ADX cuts off minimum commission fee on all listed securities to attract investors

By Arya M Nair, Official Reporter
  • Follow author on
Representational image

The Abu Dhabi Securities Exchange (ADX) has announced that it would eliminate its minimum commission fee on all listed securities trades, in order to encourage more individual investors to participate in one of the top-performing markets in the world this year.

The decision follows the announcement on Saturday of a 50 percent reduction in trading commissions along with an extension of market opening hours by one hour to 3 pm. These initiatives are part of the “ADX One” strategy announced at the beginning of this year, which aims to bolster activity and deepen liquidity on the exchange.

The removal of the minimum commission fee will make it easier for private investors to facilitate higher volumes of small trades. The idea has been met with positive feedback in informal soundings among key stakeholders, including investors, brokers, and listed companies.

ADX is an increasingly vibrant market that provides global and local investors with high-quality access to the strong economic fundamentals in the region, and Abu Dhabi in particular.

Saeed Hamad Al Dhaheri
Saeed Hamad Al Dhaheri

“By waiving the minimum fee and reducing commission rates on all listed securities, we are providing more cost-effective trading for individual investors, ensuring that they benefit from the investment opportunities available to institutional investors. By increasing liquidity as well as broadening our offering of products and services, ADX will become an even more attractive market.”

The drop in trading fees from 0.05 percent to 0.025 percent, which will take effect on September 1st, is the exchange’s second commission cut in 2021 and third in three years. Meanwhile, the decision to extend trade hours will take effect on October 3rd.

The Abu Dhabi Securities Exchange General Index (ADI) recently achieved 7700 points for the first time, driven by a surge of new listings and increased participation from international investors. Furthermore, the index has gained 52 percent year to date, making it one of the world’s best-performing equity indexes.

Related: Abu Dhabi DoE seals Exclusive Accredited Issuer deal with I-REC Standard