Company: TOP
Filing Date: 2025-08-13
Form Type: 20-F
Source: 0001213900-25-075728
Chunk: 12

Company: TOP Financial Group Ltd
Filing Date: 2025-08-13
Form: 20-F
Item: Item 4A
Chunk 12
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 and to develop new
features and services for our users and customers. With the continuous improvement of our technological infrastructure and compliance
capabilities, we are able to serve more consolidated accounts. We also expect cash segregated for regulatory purposes and payables due
to customers on our balance sheet to increase significantly as a result of such growth. We intend to invest more resources on customer
verification, record keeping, compliance and trading-related functions for consolidated accounts. Our ability to serve more consolidated
accounts depends on, among other things, our ability to support all aspects of customer verification, record keeping and compliance functions
using our technology and human resources.

Our ability to develop a diverse customer base
and offer new and innovative products and services

Historically, we have generated a significant
portion of our revenues through the provision of online brokerage services including commissions for execution of trades and interest
income. Key success factors of the online brokerage industry include expansion of products and services that add value to customers, acquisition
of licenses in different jurisdictions and enhancement of user experience. To this end, we intend to continue strengthening the innovation,
security, efficiency and effectiveness of our brokerage services, including our user-friendly interface, comprehensive functionalities
and customer service capabilities. Particularly, we intend to expand our service offerings to contract for difference (“ CFD”)
trading and increase the proportion of revenues generated from them.

We also plan to continue integrating value-added
services, including asset management services to increase revenues streams. Our ability to maintain and attract new customers principally
depends on the quality of our products and services as well as our brand equity. We expect our operating cost and expenses to continue
to increase as we provide more innovative and effective products and services.

Contract for Difference (“ CFD”)

We are preparing the launch of CFD products and
services in the year of 2025. We expect to generate CFD trading revenues from (i) commissions, (ii) bid/offer spreads, (iii) difference
in interest rates. In particular, we plan to:

i). charge commissions for all CFD transactions.
The amount of commissions we charge is largely based on the trading volume, with commission rates varying between US$2.25 and US$50 per
lot, based on the per-lot value and the type of product traded, as well as discounts offered to different clients.

ii). mark up the bid/offer spreads for CFD products
on top of the prices offered by our clients, exchanges or third-party market makers, as the case may be. Our