Leveraging technology and AI for safer and smarter share trading

Provided by Moomoo

Online share trading is thriving in Australia, with investors gravitating towards digital platforms that offer convenience, low fees, advanced tools, and educational resources. Matt Wilson, Chief Market Strategist at the global share trading platform moomoo, highlights that 70% of their survey respondents expressed an intention to trade more frequently in 2023, with 84% planning to transfer more funds into their trading accounts.

However, these intentions come with risks that investors must consider:

1. Security and fraud risk
Online platforms can be vulnerable to cyberattacks and fraud, potentially leading to financial losses and data breaches.

2. Regulatory risk
Online trading platforms are subject to ASIC regulations, and investors need to stay informed about changes that could affect their investments.

3. Technical risk
Technical issues or platform downtime can disrupt trading. A reliable technical infrastructure is vital to avoid missed opportunities.

4. Hidden fees
Some platforms may have hidden costs, such as deposit and withdrawal fees, account fees, exchange fees, margin fees, and additional platform charges.

Mitigating risk
Moomoo’s platform incorporates robust security features like two-factor authentication and encryption. User funds are also held in a segregated trust with HSBC, safeguarding them in case of insolvency. The platform accommodates over 21 million users globally, providing quick order placement and real-time market data. Pricing transparency is emphasized, with fees and charges clearly outlined on their website.

Consider depth of functionality
Evaluating a platform’s functionality and user experience is crucial. Earnings information is often dispersed across various sources, making it easy to overlook crucial updates, especially during earnings season. Moomoo addresses this by introducing an earnings calendar that consolidates information on earnings reports. Users can track earnings dates, book analyst calls, and filter information by markets, release timings, and stock types.

AI-enhanced decision-making
Moomoo leverages AI to provide users with personalized investment recommendations, including Trend Projection that turns candlestick patterns into insights, Market Monitor alerts in case of unusual market movements, and curated news and research to filter out market noise and offer targeted insights.

A prudent approach
While online share trading’s popularity grows, Matt Wilson advises investors to approach it prudently. The benefits of accessibility and convenience make it an attractive option, but due diligence and professional advice remain essential components of sound investment decisions.

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This article is general information and does not consider the circumstances of any investor or constitute advice. Information in this article does not constitute an offer or inducement to enter into any investment activity. Material published in SIAA Newsroom is copyright and may not be reproduced without permission. Any requests for reproduction will be referred to the contributor for permission.