pointed out that with the extension of more and more investment themes, there is a noticeable increase in retail online trading. The percentage of retail online trading rose from 79% for the entire year of 2023 to 82% in the first quarter of this year.
In addition, based on the data for the first half of this year, the average daily trade value and volume reached 32.07 billion ringgit and 4.57 billion shares, representing an increase of 58.7% and 40.2% respectively, compared to 2023.
This growth is due to the bullish market for artificial intelligence and data centers, attracting a large number of domestic and foreign investors' attention.
The Malaysia Exchange points out that with the rise of young investors and the wide application of technology, it is believed that this trend will continue to develop in the next few years and further reshape the market structure.
In addition, Generation Z and Millennials are more willing to explore new trading methods, generally more accepting of online trading platforms, and prefer digital solutions.
According to data, the age group of 18 to 45 contributes approximately 29.65% to the total trading volume, and with the wealth transfer in the next 10 years, it is believed that young investors will become the main beneficiaries.
The Malaysia Exchange's innovative initiatives
Embracing the rise of mobile trading
In the wave of mobile trading era, the Malaysia Exchange is also actively responding by launching a series of innovative services and policies to support the flourishing development of mobile trading.
"Bursa Gold Dinar" is one of the important innovations, providing investors with a low-threshold gold investment opportunity. Since its launch in January 2024, more than 1,000 accounts have been registered.
In addition, the Malaysian Exchange is also exploring expanding its securities coverage through digital platforms such as electronic wallets, in collaboration with TNG Digital, to attract more investors.
Furthermore, in order to enhance market literacy and participation, the Malaysian Exchange has launched MyBURSA, a one-stop investment website that provides comprehensive knowledge and tools to help investors make more informed investment decisions.
These initiatives not only promote the digital transformation of the market but also provide investors with a diversified range of choices.
Supporting the transformation of traditional platforms.
With the rapid development of mobile trading, how can traditional brokerage firms maintain competitiveness in this new era?
The M Exchange responded that it has indeed launched multiple measures to help traditional investment banks achieve digital transformation, so as to continue to survive and develop in the new environment.
Firstly, by using application programming interfaces (APIs), the market participation process for investors is greatly simplified, resulting in an enhanced customer experience.
The Malaysian Exchange states that by enhancing relevant technologies, traditional brokerage firms can significantly reduce account opening time, facilitate faster account updates and reactivation, allowing investors to enjoy fast and convenient access and seize market opportunities in a timely manner.
Furthermore, Bursa Malaysia also launched the Bursa REACH platform, which provides a digital showcase platform for investment banks and broker representatives to better interact with investors.
This not only helps brokerage investment banks enhance and build closer relationships with clients, but also enables investors to conveniently access professional advice and services.
In addition, there is the Bursa Academy, Bursa Marketplace, and the Mirror, Learn and Trade (MLT) tools, which create interactive educational tools for beginners and provide direct access to licensed and skilled research analysts to share their real-time strategies and knowledge of managing stock portfolios.
The market share of the top 4 listed brokerages is 12%.
Moreover, traditional brokerages can still maintain market competitiveness in the face of challenges from emerging trading through their own characteristics and service advantages.
Bursa Malaysia stated that in the first half of 2024, the total market value of the 4 listed stock brokerage companies in Malaysia exceeded 2.2 billion ringgit, accounting for a 12% market share of the total transaction volume.
These data indicate that despite the impact of emerging trading methods, traditional platforms can still find opportunities for survival and development in competition.
Currently, there are independent listing investment banks such as Kenanga. $KENANGA (6483.MY)$ Hugang Holdings $M&A (7082.MY)$ Dingfeng $APEX (5088.MY)$ and Mercury Securities $MERSEC (0285.MY)$
Ensure the continued health of the financial ecosystem
Balancing traditional and emerging channels
The Hong Kong Exchange (HKEx) has pointed out that it is still committed to balancing the treatment of traditional investment channels and emerging mobile trading platforms to ensure the health of the financial ecosystem.
At this stage, most traditional stock trading channels have transitioned to a hybrid approach, maintaining physical services while also providing online trading through technology.
The exchange stated that in the market, retail investors have various needs, with some preferring high-touch or personalized services. Traditional brokerages, by offering unique personalized services, help to form a cohesive ecosystem, and through healthy competition, benefit retail investors, thereby driving the quality of service and technological advancement.
In the long run, this will benefit all investors, as both traditional brokerages and emerging investment platforms can provide customer-centric investment products and solutions.
Various signs indicate that by promoting healthy competition between traditional brokers and emerging platforms, the exchange has successfully enhanced overall service quality and technological advancement, creating a healthier and more vibrant environment for the market.
Complementary Partnerships.
In this ecosystem, traditional brokers and emerging platforms are not antagonistic entities but complementary partners that can mutually supplement and develop together.
Furthermore, as early as 2023, the exchange conducted a survey of 3,000 investors, which revealed that when choosing platforms, retail investors prioritize long-term benefits over one-time marketing gains.
Among the three key factors in selecting investment platforms, including cost-effectiveness, usability, and credibility, 35% of investors mentioned utilizing technological conveniences such as AI tools, siasun robot&automation advisory platforms, and mirror trading tools to make investment decisions.
This trend indicates that investors are moving towards automated and data-driven investment solutions, where these methods leverage technology to achieve more efficient and informed decisions.
Traditional brokerage embraces multiple strategies
Huang Xunli: Changes lead to opportunities, and opportunities lead to longevity
Huang Xunli, Chairman of the Malaysian Stockbrokers Association, stated in an interview with Nanyang Siang Pau that traditional brokerages are adopting various strategies and innovative measures to cope with the increasingly popular trend of mobile stock trading platforms, while incorporating the essence of 'Changes lead to opportunities, and opportunities lead to longevity'.
He mentioned that many traditional brokerages have developed feature-rich mobile trading applications, allowing investors to trade and manage their portfolios anytime and anywhere.
In addition to providing user-friendly interfaces and fast trade execution, traditional brokers also utilize big data and artificial intelligence technology to provide real-time market analysis and personalized investment advice, enhancing user trading experience and decision-making capabilities.
However, despite these strategies and innovative measures giving traditional brokerages a certain advantage in the competition on mobile stock trading platforms, there are also hidden concerns.
Do not overlook the hidden concerns of zero commission
Huang Xunli pointed out that with the popularization of AI, mobile stock trading tools have become essential tools. Although it seems to enhance the personal competitive advantage in trading on the surface, the social costs behind it cannot be ignored.
Among them, zero-commission payment platforms may lead to small investors being engulfed by large capital, creating a one-sided and unequal situation.
Huang Xunli explained that the zero-commission strategy seems to reduce trading costs and attract a large number of users, but it actually causes potential harm to the entire industry and the national economic interests.
He cited the example that he had the opportunity to visit several stock investment banks or branches in Fuzhou, China before. It is not difficult to find that due to the emergence of zero-commission, brokerage income has been greatly reduced, coupled with stricter regulations, resulting in low morale among employees and a decline in business.
"This zero-commission strategy not only causes fatal flaws in the brokerage industry, but also invisibly harms the national economic interests."
He said that the rise of mobile trading platforms does attract more young and novice investors, greatly increasing trading volume and market liquidity. However, do not forget that the launch of the market is to create investment value.
Mobile trading brings convenience, but there is still a lack of knowledge dissemination, which allows some speculative behaviors to take advantage and thus form social and economic problems, affecting the development of mutual benefit and sustainable economy.
He believes that governments and stakeholders, in promoting policies, should not have a short-sighted mindset and unbalanced support for zero-commission platforms, which may cause exchanges to lose their fundamental value and become a center for shearing leeks.
Huang Xunli pointed out that although buying stocks through mobile phones is a general trend, ignoring the double-edged sword of zero commissions poses great challenges to the stable operation and economic benefits of the financial ecosystem.
He emphasized that zero commission is no longer a concern of the stock brokerage association, but it is still necessary to pay high attention to its destruction of the stability of the stock price of listed companies and catering to speculative risks.
In general, traditional brokerages need to continuously incorporate innovative factors and optimize services to adapt to market changes and customer needs when dealing with the rise of mobile stock trading platforms.
However, government policies must maintain a balance to ensure the sustainable and stable operation of the financial ecosystem and bring benefits to the economy.
Conclusion: Reshaping the stock market landscape.
The rise of mobile trading platforms undoubtedly reshapes the landscape of the stock market.
For investors who can adapt quickly and seize opportunities, mobile trading is a huge opportunity; however, those who still rely on traditional methods or traditional brokers face severe challenges.
In this new era of mobile stock trading, who can win this game and who will be eliminated? The answer may gradually emerge in this process of digital revolution.
No matter which platform you choose, investors should always remember the 7-2-1 rule: 70% of investors will lose to the market, 20% will break even with the market, and only 10% will be able to outperform the market in the long run.
Only by standing firm in that 20% or even 10% can you truly become a big winner.
Source of information: Nanyang Business Daily
Disclaimer: This content is for reference and educational purposes only and does not constitute any specific investment, investment strategy, or endorsement. Readers should assume any risk and responsibility caused by relying on this content. Before making any investment decisions, please conduct your own independent research and evaluation, and consult professionals if necessary. The author and related participants are not responsible for any loss or damage caused by the use or reliance on the information contained in this article.
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《南洋商报》创立于1923年，是马来西亚历史最悠久的中文报纸之一。以财经及商业新闻为主，是商家与投资者必备的新闻资讯平台。
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