Tokyo, April 22 (Jiji Press)–More and more online securities companies in Japan are scrapping commission fees on stock trading for young customers as part of efforts to encourage people in their 20s to start investing.

On Tuesday, industry leader SBI Securities Co. effectively abolished its commission fees on cash trading of domestic stocks for people aged between 20 and 25.

The company will pay back all commissions on trading of Japanese stocks for such customers the following month to make transactions effectively free for young customers, with no upper limit on trading value.

Previously, SBI Securities was offering zero-commission plans for investors trading up to one million yen a day.

Industry rivals Matsui Securities Co. <8628> and Okasan Online Securities Co. are also set to scrap fees for customers aged 25 or under on May 6. Matsui’s fee-free service will cover both cash and margin trading of domestic stocks.

SBI Securities has judged that winning a broader range of customers makes it worth scrapping transaction fees after the company’s revenue from commission fees on online trading of domestic stocks accounted for only 18 pct of the total revenue between April and December last year.

The company plans to widen the scope of age groups subject to commission-free plans in stages to make such plans available for everyone as early as next year.

In terms of value, SBI Securities account for about 40 pct of overall trading by online stockbrokers in Japan. It expects the zero-commission plans to expand its market share further.

SBI Securities was able to scrap commission fees as the company has a variety of revenue sources, said Keiichi Ohara, president of Japan Asset Management Platform Group Co., which offers consulting services to financial institutions.

Ohara pointed to the possibility of industry realignments, saying that securities firms falling behind in efforts to diversify revenue sources will face hardship.