The onset of the pandemic has elevated the interest of Malaysians in retail trading, encouraging individuals to independently learn on-the-go on various digital channels. The key to success in 2023 for retail traders is smarter trading.
Philip Waters, CEO, APAC & Emerging Markets, OANDA, shares his thoughts with BusinessToday on the reimagining of the online trading journey of private investors and retail traders. “At OANDA, we understand that success is personal. The goal is different for every trader, and so is their trading style. But ultimately to be positioned for success, every trader needs to trade smarter.”
The Art of Interpreting Information in The Digital Jungle
Over the past few years, there has been a surge in market participation from non-institutional investors and traders. This means there is a greater need to empower new traders with the education and tools they need to sift through vast amounts of data and focus on actionable trading insight. How can traders make the most of the opportunities provided by data to achieve their financial goals?
Technology has revolutionised the way retail investors approach trading. It has also given them access to multiple sources of information. This, however, can be overwhelming. In a world where data is king, it should come as no surprise that traders who have access to real-time market data combined with powerful tools are better positioned to make informed trading strategy decisions.
Retail traders simply do not have the time to spend all day in front of a computer looking for well-timed market entries, determining their ideal spreads, and manually managing exits or risk parameters. Smarter trading, on the other hand, is possible with the right trading infrastructure and tools to enable traders to trade at their best.
OANDA combines award-winning technology with a proprietary trading platform and the option of trading on third-party platforms like MT5 across a wide range of CFD markets, including indices, forex, commodities, and metals, allowing clients to trade on their preferred platform. However, technology and automation cannot replace the human factor. This is why at OANDA we listen to our clients and strive to provide outstanding customer service, building the trusted relationship that traders seek, beyond tech capabilities.
Ruling Out the Reckless in Trading
Many retail traders today are self-taught, which puts them at risk of developing habits that are detrimental to long-term trading success. What are some of the barriers to success that you’ve encountered in the trading world?
The secret to success lies in education and access to insights. The strongest traders educate themselves, focus on sound strategies and leverage market data and technical analysis.
OANDA certainly leads the way when it comes to education and the resources available to our clients. We see this as a hugely important part of the service we offer and a real point of difference against other trading platforms. This is why we have a dedicated portal with a range of educational resources, such as e-books, videos, webinars, and events. These resources are designed to help new traders get started with their trading account, and learning how to use key types of analysis.
Fundamental analysis, for example, is all about determining what economic factors can affect the supply and demand of assets, as well as attempting to measure their intrinsic ‘fair value’.
Traders also learn about technical analysis, which studies price movement on charts and involves pattern recognition to determine optimal entry and exit points for trades.
Also, OANDA MarketPulse is an unaffiliated and fully independent news site that delivers round-the-clock commentary on a wide range of asset classes, as well as in-depth insights into major economic trends and events.
Trading is personal and there’s a huge emotional component to it. New traders need to learn how to control their emotions and navigate volatile markets with a clear focus, to avoid irrational decision-making that can lead to poor results.
Building Bonds Beyond Trading
A trusted broker continuously seeks to understand clients and knows that traders want a hassle-free, intuitive trading experience to be in control of their trading, whatever their preferred style may be. Has digital technology caught up with the evolving needs of traders today?
The pandemic acted as a catalyst for OANDA, compelling us to concentrate our efforts on development. It allowed us to create a best-in-class digital experience: getting the fundamentals right – everything from signing up for an account to logging in, funding, and trading – to ensure a seamless and enjoyable experience paired with powerful tools. This evolutionary shift is now the backbone of our future growth: we have evolved to provide an award-winning, multi-asset trading experience that fits in busy lifestyles. For example, our fxTrade app creates an experience that has been designed to be user-friendly for professional and retail traders alike. From a customisable interface to one-click trading, the award-winning fxTrade app enables a responsive and reliable experience.
With the rise in artificial intelligence, a large amount of trading is done using robots, and machine learning is increasingly becoming crucial in the way that traders understand the financial markets and make their trading decisions. But automation cannot erode human intervention in financial institutions. Communication is key to help build trust with traders today, providing that well-balanced, human touch on top of a robust digital and data offering.
There has also been a shift from web platforms to mobile apps, as traders prioritise the ability to trade on-the-go. This shows how convenience, trust, and value are very much front of mind for traders at the start of 2023. Our product offering and tech stack have transformed dramatically, but one thing remains at the core of what we do: the belief that technology must serve people and help unlock opportunities.
Traders partnering with OANDA join forces with a globally regulated, trusted broker with a transparent trading environment and industry-leading customer support. A great digital experience should not come at the expense of hallmark quality, personalised, and high-touch client service. We believe in prioritising the human element along with digital transformation and technology.
