Home Internet Trading clients have adopted digital platforms - Trends In Digital Trading

Trading clients have adopted digital platforms – Trends In Digital Trading

- Advertisement -

A growing number of trading clients have adopted digital platforms to execute capital market transactions, and this trend has encouraged capital market operators (CMOs) to upgrade their digital trading platforms to improve user experience. Critical to CMOs service propositions have been issues of:

  1. Transaction speed
  2. Ease of execution (payment and settlement)
  3. Customer support service (AI/FAQ)
  4. Customer education and;
  5. Market intelligence/research

The growing Nigerian digital trading experience has meant that CMOs have had to upscale technology and retrain staff to interface with customers on new platforms other than one-on-one personal contact. The deepening of the technological interface between CMOs and customers over time has improved the ease of transaction, increased customer access to market-related information, and made payment and settlement systems more efficient and effective.

- Advertisement -

Competitive imperatives have required CMOs to take the customer as the centre of their digital market space, with the customer’s trading experience being the unique measure of corporate success.

This perspective of financial markets is particularly important in the context of the fixed income debt market, which has become the largest market for tradable financial assets in Nigeria. Of the N195.09trn financial market size in 2018 N182.86trn or 93.73% can be attributed to the debt market (FMDQ) while 6.01% or N11.72trn is attributable to the listed equities market (NSE) and N0.51trn or 0.26% linked to the unlisted market (NASD).

As the millennial population grows older and becomes, wealthier, their influence over the domestic financial market will increase. The need for versatility, creativity and speed is the defining requirements of successful digital financial service delivery in years ahead. How CMOs grow their digital customer base is a reflection of this new requirement for market sustainability and profitability. Millennial clients with access to massive data, and with limited attention span and reduced patience for detail will shape the service pattern of the future.

This report evaluates the use of online trading portals. In the course of carrying out the research, a set of questionnaires were administered as a tool for getting users to assess the functionality, flexibility and speed of the portals. A total of 587 valid responses were received and subjected to statistical analyses.

The study reveals that the majority of users, about 34.42%, of these portals have monthly Income that fall within the range of N101,000 – N300,000 while about 36.24% of the respondents invest 5-10% of their income. A sizeable 66.32% of the respondents expect capital appreciation when choosing an investment option while 60.65% of the respondents prefer to invest for long term.

Out of 586 respondents, 18.66% of them use the Meritrade Platform which represents the highest percentage among our survey respondents, 12.46% use Mytradebook while 10.92% use Investnow. Capex Trade and WSTC e-Trader both have the lowest percentage with 0.17% of the users recorded respectively. 57.66% of the users of these portals look out for Easy Trade Execution and 76.15% of the users usually trade in Equities.

52.85% of users said that the portals met their needs while 67.18% conceded that their brokers were very responsive to their queries. Despite these positives, users admitted to experiencing a few challenges as 17.09% of the respondents confessed to not being able to use certain features of their brokers’ platforms.

A review of the ranking summary from previous online trading report reflected that EasyTrade, InvestNow and CordrosTradeButton emerged 1st, 2nd and 3rd respectively in H1 2016. Meritrade, EasyTrade and Afrinvestor emerged the top ranked in the H2 2016 edition of the report while Meritrade and EasyTrade maintained their ranking position in the 2017 edition with the exception of Mytradebook replacing Afrinvestor in the 3rd position. The 2018 edition saw Mytradebook, Meritrade and EasyTrade emerged top three (3) in that order. In 2019, therefore, the top ranked were Mytradebook, Meritrade and InvestNow.

Similarly, a review of the ranking summary for FX trading platforms from previous online trading report reflected that MeriFX and ForexTime emerged 1st and 2ndrespectively in the 2017 edition while Eagle Global Market, Alpari, and ForexTime CordrosTradeButton emerged 1st, 2nd and 3rd respectively. In 2019, therefore, the top ranked were Eagle Global Market, ForexTime and HotForex.

According to users, brokers can improve on their services by providing better research reports and the ability to trade other securities asides equities to their respective clients. This is expected to further improve and change users’ perspective positively as 85.12% of respondents affirmed that their online trading experience has changed their perspective about trading and investing in the Nigerian Financial Market.

FOLLOW US ON TWITTER SUBSCRIBE TO OUR YOUTUBE CHANNEL
alltechng
Technology is making life more meaningful, improves productivity... We are tech lovers...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Minister assures federal universities of stable power supply

FROM: Pulse The Minister of Power, Alhaji Sale Mamman, has assured that the present administration was determined to ensure that all the federal universities enjoy...

Saudi stock exchange slumps after oil facility attacks

FROM: PUNCH Saudi shares slumped at the start of trading Sunday, the first session after drone attacks on two major oil facilities knocked out more...

Reactions to attack on Saudi oil facilities

Yemen’s Iran-aligned Houthi group on Saturday attacked two plants at the heart of Saudi Arabia’s oil industry in a strike that could impact about...

Bishop Kukah disowns Facebook account, vows to tract perpetrators

FROM: Sun News The Catholic Bishop of Sokoto, Most Reverend, Matthew Hassan Kukah, has disowned Facebook account opened and operating on his name by some...

T. Boone Pickens Saw How Fast Energy Markets Could Change

FROM: Bnnbloomberg T. Boone Pickens, the legendary American oil entrepreneur who died this week at 91, was known for his aggressive corporate plays in the 1980s...