There has been a lot of wild action in the markets over the past year, and all the excitement is drawing in new investors. Now, to make sure they stick around, one investment platform is trying to convert these traders into long-term investors.
Let’s take a look at which platform is attempting to help new traders evolve into seasoned investors.
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Which investment platform is helping traders to ‘level up’?
Lots of new investors have been exploring the markets over the past year. Many of them are in younger age brackets and some of them have got caught up in trading frenzies.
The gamification of some apps and high levels of volatility in the market have inspired some to begin investing. Now, investment platform InvestEngine is hoping to help those new to the market to become more than just hype-based traders.
What do investors need platforms to provide?
According to InvestEngine’s research, younger participants need better tools to help them invest.
When asked how their current provider could improve things, those under 25 cited the following as their top priorities:
- 37%: Easier access to investments through apps
- 34%: Help with understanding risk
- 32%: Guidance on investing for the long term
In order to give investors more of what they want, the core pillars of the new DIY investment platform from InvestEngine are accessibility, control, and long-term investing. These features should enable young investors to level up and grow into their investing shoes comfortably.
What makes the InvestEngine platform different?
In order to plug a crucial gap in the market, InvestEngine has packed in plenty of useful features to help investors. They include things such as:
- Smart top-ups and automated investing to match your strategy and goals (as ever, be aware that investing means putting your capital at risk
- One-click portfolio rebalancing
- Handpicked ETFs for globally diverse multi-asset portfolios
- A clean, no-nonsense interface that’s easy to use
- No dealing or account fees to help you keep your costs down
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Why should an investment platform help investors?
Some companies offering investing services are not doing enough to assist with learning and education.
Andrey Dobrynin, Co-Founder of InvestEngine explains: “It’s clear that the fintech revolution has made an impression on young people and greater investment in a brighter future can only be a good thing.
“However, with boredom and media influence among the greatest motivators, the success in turning hype-based traders into long-term investors depends on fintechs providing both improved tools and adequate financial education.
“When it comes to thinking long term, 20% of 16-35-year-olds consider regularly trading hot stocks to be the best way to grow their savings, and almost half of under-25s mistakenly believe that savings accounts are among the best routes to growing savings. To realise their potential as investors, the industry has a responsibility to change this.”
It is important to bear in mind that while the potential gains may be higher, any kind of investing – and especially trading – involves the risk of losing all money invested, while money in a savings account does not carry that risk.
What makes a good investment platform for beginners?
If you are looking for somewhere to begin or continue your investing journey, then the InvestEngine platform could be a great option. Otherwise, try and make sure that the share dealing account you use provides decent learning resources. These will help you to become a better investor over time.
If you don’t want to continue with a completely DIY approach, then an investing solutions provider can be a great way to give you a helping hand with building and managing your portfolio. There is an ever-growing number of choices available that will suit whichever way you want to invest.
Using a platform that allows you to learn and grow will really benefit you in the long run. It may also help you to avoid making risky investments that could destroy your strategy.
Whatever route you take, remember that there is always going to be risk involved, so you need to consider your risk appetite and accept that you may get out less than you put in.
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