Massive Interest in Social Trading in Asia

The number of online investors in Asia is growing, and to satisfy their needs, a company has intertwined trading and communication to form a social media platform for stock investments. While the network is just for trading, users can tweet and Facebook their trades, which are in real time on the social platform, 8 Securities. Users can also see the trades of others on the platform and use instant messaging for trading ideas. Along with social media comes “friends,” and from there, users are creating their own communities. As soon as the trades are executed, they are visible online for all to see.

8 Securities: Making Waves

The social online trading portal was launched in Hong Kong. 8 Securities CEO Mikaal Abdulla said the city was the perfect place for the portal. China’s financial markets are experiencing a growth spurt, and Hong Kong is one of the top 10 stock markets in the world. Citizens are frequently tipped off by the city’s newspapers and evening news programs. Approximately 1.8 million people are trading, and nearly 70 percent are online. 8 Securities released data of more than 30 million online accounts in Hong Kong and China at large. The figures were compared to online trading around the world. In the United States, about 20 million people trade online. Less than 10 million are online in Europe. One-third of 8 Securities clients are Chinese, and clients can access the online trading portal through China’s exclusive social network.

8 Securities does face competition. There are the traditional banks with websites. Those are expensive, Abdulla said. Large, well known brokers that are online may seem like an adversary to 8 Securities, but Abdulla points out the brokers are an outlet for US stocks only. Hong Kong’s physical brokerage houses are inviting to the elderly, who sip tea and watch screens display stock prices, however, the younger crowd is drawn to the online information. Another point of contention is the recently launched German-Swiss online trading platform that specializes in high-risk investments because China’s individual traders are willing to take more risks than those in other countries.

Fiscal Trading Restrictions

8 Securities is well aware of the restrictions on money flowing in and out of China with the central control in Bejing. One way around the restrictions is individuals can start a Hong Kong bank account. Although the bank account also faces restrictions as to how much money can be transferred, it allows investors to trade on a global scale. Chinese traders are interested in top notch tech stocks, such as Apple, Google and Microsoft.

Online Trading Blossoms

An overload of information via the Internet has redrawn the investment boundaries. Trends and financial news are available faster than the more traditional trading methods. The availability of financial data is unprecedented, and companies are in a race to manage it. The more financial data a company can manage, the better the company profits. The information is now being called, “Big Data,” which is an economic asset comparable to oil, experts say. The Big Data works on a number of levels. On one computer program, the mood of investors is monitored. If they are happy, a customer fervently buys stocks. If they are less than optimistic, the customer sells short because the share prices may decrease.

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