SET, SEC set to consider reducing trading fees

Pakorn Peetathawatchai, SET president, said operators in the securities business have been calling on the authorities to review the current trading fees.
“We have been discussing this issue with brokers for a long while now, but have not been able to reach a conclusion yet because we have to study its suitability first,” he said.
Meanwhile, SEC officials said they will discuss the issue with SET to alleviate the burden for securities companies as proposed in the quarterly meeting on August 25.
“In line with the current Thai stock market situation, SEC will not increase trading fees,” an official said.
The official added that the SEC currently collects 0.001 per cent of stock trading value, but no more than Bt10 million, while the fees on futures exchange is between 0.01 per cent and 0.10 per cent per contract depending on asset price.
“These regulations have been used since 2017 and are low compared to trading fees in other countries,” the official said.
The SEC staff further explained that SET collects trading fees at 0.005 per cent of trading value, clearing fees at 0.001 per cent of trading value, and securities maintaining fee at Bt1.50 per month for every remaining securities value of Bt1 million, adding that SEC did not set up regulations on fees collected by the SET from brokers.
“SEC is reviewing trading fees in the Thailand Futures Exchange market and taking into account comments from securities businesses,” the official added.
Meanwhile, Pichet Sithi-Amnuai, chair of the Association of Thai Securities Companies, said his association wants SET to cut stock trading fees because brokerage firms’ revenue has dropped even though trading volume has risen.
“Brokers’ commission has continued to drop after liberalisation of the commission-collecting business, resulting in high competition,” he said. “Also, brokerage firms have to bear high costs because they have to pay trading fees to SET.”
However, he said, the association has not set an appropriate level for trading fees, adding that this issue will be discussed with SET and SEC in the future.