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Brokerages to reduce trading fees
Brokerages will soon reduce their trading fees from 0.05 percent to 0.03 percent, the State Securities Commission (SSC) said on June 16 on its website.
The Finance Ministry instituted the reduction late last week, basing their decision on a proposal by the SSC and numerous brokerages which said that such a move would help securities firms to get through the current, rough period in the stock market.
Nguyen Huy Duong, an analyst at Hoa Binh Securities, said: “The fee reduction, if it takes effect, will help brokerages attract more investors. This in turn could improve both the volume and value of trading”.
However, he added that the impact from this reduction would be tiny in comparison to other factors that could help prop up the market. “At the same time, tiny pieces can add up to a bigger thing,” Duong said.
Earlier this year when the stock market saw a sharp downturn, securities firms independently reduced their trading fees in an attempt to lure more clients but were largely unsuccessful.
“For the last few days, everything at the stock exchange has begun to look brighter. This reduction won’t help much as far as luring more clients to securities firms because traders are already coming back on their own,” said Nguyen Tien Dung, an independent analyst.
“However, it will generate profits for the firms when the market warms up again, which should help them upgrade services in the future,” he noted.
VNA
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