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PR Newswire
07-02-2012, 11:28 AM
The Straits Times
Feb 6, 2012
More young investors trading shares
Some broking houses pulling out all the stops to engage this group
By Jonathan Kwok
YOUNG investors, some barely old enough to drive a car, are leaping into the stock market in growing numbers.
Broking houses in Singapore said investors aged 18 to 21 make up a small but growing source of business - and some of the firms are pulling out all the stops to foster greater interest among this group.
Still, the issue can be sensitive. Last week, details emerged of a pending court case involving alleged underage trading.
But the industry, emphasising the safeguards it has in place, estimates that the number of investors aged between 18 and 21 could have grown by a third or perhaps even doubled in the past year.
But the rise comes off a low base so they make up only a very small portion of broking houses' clients. Some estimates put the figure at less than 5 per cent.
Investors are becoming financially literate at a younger age and are looking to grow their money.
'With young investors looking for alternative investment strategies, the growth of this market has steadily surpassed the growth of investors of other ages,' said Mr Jeffrey Goh, head of retail business at Kim Eng Securities.
OCBC Securities managing director Hui Yew Ping said it has received an 'encouraging response' from new investors under 21 years old.
This niche market started less than three years ago. It was in March 2009 that the Singapore Exchange allowed share ownership and trading at the age of 18, lowering the limit from 21. This was in tandem with a similar reduction in the legal age for entering into most contracts in Singapore.
Young investors were in the spotlight last week, with news that a father and son were suing a private banking unit of Credit Suisse over trading losses incurred by the son when, they said, he was still a minor and legally too young to trade.
The son, Ian Ow, had traded MSCI Singapore Free Index futures contracts at the age of 20 in 2007, before the lowering of the legal age for trading.
Traders aged 21 and under are putting between $5,000 and $10,000 a trade at brokerages, The Straits Times understands.
While some brokerages in Singapore allow those aged 18 to 21 to open accounts, some other houses such as DBS Vickers and UOB Kay Hian allow only those older than 21 to open accounts.
Those tussling for market share are sparing no effort to court young investors.
OCBC Securities has organised stock trading competitions together with the investment clubs of local universities since 2006, and organises seminars to educate young investors. The bank also has a Young Investors Pack programme to educate young market players.
Phillip Securities has a similar programme, the Young Investors Group, and separately organises trading and investment seminars for young investors. It has an annual 'stock challenge' game and also organises events with the universities.
Kim Eng has, since 2010, held more than 10 investment talks at universities.
'The financial interest (of young investors) is mainly stimulated by their peers and family members or at school,' said Mr Hui. 'Constant exposure to financial news and financial programmes in the media may have also made more young people interested in investing.'
Poems marketing head Kwang Sook Fong of Phillip Securities said: 'Achieving financial freedom is a constant goal of many young investors who wish to reach it at an earlier age. The recent news about financial turbulence has also got young investors interested in the investment arena.'
Poems is a pioneer in online trading.
Undergraduate Agnes Lim, 22, started trading two years ago. 'My dad has always been trading and following the market and I was influenced by him,' she said. 'I hope to get a source of passive income from my investments.'
Ms Lim, who does both long-term investments and short-term trades, stopped last year due to the euro zone crisis and is looking to re-enter the market.
jonkwok@sph.com.sg
Feb 6, 2012
More young investors trading shares
Some broking houses pulling out all the stops to engage this group
By Jonathan Kwok
YOUNG investors, some barely old enough to drive a car, are leaping into the stock market in growing numbers.
Broking houses in Singapore said investors aged 18 to 21 make up a small but growing source of business - and some of the firms are pulling out all the stops to foster greater interest among this group.
Still, the issue can be sensitive. Last week, details emerged of a pending court case involving alleged underage trading.
But the industry, emphasising the safeguards it has in place, estimates that the number of investors aged between 18 and 21 could have grown by a third or perhaps even doubled in the past year.
But the rise comes off a low base so they make up only a very small portion of broking houses' clients. Some estimates put the figure at less than 5 per cent.
Investors are becoming financially literate at a younger age and are looking to grow their money.
'With young investors looking for alternative investment strategies, the growth of this market has steadily surpassed the growth of investors of other ages,' said Mr Jeffrey Goh, head of retail business at Kim Eng Securities.
OCBC Securities managing director Hui Yew Ping said it has received an 'encouraging response' from new investors under 21 years old.
This niche market started less than three years ago. It was in March 2009 that the Singapore Exchange allowed share ownership and trading at the age of 18, lowering the limit from 21. This was in tandem with a similar reduction in the legal age for entering into most contracts in Singapore.
Young investors were in the spotlight last week, with news that a father and son were suing a private banking unit of Credit Suisse over trading losses incurred by the son when, they said, he was still a minor and legally too young to trade.
The son, Ian Ow, had traded MSCI Singapore Free Index futures contracts at the age of 20 in 2007, before the lowering of the legal age for trading.
Traders aged 21 and under are putting between $5,000 and $10,000 a trade at brokerages, The Straits Times understands.
While some brokerages in Singapore allow those aged 18 to 21 to open accounts, some other houses such as DBS Vickers and UOB Kay Hian allow only those older than 21 to open accounts.
Those tussling for market share are sparing no effort to court young investors.
OCBC Securities has organised stock trading competitions together with the investment clubs of local universities since 2006, and organises seminars to educate young investors. The bank also has a Young Investors Pack programme to educate young market players.
Phillip Securities has a similar programme, the Young Investors Group, and separately organises trading and investment seminars for young investors. It has an annual 'stock challenge' game and also organises events with the universities.
Kim Eng has, since 2010, held more than 10 investment talks at universities.
'The financial interest (of young investors) is mainly stimulated by their peers and family members or at school,' said Mr Hui. 'Constant exposure to financial news and financial programmes in the media may have also made more young people interested in investing.'
Poems marketing head Kwang Sook Fong of Phillip Securities said: 'Achieving financial freedom is a constant goal of many young investors who wish to reach it at an earlier age. The recent news about financial turbulence has also got young investors interested in the investment arena.'
Poems is a pioneer in online trading.
Undergraduate Agnes Lim, 22, started trading two years ago. 'My dad has always been trading and following the market and I was influenced by him,' she said. 'I hope to get a source of passive income from my investments.'
Ms Lim, who does both long-term investments and short-term trades, stopped last year due to the euro zone crisis and is looking to re-enter the market.
jonkwok@sph.com.sg
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/