For one month, buy stocks but pay no commission at Cambodia Securities Exchange
For one month, buy stocks but pay no commission at Cambodia Securities Exchange
In a first-of-its-kind initiative, the Cambodia Securities Exchange (CSX) has announced a ‘Zero Commissions on All Stock Purchases’ promotion.
Effective for one month only, starting from May 27 and continuing until June 28, 2024, investors can purchase any stocks listed in the CSX without incurring any fees, through any brokerage firms that are the members of the CSX.
The limited time offer seeks to empower investors to invest in stocks without additional commission costs or fees, and enhance market accessibility to the CSX during the exchanges dividend distribution season, according to a press release from the CSX on the zero fees promotion.
“Our zero fees initiative coincides with dividend distribution season 2024, a time when most stocks listed on the CSX are currently conducting their annual dividend distributions, allowing investors to benefit from both zero transaction fees and the potential for dividend payouts,” noted the release.
By reducing barriers to entry, namely the additional fees associated with stock commissions, the CSX anticipates the increasing of liquidity and trading volumes across the exchange boards.
The release noted that during the month-long promotion period, investors will benefit from having increased flexibility to execute their trading strategies more productively, and gain benefits from a more vibrant marketplace overall.
“With rising investor participation during the promotion period, we also anticipate that the market is likely to experience handsome trading prices, enabling a great opportunity for investors to expect growth momentum in their portfolios,” the release explained.
The CSX said that the initiative underpins the institution’s commitment to transparency, integrity, and high standards of service for its clients, along with its willingness to pursue innovation to satisfy the needs of CSX investors.
“The decision to introduce zero percent fees reflects our dedication to putting our investors first and providing them with the tools and resources they need to achieve their financial goals,” said the exchange.
The CSX stated that it aims to maximize the playing field by encouraging broader participation in wealth creation through the stock market.
“Everyone, especially Cambodian people, should have the chance to experience stock investment and get benefits from the stock market growth – as well as the advancement of our national economy,” noted the release.
In another recent bid to improve local access to the benefits of CSX investments, the exchange announced earlier this year that investors can now trade their stock in the local currency, the Khmer riel (KHR), and settle in US dollars (USD).
The USD settlement policy took effect as of January 15, 2024, and remains in place.
The CSX explained that USD settlement is a process where investors can place buy or sell orders in KHR but settle the trades in USD, based on the exchange rate offered by the bourse.
The CSX confirmed that the rate for exchange between KHR and USD for the purpose of the USD settlement policy is determined by the National Bank of Cambodia’s (NBC) rate from the previous working day.
Further improving accessibility for new traders based locally or overseas, the CSX also launched an Online Trading Account Opening Platform last year to help traders open accounts instantaneously online.
The CSX was first launched in 2012 as a public enterprise with a 55 percent stake held by the Cambodia government and the remaining shares held by the Korea Exchange.
The CSX currently has 23 listed companies; with 11 companies listed as equity securities, and 12 listed as corporate bonds.
Pursuant to the Law on the Issuance and Trading of Non-Governmental Securities and its subsequent regulations, the CSX operates the securities market, payment and deposit centers and depository.
The CSX is overseen by the regulatory body, the Securities and Exchange Regulator of Cambodia (SERC).
