South Korea’s financial market witnessed a historic moment on Tuesday, March 4, 2025, as Nextrade (NXT), the country’s first alternative stock trading platform, officially commenced operations. This landmark event marks the end of the Korea Exchange’s (KRX) 70-year monopoly on stock trading, ushering in a new era of competition and expanded opportunities for investors.
Extended Trading Hours
One of the most significant changes introduced by Nextrade is the extension of trading hours. The new platform operates for 12 hours, from 8 AM to 8 PM, considerably longer than the KRX’s traditional 6.5-hour window of 9 AM to 3:30 PM. This extended schedule includes:
- Pre-market trading: 8 AM to 8:50 AM
- Regular market hours: 9 AM to 3:30 PM
- After-market trading: 3:30 PM to 8 PM
This expansion allows investors to react more swiftly to global financial developments occurring outside regular market hours, providing greater flexibility and convenience.
Competitive Fee Structure
Nextrade aims to attract investors by offering more competitive transaction fees. The new platform’s fees are 20 to 40 percent lower than those of the Korea Exchange. Specifically:
- Maker orders: 0.0013% of transaction value
- Taker orders: 0.0018% of transaction value
In comparison, the KRX charges a flat fee of 0.0023% for all transactions.
Gradual Expansion of Listed Stocks
Nextrade launched with a carefully curated selection of 10 stocks, including five from the benchmark KOSPI index and five from the KOSDAQ market. The initial lineup includes well-known companies such as Lotte Shopping, YG Entertainment, and LG Uplus. However, the platform has ambitious plans for rapid expansion:
- March 17: Increase to 110 stocks
- March 24: Further expansion to 350 stocks
- March 31: Reach 800 listed stocks
This gradual rollout is designed to enhance market liquidity and establish Nextrade as a viable alternative to the KRX.
New Features and Trading Options
Nextrade introduces several new features to enhance the trading experience:
- Smart Order Routing (SOR): This system automatically determines the optimal venue (KRX or NXT) for executing trades.
- Middle Price Asking: Set at the average of the highest selling and buying prices8.
- Stop Designated Price: Allows investors to set orders at pre-designated prices when the market reaches specific levels.
To ensure market stability, Nextrade will implement the same safeguards as the KRX, including circuit breakers, sidecar curbs, and volatility interruptions. Daily price movements will be limited to 30% above or below the previous day’s closing price on the KRX.
The launch of Nextrade has garnered significant support from the financial industry. Of the 32 securities firms planning to join, 28 participated from day one, collectively representing 87.4% of last year’s brokerage market share by transaction value.
As South Korea’s financial market enters this new phase of competition and innovation, investors and industry observers alike will be watching closely to see how Nextrade’s presence shapes the future of stock trading in the country.
Comments