FX has long been the most popular trading product for novice and professional traders alike. Due to its low cost of entry, high margin availability, 24-hour market open. The ease of use on widely known platforms such as MT4.
It has been the bread and butter of online brokers worldwide for over two decades. It has also been relatively easy to gain liquidity, but clients are stating this alone is not enough.
Cast your mind back to the old British pubs where beer was the mainstay. Your best option of a meal there was a packet of pork scratchings. Then times changed, people wanted to eat as well as a drink so pubs added bar menu.
Pubs even made space for those wanting to sit and eat rather than drink. This kept them moving with the times and giving customers what they wanted. Online brokers offering just FX are the pubs of yesteryear and clients require more when choosing a broker.
Indices and Commodities are still highly sought after but the growth market is stocks and here’s why:
Technology has made information more freely available than ever before in our lifetime. With it has come to an array of blogs, social media experts, and readily viewable earnings and analysis on almost any listed company around the world. This used to be limited to those institutional traders with a Bloomberg or Reuters terminal but not any longer.
If you pair this with the ESMA leverage limitations on complex products (FX and Indices being limited from 200/400:1 down to 10/30:1).
Then the 5:1 leverage on stocks suddenly seems much more viable. Especially with the increased volatility in the markets, which is what every trader wants.
Traders also want to feel part of a movement, especially so in this social media-driven environment. So it’s almost a status symbol to say they own Tesla stock from last year. As well as have a stock portfolio, when the news is full of stories of all-time highs in the stock market.
Related: The Complete Social Trading Guide
With this in mind, traders don’t really want to trade a CFD of stock. It’s not like having the real thing. It’s like renting a car rather than owning it, it just doesn’t quite feel right.
They [the traders] want the option to listen in on the company’s AGM and cast their vote when required. Feel part of the companies they invest in, and even take dividends.
Some brokers have started offering Shares but as CFDs. Few offer real shares.
Tradeview is one of those few.
Tradeable on the world’s most widely used trading platforms via Metaquotes. With MT5 you can trade and hold your stock portfolio whilst simultaneously having the option of hedging positions using Indices or Commodities on the same platform. And you can trade on the move with Tradeview’s MT5 mobile app.
Bank of America recently quoted that. “global investors have put more money into stocks in the last 5 months than in the previous 12 years combined”. And inflows have proven this so now there is an easy option to take part in the stock market with a straightforward trading platform at an extremely competitive price.
To find out more please click here to download a demo or live account and see for yourself https://www.tvmarkets.com/en/
Head of UK Business Development