FSS, Japan’s SBI Group to launch online brokerage in Thailand

Visual from FSS website

Finansia Sirus Securities Plc (FSS) signed a joint venture agreement with SBI Group, a major Japanese Financial conglomerate, to set up SBI Thai Online Company to launch the first pure-play online brokerage business to investors in Thailand.

This is the second such joint venture of the FSS and the SBI Group. Previously, FSS and SBI Group co-invested in SBI Royal Securities Plc, a securities brokerage company in Cambodia, in 2014.

“SBI Securities, a subsidiary of SBI Group and the leading online broker in Japan in terms of market share and number of accounts, will share its expertise and know-how technology. Moreover, this joint venture will tighten the relationship between the two companies,” said FSS’s chief executive and president Chuangchai Nawongs.

In SBI Thai Online’s shareholding structure, FSS accounts for 45 per cent stake while the SBI Group has a 55 per cent stake, with a registered capital of 500 million baht.

According to its statement, the company has been granted securities licenses on March 16 and derivative licenses on April 9 by Finance Ministry and Securities and Exchange Commission. Currently, it expects that the preparation for the operation commencement will be completed in August 2015.

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Adisorn Mungparnchon, an analyst at Phillip Securities (Thailand), said that this joint venture would make the competition in securities business tougher.

“Each brokerage has paid more attention to online market because it has cheaper operation cost than the traditional marketing system. The lower cost also creates more competitive commission fee so I believe more investors will shift to trade via online system,” he said.

He declined to comment on SBI Thai Online to provide the only online securities service. “I have no information how it will be different from other online brokerages. But I think it is trying to attract a new group of clients by offering cheaper commission fee,” he cited.