In a groundbreaking move, Nextrade has launched South Korea’s first alternative stock exchange, breaking the longstanding monopoly held by Korea Exchange for almost 70 years. The CEO of Nextrade, Kim Hak-soo, highlighted the platform’s unique features during its launch event in Yeouido, western Seoul. Unlike the traditional market hours of Korea Exchange, Nextrade offers extended trading hours spanning 12 hours a day, from 8 a.m. to 8 p.m.

The introduction of Nextrade brings a wave of innovation to the local capital market, offering investors flexible trading hours and lower commission fees. However, initial concerns arise regarding the limited selection of stocks available and the relatively low liquidity at the outset. Despite these challenges, Nextrade aims to provide efficient and innovative services tailored to the needs of the domestic capital market.

Nextrade emerged as a collaborative effort by a consortium comprising 34 securities and tech firms, with its inception dating back to November 2022. Following regulatory approvals, Nextrade officially commenced operations, marking a significant shift in the dynamics of the South Korean stock market landscape. The platform’s launch signifies a new era of competition and choice for investors, challenging the long-established dominance of Korea Exchange.

One of the key advantages of trading on Nextrade is the extended trading hours it offers, allowing investors to engage in trading activities during early mornings and evenings. The trading day on Nextrade is divided into premarket hours from 8 to 8:50 a.m., regular market hours from 9 a.m. to 3:20 p.m., and aftermarket hours from 3:40 to 8 p.m. To further enhance operational efficiency, brief trading pauses are scheduled twice a day.

Moreover, Nextrade aims to attract investors with commission rates that are notably lower than those of Korea Exchange. The platform plans to waive all commission fees until April 30 to incentivize trading activities and promote market participation. Despite the initial offering being limited to 10 stocks, including prominent names like Samsung Electronics and Hyundai Motor, Nextrade plans to expand its roster to 800 stocks by the end of March.

Investors now have the option to choose between Korea Exchange and Nextrade during overlapping trading hours. Factors such as commission fees, trading speed, and bid price can influence investors’ decisions on which platform to utilize. Notably, brokerage firms play a vital role in executing transactions on behalf of investors, ensuring the best possible outcomes through platforms like the Smart Order Routing system.

The emergence of Nextrade heralds a new chapter in South Korea’s financial landscape, ushering in increased competition, extended trading opportunities, and enhanced accessibility for investors. As the platform continues to evolve and expand its offerings, it is poised to reshape the dynamics of the country’s stock market and provide a compelling alternative to the established institutions.