Asian daytrading makes a comeback

Discussion in 'Economics' started by BlueHorseshoe, Feb 18, 2006.

  1. Most Asian exchanges have high retail daytrader component, with Korea and Thailand being especially high.

    Here is another article that gives names of web discount brokers, the ones I have tried to follow up on don't have English websites, if anyone is trading Japanese stocks with an English language friendly broker with discount commissions please post.

    By Matthew Saltmarsh International Herald Tribune

    THURSDAY, JANUARY 19, 2006


    The recent rise in the ease and affordability of equity trading in Japan contributed to the surge in stock prices last year, but it also appeared to have played a role on Wednesday in the sharp decline in Tokyo equities.

    In a repeat of the U.S. experience during the dot-com boom of the late 1990s, investors have flocked to the Web as Internet transactions bring low-cost trading to the masses.

    The recent rise of broadband-powered day trading has accompanied a recovery in the economy after a protracted downturn and a big rise in the Nikkei last year.


    The leading Internet trading company is Monex, which merged last year with Nikko Beans, another online broker, creating a company with almost 400,000 accounts and assets of $12.3 billion.

    Other Internet brokers have thrived, including E*Trade Japan, which is a unit of Softbank; Rakuten Securities; and Matsui Securities.

    The effect of competition on profit margins has already led some firms to pull out of the market, including the U.S. discount broker Charles Schwab.

    In contrast with the United States, much of the online securities trading in Japan is conducted by individual investors who tap in their orders via cellphone. The low-cost firms are competing with more traditional full-service brokerage houses like Nomura, Daiwa Securities and Nikko Cordial, which offer PC-based trading services to retail clients. None of the big brokerage houses provide the deep discounts of the purely online brokers.

    The exchange's problem on Wednesday appeared to have stemmed at least partly from a failure to increase transaction-handling capacity in line with the rise in day trading, as evidenced by the exchange's request that investors consolidate orders as much as possible to avoid further trading halts.

    "In Japan, all the exchanges have very limited experience regarding online trading," Junichi Saeki, a research vice president at IDC in Tokyo, told the technology publication Computer Partner on Wednesday. "In the U.S. market they have more than five years of experience, so similar types of issues have been dealt with. In Japan it's just in the last year that online trading has been popular."

    In a research note to investors, analysts at Nomura Securities in Tokyo said the situation did not present a systemic problem. It said that rules relating to trading companies and capital markets might even become more transparent as a result of the shutdown on Wednesday and that "there could even be a positive impact on the Japanese stock market in the long term."

    The recent rise in the ease and affordability of equity trading in Japan contributed to the surge in stock prices last year, but it also appeared to have played a role on Wednesday in the sharp decline in Tokyo equities.

    In a repeat of the U.S. experience during the dot-com boom of the late 1990s, investors have flocked to the Web as Internet transactions bring low-cost trading to the masses.

    The recent rise of broadband-powered day trading has accompanied a recovery in the economy after a protracted downturn and a big rise in the Nikkei last year.


    The leading Internet trading company is Monex, which merged last year with Nikko Beans, another online broker, creating a company with almost 400,000 accounts and assets of $12.3 billion.

    Other Internet brokers have thrived, including E*Trade Japan, which is a unit of Softbank; Rakuten Securities; and Matsui Securities.

    The effect of competition on profit margins has already led some firms to pull out of the market, including the U.S. discount broker Charles Schwab.

    In contrast with the United States, much of the online securities trading in Japan is conducted by individual investors who tap in their orders via cellphone. The low-cost firms are competing with more traditional full-service brokerage houses like Nomura, Daiwa Securities and Nikko Cordial, which offer PC-based trading services to retail clients. None of the big brokerage houses provide the deep discounts of the purely online brokers.

    The exchange's problem on Wednesday appeared to have stemmed at least partly from a failure to increase transaction-handling capacity in line with the rise in day trading, as evidenced by the exchange's request that investors consolidate orders as much as possible to avoid further trading halts.

    "In Japan, all the exchanges have very limited experience regarding online trading," Junichi Saeki, a research vice president at IDC in Tokyo, told the technology publication Computer Partner on Wednesday. "In the U.S. market they have more than five years of experience, so similar types of issues have been dealt with. In Japan it's just in the last year that online trading has been popular."

    In a research note to investors, analysts at Nomura Securities in Tokyo said the situation did not present a systemic problem. It said that rules relating to trading companies and capital markets might even become more transparent as a result of the shutdown on Wednesday and that "there could even be a positive impact on the Japanese stock market in the long term."
     
  2. trader99

    trader99

    I'm telling you. These are the signs of a new bull market. Not a topping. I'll stand by my Nikkei 25,000 thread.

    hehe
     
  3. yeah sgx, lovely contract...reminds me of the dow in the late 90s...volatilty easy to predict, no noise and huge intraday ranges: sgx also reacts to TA as no other product. worth specialising on trading it, that's for sure.
     
  4. mizer

    mizer

    Can USA traders open an account and join in on the fun?
     
  5. yes, IB offers asian futs access and there's no extra fee for data: I would suggest anyone to have a hard look at the mechanics of n225, there's virtually no diff between daily ranges on dow during the bubble and the nikkei now; much less noise and bigger, trendier swings.
     
  6. How about the time zone? It's 14 hrs between Tokyo and EST.
     
  7. Bitstream. Regarding the 225 how do you find the differences between the japanese traded futures and those that are traded through the singapore exchange? Def seemed to think that there was better liquidity and bakc end via Singapore. What is your experiencs regarding liquidity. Does this market gap often? Can you move decent size?
     
  8. mizer

    mizer

    How about access to trading individual equities?
     
  9. well that might be a problem if u want to trade both us session and asian's: nikkei RTH begin at 19:00EST; duration is of 6hours with a huge pause between 21:00 to 22:00, but prolonged extended hours carries on (on futs) 'till 7:00.
    Still....at the moment I am trading both us and asia >>ncsme :p
     
    #10     Feb 19, 2006