IDC Deems Asia/Pacific Ready For Online Trading
FRAMINGHAM, MA – MAY 17, 2000 – Online trading in Asia/Pacific is about to skyrocket. According to IDC, pure-play online brokerages are popping up across Asia, and an increasing number of the region's traditional brokerages are offering online trading.
"As of yearend 1999, online trading in Asia/Pacific was in an extremely nascent state," said Matthew McGarvey, a research analyst in IDC's Hong Kong office. "However, with the growing popularity of the Internet and the general increasing comfort and trust in Internet security, online trading will experience explosive growth and popularity within the region in the next five years."
In 1999, less than 10% of the region's trades were conducted online. By 2004, IDC expects 40% of Asia/Pacific's trades will be online. During that same time frame, the number of investors using the Internet for their transactions will increase from less than 2.77 million to 20 million.
"Online brokers will have to prepare themselves to handle heavy spikes in the market," McGarvey warned. IDC expects much of the growth in Asia/Pacific's online trading will occur between 2002 and 2004.
The Asia/Pacific online trading market will have the advantage of learning from the U.S. market. "Asia/Pacific has been able to follow the rise and fall of many online brokerage companies in the West and thus will not have to reinvent the wheel," McGarvey said. "Nevertheless, many aspects of online trading will take on unique characteristics in the region. Asia/Pacific will place a higher priority on online brokerages' ability to access the numerous markets in the region, conduct transactions in multiple currencies, and offer regional-specific research."
IDC believes online brokerages expanding from the U.S. market to Asia/Pacific will flourish in the short term, but will soon lose out to indigenous firms with established histories and reputations within the region.
"Asian companies will have the advantage of being the home team players," McGarvey said.
IDC recently published Online Trading in Asia/Pacific (IDC #BAP4001G). This reports analyzes the opportunity for online trading in Asia/Pacific. It discusses the investment structure in Asia/Pacific's countries and sizes the number of active online accounts and online trade volume in the region during 1999 by country. Additionally, the report discusses online trading specifically in Korea, Australia, Singapore, Hong Kong, India, China, and Taiwan. The report concludes with recommendations for companies moving into online brokerage in the region. To purchase the report, please contact Cheryl Toffel at 1-800-343-4952 extension 4389. For more information on IDC Asia/Pacific's research offerings, please contact Beth Freedman or Lisa Bloom at 508-872-8200.
IDC delivers dependable, high-impact insights and advice on the future of ebusiness, the Internet, and technology to help organizations make sound business decisions. IDC forecasts worldwide markets and trends and analyzes business strategies, technologies, and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC provides global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at http://www.idc.com.
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