A era do comércio móvel.
Category: Technology
A era do comércio móvel.

In the most recent JP Morgan conference call to analysts and shareholders, the CEO indicated that a client conducted a $100 million trade from a mobile phone. If someone needed evidence that customers felt very comfortable trading through an App on a smart phone device this closes the argument.

By now is clear that advances in technology have reached a point that speed and reliability for trading from a phone are a nonissue. Technological improvements have erased most of the difference in precise and timely execution between trading from a phone and trading from a PC, and not surprisingly soon connectivity would be the same on any device.

Several industry experts have discouraged this convenient trading access, and hope it can be limited in the future. They argue that this type of trading, anytime and anywhere, can create the wrong incentives and motivate non-professional investors to trade more frequently than they should or over-trade, thus causing underperformance and additional risks (including paying excessive commissions). Obviously this group is behind the classic buy-and-hold strategy.

On other side, most people find the prior argument meritless as they argue that a non-professional may have similar access to a PC or call for an assisted trade and still have immediate access to his account. In addition, some firms such as Folionet which provides free online trading discard the argument of excessive commissions.

Aside from the previous mentioned points, we have to understand that currently the majority of potential users of these tools are gen-Xs and Gen-Ys, members of the “NOW” economy who essentially want access to products and services at the tip of their fingers; whenever and wherever. These generation seeks immediate access to any part of their daily lives, be it social media, finance, retail, news, music, among others, and is all part of a trend where they want more control of their lives, and mobile helps facilitate those interactions.

Currently, the most important shift to mobile trading in the investment sector has been in the areas of Fx, equities and options. We believe that fixed income, one of the largest markets by volume and amount of trading size, still lags behind as a great portion of the trades are executed with another live counter party. Once most fixed income trading could be executed and booked electronically, mobile trading will follow immediately, and sooner rather than later we may see the new milestone of the $1 Billion mobile phone trade. 

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