The Emerging Needs of Investors

A look at investment behaviour in the APAC area

Last month, Recognia and Trading Central hosted their third Annual Australian CEO Roundtable at the O'Bar in Sydney. This event brings together leaders within the online brokerage space for an afternoon of insightful discussion. With a fabulous view of the Sydney Opera House as a backdrop, eighteen senior executives met to share their experiences, in the spirit of moving the industry forward together. Those attending had the pleasure of seeing Investment Trends CEO, Michael Blomfield, deliver an insightful presentation on trends in the retail online broker industry.

Every year, Investment Trends conducts a global survey on investment behaviour, gaining valuable insight on their needs, geographic trends, and where the industry is heading. This unique perspective of global markets makes Investment Trends a logical partner for brokers, as a source of actionable insight on how to craft a better client experience.

Michael provided our guests with key market findings generated through Investment Trends’ 2017 global survey.

Leaders within the Online Broker industry at the O'Bar in Sydney.

Strong Concerns & Low Expectations

Investors have serious concerns right now, due to both local and foreign affairs. Their chief concern was the possibility of another global financial crisis, such as the market crash of 2008. This was closely followed by the present instability caused by the U.S. White House’s administration and China’s seemingly slowing economy.

This sense of worry is not evenly distributed. Despite rising debt and property prices, Australia’s investors ranked as the most confident within the APAC region, whereas both Hong Kong and Singapore were amongst the most concerned.

Rising worry is accompanied by lower expectations for returns when participating in the stock market. Global expectations for market return has continued to decline sharply since January 2015. Interestingly, this trend is reversed within Australia, signifying a diverging perspective with regard to expectations for the Australian economy.

Steep Barriers

The top factors impeding market growth are the lack of investing knowledge among the broader population, a lack of capital and insufficient time. In both Australia and the United States, over 34% of investors wanted more education before putting their money in the market. This hurdle was heightened when traders were questioned on technical analysis. Despite 54% of frequent traders claiming they found technical analysis helpful in evaluating appropriate investments, most felt they needed a stronger foundation in its principles. Meanwhile, 33% felt they had insufficient capital to invest and 27% felt they didn’t have enough time to find or act on trade ideas.

ETFs on the Rise

The popularity for exchange-traded funds continues to grow globally. Why are more and more investors choosing ETFs over other asset classes? Because they are diverse, simple and inexpensive. With the lack of financial education and time, these characteristics make ETFs a logical choice.

Breaking Down the Walls

At Recognia, we’re aware of the uphill battle many prospective investors perceive and aim to support their decision making in innovative ways. Our easy-to-use analytic tools identify and validate trade ideas in real-time, offering today’s busy trader the quick idea generation they need to participate in markets. We offload the time-consuming analysis and provide the insights seamlessly into their preferred application whether mobile app, notifications or investing platform.

Our educational commentary, allows investors to learn about the underlying technical analysis and chart patterns found, while features such as “Watch It”, enable them to save a trade to see how it performs over time. Collectively, these features aim to address the growing demand for education and build confident, savvy traders.

Who Will Lead?

When Investment Trends asked traders to rate the ideas and strategies provided by their broker, as many as 19% found them to be “poor”. This implies a disconnect between the unique and changing needs of investors, and what’s presently available.

As Michael pointed out “success in the future will be determined by those able to deliver the correct message to the right client in the correct moment.” This leaves personalization and timely communication with clients as the key to success.

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