Quick update on iFAST which in my view is poised to see double digit growth over the next five years. iFAST recently said it intends to lower its Singapore and Hong Kong stockbroking commissions from 0.12% to 0.08%, the lowest in Singapore. Cutting stockbroking commissions is a great move for 3 reasons. First, more than 92% of its AUA consists of unit trusts as of end-2017 so this cut in stockbroking fees is unlikely to hurt the company.  Second, iFAST revenue per employee is very high because of its Internet-based platform so the company can afford to lower fees.

2017 comparison	iFAST	UOB Kay Hian
Revenue per employee (SGD)	179,732	94,088
Employees	560	2,960
Commission revenue (SGD m)	101	279

Lastly, new clients who migrate to the iFAST platform may eventually buy unit trusts or other investment products such as bonds or insurance policies ......