First-time investors increasingly looking to online trading

Dubai - Cryptocurrency is now the newest and most efficient addition to the digital payment industry, with mainstream financial businesses from Paypal, Visa, MasterCard, and Square getting into Bitcoin

First-time investors are increasingly looking into online trading as a way of earning extra income thanks to new regulations that are designed to protect them and their investments, experts have revealed.

“When it comes to online trading, there’s no arguing that some people are still reluctant, especially the millennial generation; however, as we are witnessing in the past few years, people have started to overcome that fear and now have a better understanding of the profit they can generate from trading the markets and the risks that comes with it,” Madalina Rotaru, CEO of Key Way Markets, told Khaleej Times.

She also highlighted how CAPEX, a global brand operated by Key Way Markets, has set a goal of changing the way people in the Middle East invest, by making online trading more accessible, rewarding, and secure in the region. “Since opening our strategic location in Abu Dhabi, CAPEX, which is regulated by ADGM, CySEC, FSCA, and FSA continues to offer an authentic, one-of-a-kind, trading experience. Whether dealing with professional or retail traders, CAPEX always endeavours to develop new products and services that innovate and improve the way people invest.”

The CAPEX team is primarily focused on helping clients learn how to trade and acquire the knowledge and experience needed to change the markets, by providing them with an extensive range of educational material, online trading courses, and video tutorials. The platform was recently named as the “Best FX Online Trading Platform” at the latest Forex Expo 2021 in Dubai.

Rotaru noted that the Internet has had a massive impact on investing, especially for retail investors, by introducing electronic markets and automatic order execution. Mainly, it is the easy access to financial markets, she pointed out. “The Internet’s fast growth and improvement when it comes to cost and speed has lowered the barrier to enter the markets, making it easier for people to start trading within a matter of minutes. In addition, there are now many online resources that people can take advantage of to work on their trading skills and get insights from market experts.”

The Internet's effect on lowering fees for retail investors is another factor to add to the list, she added. In the past, full-service brokers were able to exert their control over the market and charge what now seem like exorbitant commission rates.

Looking back, she noted that the market has seen a series of unpredictable social and political events that have affected market volatility in recent years. The price swings that the world experienced since early 2020 have been considered crucial on the financial market. The global economic downturn caused by the outbreak of Covid-19 with a worldwide lockdown, and the US election, have had a massive impact on the markets and resulted in high volatility levels. As a result, the online trading industry became densely populated and saw a lot of trading activity.

“High volatility levels driven by these events raise traders’ interest to invest in the market, while minding the risk that can be accompanied,” Rotaru explained. “Thanks to FinTech companies like CAPEX, offering innovative and intuitive mobile and desktop trading platforms, it is now much easier for people to step into the financial markets and start their trading journey. I think it’s safe to say that the global economy is inevitably moving towards a digital ecosystem. As we can see, for instance, the world's biggest banks are starting to accept Bitcoin as a payment method.”

She also noted that the markets are shifting to a more digital and paperless world when it comes to investment or payment methods. Cryptocurrency is now the newest and most efficient addition to the digital payment industry, with mainstream financial businesses from Paypal, Visa, MasterCard, and Square getting into Bitcoin. Some of the main factors behind the cryptocurrency gaining its popularity, she said, is the media frenzy over its boom in value – from celebrities who invest in Bitcoin like Elon Musk, to a highly engaged crypto community on social media that feeds into Bitcoin’s popularity.

“Another reason that will keep people interested in cryptocurrencies is the comparisons between Bitcoin and gold,” she said. “And like gold, some cryptocurrencies can hold their worth during times of economic stress or rising inflation.

rohma@khaleejtimes.com