A survey recently conducted found most Kiwi investors rely on information from online forums (48%), news (47%) and people they know (36%) to make their investment decisions, as opposed to professional sources such as brokerage firms (19%), financial advisors (6%) and investment experts (3%).
It only takes a few taps to get started with today’s best investment apps. Individuals can get a tailored portfolio or trade their own stocks, track the performance of their portfolio, and move money around without ever conversing with another person. And, since both traditional brokerages and fintech start-ups provide investing apps, users are bound to find one which is suitable to carry investment activities.
In New Zealand, a new share market advice app has recently been launched that provides users with professionally researched analysis and recommendations on their mobile, desktop, or tablet device to assist them in successfully investing in the stock market.
“The reliance of this new generation of investors on advice from questionable sources like social media groups, relatives and internet memes puts their money at quite some risk. And given the practice is so widespread, poses a major economic risk to society more broadly,” the developer noted.
The web-based programme was developed to alleviate the confusion and anxiety that many people experience when deciding which stocks to buy and when to sell. It distinguishes itself from other share apps by offering professional advice – our analysts hold a Financial Advice Provider licence – as opposed to brokerage services, which leave investors to decide which shares to buy.
“While other platforms make it easy to buy and sell shares, they don’t resolve the critical decision of what to buy. We do,” says the app founder. “And in doing so, we ease people’s anxiety, reduce their confusion and help mitigate the risks,” he adds.
When trading online, investors typically rely on their own investment knowledge and experience, as well as information posted on the platforms, to choose products and make their own investment decisions. Investors may not be able to fully understand the nature and risks of an investment product without assistance prior to deciding whether to invest if they do not interact with a sales or advisory representative. Aside from that, system errors may occur. If this occurs, investors may lose critical market access and trading opportunities during periods of high market volatility and around market opening and closing.
The app’s other major distinction is that it recommends when to sell the shares previously recommended for purchase. The majority of other advice providers only make buy recommendations as part of a long-term buy and hold strategy. The app instructs users on when to take profits or stop-losses because of market movements, usually after a few weeks or months. The app’s entry into the market comes at an opportune time, as the number of people investing in stocks online has exploded in recent months, but most are doing so without conducting thorough research and analysis from credible sources.
The company tackles this by making professional market advice and analysis available to everyone, traditionally only to those at the top of the town. The existing high-paying exclusivity of the institutional investment consulting profession marks a significant disturbance.
The company, in contrast, gives advice for the main stock markets in New Zealand, Australia and the United States. Users receive them via mobile, desktop or tablet notifications. The developer and his team of analysts generate guidance based on the demonstrated inventory evaluation standards that he has created and refine in the last 25 years. Users pay a monthly subscription fee or receive the tips for free if they open and fund an Interactive Brokers brokerage account through the app platform.
