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Discounts over at ADXMENA

Discounts over at ADX

Starting February 14th, trading your favorite stocks on the Abu Dhabi Securities Exchange (ADX) will become 22% cheaper (0.225% to 0.175%). Now you can feel less guilty about day trading!

The decision comes as part of ADX’s plan to boost liquidity and double the market capitalization of companies listed on the exchange over the next three years. This will mark the second time the exchange has reduced its commissions after doing so back in June 2019.

ADX is also creating an incentive plan for active brokerage firms. Brokers who generate more than AED 20m worth of trading commissions will be exempt from paying any further commissions for the remainder of the year in which the threshold is met.

The market capitalization of stocks on the ADX increased by 28% in 2020 alone. The increase in liquidity along with the incentive plan for brokerage firms will make the ADX even more attractive for institutional investors. Who else is up for a shopping spree?

why it matters
The reduction of overall trading costs should add positive momentum to the capital inflows the exchange has seen - a bit of a silver lining for investor sentiment, given that the Emirates has imposed workplace restrictions on government entities this week to curb the spread of the novel coronavirus.