A majority of retail investors (69%) are feeling confident about their
investment portfolio despite the prolonged bear market that troubled financial markets in 2022. This comes as more investors feel more relaxed about
the perceived threat of inflation.
Also, most retail investors (67%) feel positive or have mixed
feelings about the downturn recorded last year. The remainder (33%) report that
their eagerness to invest has been impacted to some extent.
These are some of the findings of the latest Retail Investor Beat report released on
Wednesday by social trading platform
Trading Platform
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
Read this Term eToro.
The firm said the fourth
quarter 2022 edition of the report is based on a survey of 10,000 retail
investors drawn from 13 countries and three continents and was conducted between 14-24
December 2022.
📣 Our latest quarterly #RetailInvestorBeat is out and there IS light at the end of the tunnel.
⬆️ Confidence is up
💷 People are investing more
📊 Younger investors are feeling positive about their portfolios
Get the full scoop 👇
— eToro (@eToro) January 18, 2023
The study, which was conducted in partnership with research company
Appinio, selected respondents from the US, the UK, Germany, Australia, France, Spain
and Italy. It also drew respondents from Denmark, the Netherlands, Poland,
Norway, the Czech Republic and Norwary, eToro said.
Watch the recent FMLS22 session on trading in an era of social media.
According to the report, a majority of young retail investors appear to be more
risk tolerant as 76% of them between the ages of 18-34 report feeling
positive or indifferent about the 2022 downtrend. On the contrary, only 60% of
older investors above 55 years old feel this way.
“2022 will have been the first major bear market for many less
experienced retail investors, yet the data shows that it is older investors
with shorter retirement time horizons who are feeling the strain the most,”
eToro explained.
However, the report notes that since about a quarter (22%) of the investors see a
global recession as the biggest risk to their investment, many are adjusting their portfolios to
include more defensive assets like healthcare and utilities. As a result, cash
allocation has climbed by 50%, eToro said.
“In preparation for this recession risk, many are adjusting their
portfolios defensively whilst also preparing for future opportunities. The
proportion holding cash assets (e.g., savings account) jumped from 46% in Q3 to
69% at the end of Q4 – a 50% increase,” eToro said.
In its quarterly report published in July last year, eToro found that while 64% of
retail investors held on to their investments, about 28% bought the dip during the
stock market sell off at the time.
A majority of retail investors (69%) are feeling confident about their
investment portfolio despite the prolonged bear market that troubled financial markets in 2022. This comes as more investors feel more relaxed about
the perceived threat of inflation.
Also, most retail investors (67%) feel positive or have mixed
feelings about the downturn recorded last year. The remainder (33%) report that
their eagerness to invest has been impacted to some extent.
These are some of the findings of the latest Retail Investor Beat report released on
Wednesday by social trading platform
Trading Platform
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
Read this Term eToro.
The firm said the fourth
quarter 2022 edition of the report is based on a survey of 10,000 retail
investors drawn from 13 countries and three continents and was conducted between 14-24
December 2022.
📣 Our latest quarterly #RetailInvestorBeat is out and there IS light at the end of the tunnel.
⬆️ Confidence is up
💷 People are investing more
📊 Younger investors are feeling positive about their portfolios
Get the full scoop 👇
— eToro (@eToro) January 18, 2023
The study, which was conducted in partnership with research company
Appinio, selected respondents from the US, the UK, Germany, Australia, France, Spain
and Italy. It also drew respondents from Denmark, the Netherlands, Poland,
Norway, the Czech Republic and Norwary, eToro said.
Watch the recent FMLS22 session on trading in an era of social media.
According to the report, a majority of young retail investors appear to be more
risk tolerant as 76% of them between the ages of 18-34 report feeling
positive or indifferent about the 2022 downtrend. On the contrary, only 60% of
older investors above 55 years old feel this way.
“2022 will have been the first major bear market for many less
experienced retail investors, yet the data shows that it is older investors
with shorter retirement time horizons who are feeling the strain the most,”
eToro explained.
However, the report notes that since about a quarter (22%) of the investors see a
global recession as the biggest risk to their investment, many are adjusting their portfolios to
include more defensive assets like healthcare and utilities. As a result, cash
allocation has climbed by 50%, eToro said.
“In preparation for this recession risk, many are adjusting their
portfolios defensively whilst also preparing for future opportunities. The
proportion holding cash assets (e.g., savings account) jumped from 46% in Q3 to
69% at the end of Q4 – a 50% increase,” eToro said.
In its quarterly report published in July last year, eToro found that while 64% of
retail investors held on to their investments, about 28% bought the dip during the
stock market sell off at the time.
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