The Dhaka Stock Exchange (DSE) has again imposed a monthly charge of Tk 125 per user for share trading using its mobile phone app – DSE-Mobile – with effect from January 1 next year.
The board of directors of the premier bourse took this decision yesterday, which already has drawn huge criticism from investors, stockbrokers, and market analysts.
In the current market context, this will be an additional burden for retail investors, capital market stakeholders say, adding that this may lead stockbrokers to face more challenges in their client management.
Some brokers may have decided not to charge the full Tk 125 from their clients. If this happens, the remaining charge will be paid by brokerage firms, which will create a mismatch between their costs and expected trading revenues, they added.
Earlier on December 19, 2018, the prime bourse’s board had decided to impose a monthly charge of Tk 150 per user with effect from January 1, 2019.
But on December 23, 2018, they had scrapped the decision after catching a spate of flak from different quarters, including stockbrokers, trading rights entitlement certificate (TREC) holders, and investors.
On Wednesday, the prime bourse in a letter asked its TREC holders to receive client consents on the charge of this fee if they want to execute their trading through the DSE-Mobile app.
As per the letter, the DSE would provide Mobile app connections to the interested TREC holding companies upon payment of service for Mobile Apps of Tk 125, including vat and tax, for each connection per month on the basis of first come, first served.
The DSE also said the payment should be made in advance to DSE through an account payee cheque or BFTN in every quarter.
Md Ashequr Rahman, managing director at Midway Securities Ltd, told The Business Post that what once was free will now cost Tk 125 a month. Only active investors may find it worthwhile to pay. Retail investors with small investments will not be able to afford it.
The lack of a trading app will prevent new small investors from accessing the market updates. So, potential clients who once were thinking about entering the stock market will now review their decision. Besides, due to the floor price, even many active traders will find it cumbersome to afford this additional charge, he added.
“On the other hand, the income of brokerage firms may see a downtick if they start to subsidise the app fee themselves.”
“I think, given the overall market situation and also the retail composition of our capital market, the DSE could charge at most Tk 50 per month for the use of the mobile App,” Ashequr Rahman continued.
Another stockbroker said charging this fee will create a difficult situation for stockbrokers because client management will be more challenging for them.
Some brokers may decide not to charge the full Tk 125 from their clients in order to offer trading incentives. So, there will be a mismatch between their costs and expected trading revenues, he remarked.
The country’s premier bourse had launched the app on March 9, 2016 to facilitate share trading. The application was developed by FlexTrade Systems, a global leader in broker-neutral trading platforms.
The DSE-Mobile app has quickly gained popularity among investors in Bangladesh. With its intuitive design and wealth of features, DSE-Mobile has transformed the way investors engage with the stock market.
The number of active users of the DSE mobile application rose to 46,238 till June 12 this year, according to DSE data.
Apart from executing buy and sale orders, the app also features a real-time display of market and trading statistics, company and portfolio status, company news, and purchase and sale alerts.
The app is available on the Google Play Store and offers features to help users track the indices and get information about the market and company.
The mobile app brings a new dimension of business opportunities to the capital market and connects investors to state-of-the-art trading technology.
The latest version, DSE-Mobile v2, released in April 2023, offers even more modern features and leverages the most recent development frameworks to enhance usability and the user experience.
The ‘DSE-Mobile Trader’ version allows users to independently place orders, while the ‘DSE-Mobile VIP’ option offers high-end services, with professional traders handling the execution of orders on behalf of investors.
Business owners holding a TREC can also benefit from the ‘DSE-Mobile Biz Owner’ option, which provides them with awareness of their brokerage business activities and status.
With its user-friendly interface, extensive features, and continuous updates, DSE-Mobile is an indispensable tool for investors seeking to stay ahead in the dynamic world of stock trading.
As technology continues to reshape the financial landscape, the DSE-Mobile app is at the forefront, enabling investors to make informed decisions and capitalize on opportunities with confidence.
