TRADERS HOLDINGS CO.,LTD.

Business Details

Operated by subsidiary Traders Securities Co., Ltd. Provides FX margin trading (Minna no FX, LIGHT FX, Minna no System Trade), FX option trading (Minna no Option), and crypto asset margin trading (Minna no Coin). Customers are primarily individual retail investors, with a real-time trading environment available 24 hours via the internet. Revenue is primarily generated from trading gains/losses, with growth in customer assets under custody serving as the main driver of revenue expansion. The segment employs an over-the-counter trading model in which foreign exchange risk on proprietary positions is managed through cover transactions.

Recent Overview

Revenue declined slightly, while the number of customer accounts and assets under custody reached record highs

In FY2026 (ending March 2026), operating revenue in the Financial Instruments Trading Business was ¥13,107 million (down 1.5% year on year), and segment profit was ¥5,974 million (down 2.2% year on year), representing modest declines in both revenue and profit. On the other hand, the customer base continued to expand steadily, with the number of customer accounts reaching 662,459 (up 56,430 from the prior fiscal year-end) and customer assets under custody reaching ¥133,295 million (up ¥21,024 million). Initiatives implemented during the period included introducing LIGHT pairs to Minna no FX, launching Swiss franc carry trades, adding four new cover trading counterparties, and completing the system migration from MT4 to MT5.

Key Products

Growth Drivers

• Continued growth in customer assets under custody (¥133,295 million at the end of FY2026, ending March 2026, up ¥21,024 million from the prior fiscal year-end), laying the foundation for expanded trading gains/losses
• Improved swap point competitiveness and expanded trading among medium- to long-term oriented customers through the introduction of LIGHT pairs to Minna no FX and the launch of new Swiss franc carry trades
• Strengthened liquidity provision capacity and risk management through diversification of cover trading counterparties (four additional domestic and overseas financial institutions added)
• Transition to a full-scale growth phase for Minna no System Trade from the next fiscal year onward, following completion of the MT4-to-MT5 system migration (with enhanced deployment of EAs for repeat orders and follow trades)
• Strengthened competitiveness and expanded market share for Minna no Option through a full system renewal (scheduled for completion in the next fiscal year)
• Enhanced customer trust and strengthened fraud prevention through security enhancements such as eKYC adoption and FIDO2-compliant passkeys (introduced March 28)
• Upward revision of the target for customer assets under custody in the final year of the medium-term management plan (FY2027, ending March 2027) to ¥150,000 million (from the previous target of ¥145,000 million)

Risks

• In periods of declining foreign exchange market volatility, customer trading volume decreases, significantly compressing trading gains/losses (trading gains/losses in FY2026, ending March 2026, were ¥12,975 million, down ¥235 million year on year)
• There is a pronounced trend of trading share concentration among the top few players in the FX industry, and Traders Securities, positioned mid-tier in the industry, is susceptible to the effects of intensifying competition
• Intensifying competition over spreads and swap points with competitors is compressing revenue, and increased spending on advertising and other costs for customer acquisition is unavoidable (trading-related expenses in FY2026, ending March 2026, were ¥2,173 million, up ¥114 million year on year)
• There is substantial working capital demand associated with daily settlements with cover trading financial institutions and the receipt/payment of customer segregated trust funds, and since receiving funds from overseas cover trading counterparties takes one to two business days, there is a risk of temporary large-scale advance payments (foreign exchange margin deposits at the end of FY2026, ending March 2026, were ¥13,720 million)
• There is uncertainty regarding the assessment of the recoverability of deferred tax assets, and if future taxable income projections change, there is a risk that adjustments to corporate income tax expense will increase, reducing net income for the period