Younger traders have been prominent in the markets for a while now. However, with world-wide lockdown keeping more people at home alone with their devices than ever, record volatility and market opportunities being advertised in every corner of the web, the number of traders under 30 has soared as many have been flocking to retail brokers looking to beat the market and find an additional income source.
According to a quarterly survey conducted in early July from E*Trade Financial Corp, more than half of Generation Z and Millennial investors said they’ve been trading more often since the Covid-19 pandemic began, compared with just a 30% increase for the general population.
Therefore, with more young traders in the market than ever before, the importance for high tech and app-based trading platforms is at an all-time high.
Gen Z (the demographic cohort after the Millennials, typically born within the mid-1990s to mid-2000s) were practically born with a mobile in their hands and are infinitely more comfortable and experienced with technology and social media than even the most tech savy of their parents.
The key to attracting this customer base is therefore through advanced and high-tech mobile apps, with easy to manage user experience tools and swift access to services. In line with this, many brokers have shifted their focus from large computer programmes onto compact mobile apps in order to suit this expanding customer demographic, who demand a slick user experience and to complete a trade within just a few clicks and from anywhere in the world.
Through these apps, new social features have been introduced, whereby junior traders can learn from those that are more experienced. Before these were introduced, traders often had to pay thousands of pounds to attend specialised courses and spend years gaining experience to successfully understand the markets. But now, they have easy access to online forums, or live streaming platforms with specialists and experienced traders who can help give them a quick “leg up” with helpful strategies.
A variety of trading tools is also a platform feature younger traders put emphasis on. Increasing their offering by including the latest trending new products is vital for brokers when it comes to attracting and maintaining this new generation of tech-smart traders.
Gen Z is a rising customer base, and the efficiency of mobile trading apps appears to be the next differentiator by which these customers choose their broker. Therefore, brokers must focus on mobility with increasingly convenient and available platforms that can help make the markets more attractive, accessible and enjoyable for today’s new traders.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
74.74%of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
FXCM is a leading provider of online foreign exchange (FX) trading, CFD trading, and related services. Founded in 1999, the company’s mission is to provide global traders with access to the world’s largest and most liquid market by offering innovative trading tools, hiring excellent trading educators, meeting strict financial standards and striving for the best online trading experience in the market. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. In addition, FXCM offers educational courses on FX trading and provides trading tools, proprietary data and premium resources. FXCM Pro provides retail brokers, small hedge funds and emerging market banks access to wholesale execution and liquidity, while providing high and medium frequency funds access to prime brokerage services via FXCM Prime. FXCM is a Leucadia Company.
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