Democratizing investment and opening it up to the uninitiated is one of the objectives of trading sites. But stock market speculation has gradually opened up to other currencies and is now accessible right out of our pocket, via our smartphones. How to invest in the stock market from a phone? What are the risks ? What does the regulation say?
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Promise of quick wins, canvassing, advertising … Today, trading affects more and more individuals and consumers are invited to invest their capital in order to increase their income. But certain practices lead to litigation and loss ofmoney considerable
What are the regulations for online stock market investing?
Determine to which financial intermediary to entrust part of its capital forinvest in the stock market can be a stressful task. So to reassure potential investors, theFinancial Markets Authority (AMF) has just listed a few checks to be carried out before investing with a stock broker.
- First thing: make sure that the company is registered as an “investment services provider” or as an investment firm. In particular, you can use Regafi’s register. The objective here is to guarantee you a recourse to the regulator (French or European) in the event of a dispute.
- In addition, know that, whatever happens, the securities you hold are your property even if they are kept by an intermediary (online broker for example). This means that in the event of bankruptcy, it is the Deposit Guarantee and Resolution Fund that compensates you up to a maximum of € 70,000.
Applications that are on the rise
With low fees and competitive offers to attract customers who seek to limit risks, applications trading offers a more fun way to understand the interests of stock market investment.
- Trade Republic offers the possibility of positioning itself on the main stock exchanges in America, Europe and even in Asia.
- eToro specializes in social trading with the ability to “copy” the investment strategies of insiders to hope to benefit from their expertise.
- Bux Zéro offers reduced prices (or even zero!) But with a fairly small amount of action.
- Degiro has obtained more than 80 international awards in the online stock market world.
What do we mean by “neo-brokers”?
In the same way as neo-banks, neo-brokers provide dematerialized services that are accessible on any device provided they have internet access.
The ergonomics are designed to meet the expectations of an audience of mobile users and their goal is to target mainly young people. Moreover, in one of his published reports in 2021, the AMF explained that more and more individuals are embarking on trading and it is more young people (with an average age of 36 years) who entrust their investments to neo-brokers.
What are the excesses of a stock market investment from your smartphone?
The ability to place orders around the clock can become addictive, just like gambling. One of the main issues in phone trading is to overlook the risk of losing capital. Because, even on smartphones and with neobrokers that facilitate transactions, the challenges of investing in the stock market remain the same and nothing guarantees returns.
The “gamification” effect which sometimes allows you to obtain bonuses on the condition that you invest regularly or small amounts of money could also lead to a significant loss of money in the event of a bad investment.
Finally, stock market investment via smartphone facilitates transactions, however the AMF recommends remaining cautious about financial news and forging a stock market culture. Indeed, it is better to be wary of disseminated investment recommendations. via the social networks for example by influencers or people who are not authorized to provide investment advice. The risk is making decisions based on informal advice and not following a reliable long-term strategy.
Article produced in partnership with Café de la Bourse
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