The sector's ability to weather the downturn depends on trading activity, capital strength, and the success of new investment products that can attract a broader investor base, says Mr Pichet.
Thailand's securities brokerage industry is accelerating its transformation as declining commission fees and volatile trading volumes continue to pressure profitability, prompting firms to diversify revenue streams beyond traditional brokerage services.According to Pichet Sithi-Amnuai, chairman of the Association of Thai Securities Companies (Asco), the sector's ability to weather the downturn depends on trading activity, capital strength, and the success of new investment products that can attract a broader investor base.
Consolidation is a natural part of the brokerage industry, he said, particularly among smaller firms facing capital constraints and shrinking margins.
However, mergers and acquisitions (M&A) are often complex and take longer to materialise than expected, said Mr Pichet, who is also president of Bualuang Securities.
Daily market turnover remains the industry's most important health indicator. With an average trading value of 40-45 billion baht per day, many brokers could continue to struggle financially. In contrast, turnover of around 60 billion baht per day would allow most firms to remain profitable and operate more sustainably.
