Investors turn to DIY trading platforms

In an environment characterised by volatility and low growth, investors are flocking to do-it-yourself trading platforms, according to easyMarkets.

Investors turn to DIY trading platforms

tlewis

Last Updated: 11 March 2016 Published: 11 March 2016

Robert Francis, managing director of forex trading platform easyMarkets, said investors are increasingly looking to DIY trading platforms to achieve "better returns".

Speaking to Adviser Innovation, Mr Francis pointed out that investors are "exploring other avenues" such as DIY trading platforms, moving away from stockbrokers and advisers.

He explained that the platform offers investors both cost-efficiency and general advice.

"Before a client trades with us, we actually want to sit down with them and discuss trading itself."

"The advice element is not so much in terms of [what to buy]; what we're doing is talking about risk management and money management. That's the advice we try and give clients," he said.

Mr Francis said the company places emphasis on ensuring that investors have strategies in place to preserve capital.

"It's very important for us to give our clients as much information as possible; have the resources to speak to somebody  - to talk about risk management [and] money management."

The platform offers a stop loss function, whereby an investor sets a price that determines the maximum amount of capital they are willing to lose.

EasyMarkets trading desk manager Andreas Tjahja added that the company advises investors to risk only two to five per cent of their capital per trade idea.

"[This is] to ensure preservation of capital and [an increase in] the probabilistic nature of each trade idea/forecast," said Mr Tjahja.

EasyMarkets currently offers access to forex, indices and soft commodities, but will offer CFDs on shares in the second half of 2016. Mr Francis also confirmed that a mobile app is set to be launched within the same period.