Monex, Inc Posts 141% YoY Increase of FY2020 Profits

Monex Group, Inc. has reported the financial results for its wholly-owned subsidiary Monex, Inc. for the fiscal year ending on the 31st fo March 2020 this Thursday, revealing a solid boost in profit for the retail broker.

In particular, for the fiscal year ending in March 2020, Monex Inc achieved a profit of ¥1.662 billion ($15.6 million). This is significantly higher than the ¥688 profit posted in the previous fiscal year. Specifically, profit has increased by 141.5 percent on a yearly comparison.

In terms of key metrics, that is where the positive news for the Japan-based retail broker ends, as the company reported a drop in operating revenue, net operating revenue, operating income and ordinary income on a yearly measurement.

In particular, operating revenue was ¥27.99 billion, which is lower by 3.5 percent year-on-year. Net operating revenue fell by 5.1 percent, coming in at ¥24.71 for the fiscal year, and operating income and ordinary income dropped by 3.0 percent and 4.9 percent, respectively.

Taking a look at the revenues generated from brokerage commissions, stocks and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term-traded funds (ETFs) generated ¥10.09 billion in commissions for the 2020 fiscal year, which is less than the ¥10.47 in commissions made in the previous year.

Brokerage commissions made by options and futures, however, did post an uptick of 18.4 percent, rising from ¥310 million in the 2019 fiscal year up to ¥367 million in the year ended on the 31st of March, 2020.

COVID-19 provides a trading boost for Monex

In addition to publishing the financial results for Monex, Inc, the Group also announced its own results. For the same 2020 fiscal year, Monex Group posted a total revenue of ¥53.38 billion.

“A spike in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term combined with more time to trade at home drove higher market transactions of online brokers. In March, trading volumes reached their highest level since 2013 at Monex Securities and set a new record in DARTs at TradeStation,” the Tokyo-headquartered company said.