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<\/a><\/figure>\n\n\n\nOne of the reasons why the gross margin of brokerage activities of securities companies is getting narrower comes from the increasingly fierce competition among securities companies. The race for \u201czero fee\u201d has not ended as hot as more and more securities companies reduce fees, even free transactions.<\/p>\n\n\n\n
Meanwhile, revenue from brokerage activities also gradually shrunk as the wave of new investors cooled down. After a period of continuous hot growth, the number of new accounts opened by domestic investors has continuously decreased sharply recently. In September, domestic investors only opened 102,000 new accounts, the lowest in 14 months since July 2021.<\/p>\n\n\n\n
It should be noted that many securities accounts will fall into the “passive” state due to passive opening. Customers who open an account at a bank will be automatically opened a securities account by securities companies associated with the bank while there is no real need for trading. As a result, the number of new investors entering the market may be much lower than the new account opening statistics. On the other hand, it is inevitable that there are investors leaving the market after the recent difficult period.<\/p>\n\n\n\n Race for market share to do?<\/strong><\/p>\n\n\n\n Although revenue is shrinking and gross profit margin is also thinning, the brokerage business still plays a very important role in the operation of securities companies. Because, the benefits from the “huge” customer file can bring much greater than the normal transaction fee revenue.<\/p>\n\n\n\n One of the obvious benefits is the positive impact of having a large customer base on lending operations. Of course, investors often prefer to use margin at securities companies that already have accounts, although the interest rate factor may cause customers to change their mind. The larger the customer base in some respects, the higher the demand for margin loans.<\/p>\n\n\n\n In addition, a large customer file will also help securities companies bring products to investors more easily. Previously, if investors participated in the stock market because they mainly invested in stocks, now the demand has changed. Investors need securities companies with good asset management capabilities, ensuring profitability despite the ups and downs of the market. This means that when stocks are less attractive, the demand to invest in bonds, fund certificates or other products will increase.<\/a><\/p>\n\n\n\n Grasping this trend, securities companies have also gradually built up an ecosystem of many different products. Typically, VNDirect with products such as D-Bond, D-Money, D-Cast and retirement savings packages, Saving piggy bank or setting up own investment funds (VNDAF Active Investment Fund), .. These products will be more effective when marketed directly to customers.<\/p>\n\n\n\n Moreover, the gloomy trade may only be a short-term problem due to the influence of interest rate hikes and market clearing activities. Basically, oriented securities will become more and more popular and the number of investors will continue to increase is an inevitable trend. In Vietnam’s securities development strategy to 2030, the Ministry of Finance sets a target that the number of investors on the stock market will reach 8% of the population by 2025 and 10% of the population by 2030.<\/p>\n\n\n\n Obviously, the growth potential in the long-term is very large and shaping the brand and increasing the presence right now is very necessary for securities companies. This is also the reason why the race for brokerage market share is still very hot.<\/p>\n\n\n\n Piece of cake is increasingly fragmented<\/strong><\/p>\n\n\n\n In fact, the position of securities companies in the market share game has been mixed in the past 3 years. In the previous period, the market share race was almost exclusively confined to SSI, VCSC, and HSC groups. At that time, investors did not have many options when the number of securities companies with real potential was still limited. Although the above securities companies charge high fees, they still attract customers thanks to their established brands.<\/p>\n\n\n\n<\/a><\/figure>\n\n\n\n