The Abu Dhabi Securities Exchange (ADX) is keeping a sharp eye out for small retail investor participation. Waiving commissions on trades should encourage more small-ticket deals. Image Credit: Gulf News Archive

Dubai: The Abu Dhabi stock market operator ADX has done away with the minimum commission fees on trade of all listed securities from today (August 31). The intention is to get more small investors engage in market transactions.

ADX incidentally has been one of the hottest performing stock markets in the region, shooting past the Dh1 trillion market cap figure this year. It has also hosted a series of new listings and could soon be hosting one of the most anticipated IPOs – from the industrial heavyweight EGA (Emirates Global Aluminum).

Earlier this week, ADX dropped the trading commissions to 0.025 per cent from 0.05 per cent. This is ADX’s second commission cut this year and the third in three years. An earlier decision to extend trading hours will be implemented from October 3.

The change to minimum commission fee will “facilitate higher volumes of small trades, typically undertaken by individual investors”, the stock exchange said. “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,” said Saeed Hamad Al Dhaheri, CEO of Abu Dhabi Securities Exchange. “By increasing liquidity as well as broadening our offering of products and services, ADX will become an even more attractive market.”

Dubai does it too
The Dubai Financial Market (DFM) operator has also confirmed that minimum trading commissions will be waived from September 1 as part of "initiatives aimed at promoting retail investors’ participation in the market".