By LYDIA NATHAN / Pic credit: fsmone.com.my
FSMOne Malaysia (FSMOne) has launched its latest trading platform to the Malaysian market, allowing local investors to trade US and Hong Kong securities on its multi-asset platform.
The online distribution arm of IFAST Capital Sdn Bhd said it will also offer the lowest brokerage fee of 0.8% or a minimum charge of RM37 (US$8.80), as it paves the way for the growing retail segment to be as competitive as institutional players in the market.
Its general manager Wong Weiyi said the platform is designed to allow greater interaction and ease of use, and it is good for local investors to hold overseas investments, especially during this time.
“The Malaysian Ringgit may be weakening compared to other countries as the economic recovery for developing countries will move at a faster pace, as well as recovery of interest rates which is beneficial for investors with foreign holdings,” he said during the virtual launch of US and Hong Kong Securities recently.
According to Wong, the recent tech issues in China have made it a good time to venture into foreign investments as its tech giants saw its shares fall about 20%, wiping out returns that were revived in the last year and a half.
“There have been various challenges that China went through, in 2015 there were concerns of a hard landing in China as well as FX devaluation. In 2018 the So if you have the risk appetite, and you believe that China is on its way to become the world’s largest economy within a decade’s time, I would think a recent sell-off would be a great opportunity to pick up some Chinese ETFs,” he said.
Wong said there is no fixed target for investors to participate in the two new stocks but he does anticipate at least 30,000 new investors for 2021.
“I think we will be disappointed if we don’t hit this number because we have seen an increase of investors on the platform lately, even without the foreign shares. The Covid-19 pandemic has given people more time to pick up financial literacy which will help push our targets through.”
“On top of that, investors have a desire to look for other sources of income especially in recent times, some are looking to gain against the weaker Ringgit specifically in foreign investments,” he said.
Some of the key trends he said the platform has seen include investors moving to developed markets as it reopens quickly.
“For instance, Malaysia has not seen much air travel but the US and Europe have recorded passenger flights picking up as better vaccination programmes speed things up as well. We foresee room to pick up for the travel and leisure industries, as well as gaming,” he said.
Meanwhile, Wong said as FSMOne is licensed by the Malaysian Securities Commission and Bursa Malaysia, safety is guaranteed while investors can now enjoy extended hours of phone support until 10.30 pm on business days.
“By extending the support hours, it takes away the concerns of a retail trader and provides them the assurance of assistance they would receive, at the opening bell’s ring. FSMOne service is affordable, transparent, and adopts a straightforward fee structure, which means no minimum deposit or fees.”
“Our seamless process eases account opening and currency exchange to fund the account whereby a new trader can get started in less than one working day. We also offer research commentaries covering ETFs, which is a feature that is unique to us at the present moment,” Wong noted.