Kiwi Investors who use online investment platforms have revealed that they are more likely to continue with online investment platforms than to access financial markets.
New Zealand’s Financial Markets Authority (FMA) recently published the result of its survey, which indicated an increase in interest for online investments compared to other investment platforms.
The research was carried out by the regulator in collaboration with Kantar Public, a data and consulting firm.
More investors are trooping online despite the risks
When it comes to risk, the online investment platform always presents a lot of challenges to users and regulators. But with the increased regulatory standards, such risks have been reduced drastically. Now more people are confident in placing their money on securities via online platforms.
The report also revealed that the surveyed investors consulted at least four sources of information before finally taking their investment decisions. Everett added that the investors are encouraged as they are making high returns due to the high market rally.
Online platforms provide ease
According to the published data, about 80 percent of the surveyed investors favor going online to access investing and financial markets.
From the report, about 31 percent of the respondents stated that they enter an investment due to Fear of Missing Out (FOMO). They opined that new investments are usually more profitable at their inception rather than joining late. 45% of the respondents agreed that they invested in shares through an online platform.
Chief Executive Officer of FMA NZ, Rob Everett, commented on the research results. He stated that the investors are choosing online platforms over other options because they have introduced simplicity to investments. Everett added that the platforms provide enormous resources for people to easily learn about the market and buy their shares at any time.
The result of the survey also showed that 34 percent of the surveyed investors agreed that they have learned a lot about investing from online platforms.
The majority of those that invested online are holding them for the long term. Again, it shows an increasing level of trust they have in the online platforms.
Everett says the convenience of the online platform is making more people patronize them.