Japan's top five online securities companies posted record operating revenues and net profits for the April-December period of 2005 on a jump in trading commissions, particularly from individual investors, according to the brokerages' financial results, all of which had been released by Friday.
The Net securities firms expanded their customer base among individual investors amid last year's sharp stock market rally.
In terms of operating revenue, E*Trade Securities Co. led the pack, with sales of 40.5 billion yen, as it won more customers by offering some of the lowest trading fees in the industry.
Matsui Securities Co., which had the second-highest operating revenue, enjoyed the highest net profit among the five, at 14.1 billion yen, up 53.9 percent, year-on-year.
Monex Beans Holdings Inc. saw its net profit soar 72.7 percent to 9.1 billion yen, in part because the merger of its two securities units helped it cut sales and administrative costs, President Oki Matsumoto said.
Rakuten Securities Inc., which is not a listed company, saw its net profit surge 370 percent. Kabu.com Securities Co. boosted its net profit 65.9 percent.
Competition in the online securities business is expected to intensify as Matsui announced Friday a plan to initiate in April its sharpest cut in commissions since 1999.