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Monex Group, a Japanese forex brokerage, reported on Friday its daily average revenue trades (DARTs) fell to a new third lowest in October 2016. DARTs, or the daily number of transactions that generate revenue per business day, from global operations hit 236,895 in October 2016. The figure represents a monthly decrease of 5.7% and an annual drop of 14.4%.
The only two lowest DARTs levels were reported in August this year (231,108) and in July 2011(231,108) when the brokerage started publishing such data.
The broker did not provide a comment on what caused the low trading activity. Its metrics are confirming an ongoing trend since data from the Financial Futures Association of Japan (FFAJ) has shown the Japanese forex market is suffering. Since the beginning of the year, the trading volumes of forex brokers in Japan have been bouncing up and down, while those of binary options brokers have been continuously on the decline. Brokers started the year strong, but lost momentum over the course of the year.
The DARTs of Monex Inc., the group’s Japanese subsidiary, stood at 142,983 in October, down by 3.3% on the month and 9.7% over the year. The broker saw an average trade value from forex over-the-counter (OTC) forex services of JPY 95.5 billion per business day last month, falling more than 20% both on a monthly and an annual basis.
TradeStation Group, the entity in charge of Monex group’s operations in North America and Europe, generated DARTs of 94,307 in October, also posting a significant drop of 9.1% on the month and 20.9% year-on-year.
While trading activity has lowering, the number of active accounts of Monex Inc. and TradeStation Group stayed relatively unchanged in October compared to the preceding month. However, if compared to a year earlier, things look slightly different. Monex Inc. handled 3.7%, or 36,370 new clients than a year earlier, while TradeStation Group saw its active clients posting an annual drop of 9%, or 6,151. Active accounts indicates the number of accounts (equities, futures, forex, etc.) with a balance of more than $200, or which have traded in the past 6 months as of the end of each month.
Monex Group operates internationally and consists of a group of companies based in Japan, Asia, North America and Europe.
Monex Group operates under three retail trading brands – Monex, TradeStateion and Boom. The majority, or about 60%, of its revenue comes from operations in Japan and the remaining 40% from operations in the US. It did not provide trading metrics about its other subsidiaries.