Online brokers are continuing to cut their commission charges, in sharp contrast to traditional brokers who are still struggling to maintain the soon-to-be-abolished minimum fee system.
Tai Fook Securities' managing director Peter Wong Shiu-hoi said the firm's online division would cut its commission charge from 0.25 per cent to 0.15 per cent.
The move highlights the clear difference in charges between the firm's online and offline divisions, with the latter still charging the minimum rate of 0.25 per cent.
Tai Fook had said previously it would review its commission charges only after the minimum rate was abolished in April next year.
However, the intensifying competition has meant the firm was not able to wait that long.
Mr Wong admitted the price cut was partly because of increasing price pressure from rivals who had been entering the online market since last year.
Rivals include 2Cube Securities which launched an online trading service in November last year with a commission rate of 0.18 per cent and Hutchison CSFBdirect, launched in January, with a rate of 0.2 per cent.