Why More and More Millennials are Becoming Financial Traders

CIOReview Team | Monday, 15 April 2019, 04:43 IST

Why More and More Millennials are Becoming Financial TradersMillennials are those people who not only grew up within the latest technology, but they were born with it. Technology has always played a key role in their everyday life, it’s part of their life.

It is quite true to say that everyone trades, especially the millennials. According to research, this new generation trade so much but invest less. Why is this? Because of fear and technology. Also, because millennials lack enough capital to set aside for investments.

WhatSets them Apart from the OtherGeneration

We can say that millennials are the first digital-native generation. They are the most connected generation. In this digital world, everything happens so first, and Millennialsseem to like this. This tech savviness has made them trade more on financial markets.

Furthermore, the new generation doesn't want to be left behind in the traditional world of finance. You see, in the 21st century. People who wanted to move their funds had to go through agents or banks.Butwith finance technology, consumers can engage with each other directly. Banks and intermediariesbecome obsolete.

So, why are more and more millennials becoming financial traders? Buckle upand let’s dive deep into this article and find the answers.

Online Trading

Online trading is now a common term in many households. Its popularity continues to widen especially among young folks. Online trading platforms have been widely embraced by millennials due to the popularity of smartphonesin this generation.

Online trading is associated with the reduction of transaction cost and high fees associated with the traditionalbrokerage systems.

Online trading brings trading to your own hand. It also,eliminates any possibility of brokerage bias. In traditional trading, brokers offered financial advice that favored them. With online trading, the possibility of dealing with biased agents who work to benefit from your investment is removed.

Furthermore, online trading offers investors a chance to monitor their own investments in real time. This is all made possible by use of interfaces which enable investors to see how their money is performing throughout the day. Millennials enjoy online financial trading as it offers no limit to their investment.

Digitals Currency

A study has shown that most millennials still haven’t grasped the concept behind the stock market. That’s why most of them do not invest in it. Also, they lack enough funds to invest with. Most of them trust cryptocurrency more than the stock market.

Despite the gloom in the crypto investment markets, the demand for digital currency stillremains high. Why is this? It’s because transactions are becoming less expensive and easier, and a large number of people are willing to utilize cryptocurrency for personals and business use.

Digital currency is dependent on new technology, and we all can agree that millennials are largely attracted to utilizing the newest technology. The market shows that the biggest demand for digital currency comes via people within the age brackets of 18 and 34.

Younger generations understand this better than the prior generations. Also, they comprehendimprovements associated with the digital currency sector than most. That’s why the number of millennialsinvesting in cryptocurrency is increasing.

New Technological platforms

The availability of financial resources has evolved and risen due to trading companies coming up with new technological platforms. Such technologies are the likes of trading applications and websites. Now millennials can access real-time information more quickly than their prior generations.

Specific apps such as Metatrader 4 mobile app download, provides financial traders with charting tools that make it simple to access the global markets. Millennials enjoy these apps because they are easy to install and use. Also, by using these apps traders can easily enter trades on the go.

Availability of Time

Time is one of the resource millennials have on their side. Those people who start financial trading in their early twenties and thirties have a higher potential of accumulating wealth than their older counterparts.

In addition, they can learn from their experiences and still have enough time to build up resources after accumulating knowledge of some expertise. Instead of making their investment decisions in their forties, they can harness the information and make more effective financial trades.

Trading is easier today than ever and everyone in this digital generation wishes to join. Lack of funds is not an excuse anymore, and those youths with little amounts of capital can start trading today. Additionally, financial trading is so quick and you don't have to wait for a lifetime to earn your returns.

Millennials are always taking matters to their own hands. They are always interested in making a difference in their lives. They tend to be progressive and oppose control as they should. All these characteristics give them a distinct advantage when it comes to financial trading such as being enthusiastic to learn and utilize technology to make informed decisions.

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