What the Modern Investor wants and Empowerment of Them
Date 17 August 2023
Finance Magnates met with Dominic Poynter,
recently appointed Chief Marketing Officer at HYCM, to discuss industry
trends and the company vision moving forward.
How have investing dynamics been changing and what does it mean for the industry?
global capital markets industry is seeing a rise in retail investing
with significant growth noticeable after the pandemic. This major trend
is here to stay and shape the future of financial services. In fact, it
is projected that the number of assets non-professional investors manage
will be over 61% by 2030, making the retail investor one of the major
participants to move and influence the markets. Although this may seem
like good news for FX and CFD brokers like us, it comes with certain
challenges for individual investment service providers, as well as for
the industry as a whole.
investors are becoming more sophisticated and demanding, and the
industry needs to adapt to meet their needs. This includes providing
easier access, better trading conditions, new types of products, and
simplified trading platforms. New technologies are here to help but
brokers must have the resources and flexible structures needed to keep
up with its rapid developments to stay competitive.
according to several reports, there is a financial literacy gap among
retail investors. The majority are eager to learn, but there are still
many new investors who do not know where to start. This tends to be the
most common hurdle to individuals beginning their investment journey.
Moreover, those who already hold assets admit that their knowledge is
limited too. Therefore, the industry needs to find ways to help
investors navigate the volatile markets and provide educational
resources to close the financial literacy gap.
lastly, as investors seek long-term financial security, trust becomes
one of the key factors in deciding in favour of or against investing.
The industry should strive to create a favourable reputation, and this
is only possible if individual financial institutions take steps to
protect their clients by being transparent and trustworthy.
sum up, we believe that easy access, financial education, and trust are
the key areas to focus on to build a responsible ecosystem that
supports the empowered investor.
There are plenty of educational materials available online, why is there still a financial literacy gap?
financial literacy gap among investors is still a significant problem
because many of them lack a basic comprehension of the financial markets
and trading concepts, which can lead to poor trading decisions and
financial losses. And although there are educational materials available
online, there are a couple of things that are not taken into
consideration. Retail investors need access to high-quality educational
resources that can help them understand the risks and rewards of
investing. Many of those who offer educational material provide limited
and fragmented material that often does not aid the learning process.
the internet, where literally anyone can be an “expert”, becomes the
number one source of information, it is becoming increasingly important
to use only reliable and vetted sources. Also, more people are now
gathering information through social channels and video content, so
education providers must follow these trends and offer content in the
preferred formats and channels if they wish to reach their audience.
the information should be simplified. The use of complex financial
vocabulary and trading terminology can often make it difficult for
investors to access and understand the material.
we plan to address all these factors and are working on a one-stop
solution for financial education which will be available in the near
future. We currently offer educational courses, regular online webinars
and workshops, in-person seminars, and one-on-one coaching, and our HYCM
Lab blog provides vast information on how the financial markets move.
Our clients also have access to premium trading tools including signals,
a research terminal, and calendars to facilitate smarter trading
What steps have you taken to provide easy access to investing so far?
may think that retail trading is already widely accessible but while it
is certainly more accessible than before, there are still many boxes
that need to be ticked, such as providing simplified trading technology,
lowering costs, as well as offering innovative products.
year we launched our own proprietary mobile app, HYCM Trader, which
combines our client portal and trading functionality, enabling users to
register, create and manage accounts, buy and sell financial products,
and deposit and withdraw, all within one unified environment. It is a
remarkably simple app to use with a modern interface, responsive charts,
and enhanced functionality, providing easy access to the financial
We also now offer over a thousand world-leading stocks to invest in with zero commission [1, 2],
thus lowering the barrier to entering the equity market. Our clients
can invest in their favourite companies including big names, such as
Netflix, Microsoft, Tesla, Starbucks, Disney, and Nvidia, buy fractional
shares for as low as $10, and earn income from dividend-paying stocks.
addition to that, our major FX and bullion instruments now feature
updated spreads on all account types, some as low as 0.1 pips, to offer
the best possible trading terms to our clients.
Another notable mention is that our clients can invest in the most popular cryptocurrency CFDs , as well as deposit in their preferred coin.
What is the role of trust in the financial industry?
world of investing is highly dynamic, and risk and volatility are two
aspects which must always be taken into consideration. As investors seek
long-term financial security, trust emerges as a key factor in shaping
their decision-making process. Therefore, investors place immense value
on the reputation and credibility of financial institutions before
committing their hard-earned capital.
So, it is
imperative for financial institutions to prioritise building trust and
transparency, protecting their clients’ interests, and establishing
clear communication to build long-lasting relationships with investors.
As the industry strives for further growth and development, the trust
factor will remain a key determinant of success. Embracing a culture of
trust will not only benefit investors but also foster a robust and
sustainable financial ecosystem for all stakeholders involved.
45 years of cumulative group experience, HYCM has established itself as
an industry expert renowned for its excellence and recognised as one of
the most reliable brands in the industry. Operating from strategically
located offices in major financial centres, including the UK, Cyprus,
UAE, Kuwait, and Hong Kong, HYCM extends its exceptional services to
clients worldwide. Regulated by the world’s leading regulatory bodies
including the FCA, CySec, DFSA, and CIMA, HYCM offers a safe and secure
environment to invest in new and traditional financial markets.
commitment to client protection and maintaining the highest industry
standards is evident through measures such as segregated accounts in
Tier-1 Banks , the provision of client fund insurance through FSCS & ICF, compliance with MiFID, negative balance protection, VeriSign encryption, and fair trading practices.
conclusion, focusing on areas of access, education, and trust presents
an opportunity for the financial services sector to enhance its support
for retail investors, helping them to realize their financial
aspirations. At HYCM, we strive to embrace these pillars to empower
modern investors with the tools, knowledge, and confidence needed to
navigate the complexities of the financial markets.
products & services mentioned herein may or may not be available to
all clients depending on which HYCM Capital Markets Group entity their
trading account(s) adheres to.
2 Other fees may apply such as withdrawal fees, dormant account fees, swaps, and spreads.
3 For FCA, CySEC, and CIMA clients.
4 Protection by Financial Services Compensation Scheme for FCA clients and the Investors Compensation Fund for CySEC clients.
HYCM is the global brand name of HYCM Capital Markets (UK) Limited,
HYCM (Europe) Ltd, HYCM Capital Markets (DIFC) Ltd, HYCM Ltd, and HYCM
Limited, all individual entities under HYCM Capital Markets Group, a
global corporation operating in Asia, Europe, and the Middle East.
High-Risk Investment Warning: Contracts
for Difference (‘CFDs’) are complex financial products that are traded
on margin. Trading CFDs carries a high degree of risk. It is possible to
lose all your capital. These products may not be suitable for everyone,
and you should ensure that you understand the risks involved. Seek
independent expert advice if necessary and speculate only with funds
that you can afford to lose. Please think carefully whether such trading
suits you, taking into consideration all the relevant circumstances, as
well as your personal resources. We do not recommend clients post their
entire account balance to meet margin requirements. Clients can
minimise their level of exposure by requesting a change in leverage
limit. For more information, please refer to HYCM’s Risk Disclosure.
What the Modern Investor wants and Empowerment of Them
material is considered a marketing communication and should not be
construed as containing investment advice or an investment
recommendation, or an offer of or solicitation for any transactions in
financial instruments. Past performance is not a guarantee of or
prediction of future performance. HYCM does not take into account your
personal investment objectives or financial situation. HYCM makes no
representation and assumes no liability as to the accuracy or
completeness of the information provided, nor any loss arising from any
investment based on a recommendation, forecast, or other information
supplied by an employee of HYCM, a third party, or otherwise.