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FinTechs belonging to this category operate trading platforms or online marketplaces for investment opportunities or certain financial contracts – e.g. securities, factoring etc. and sometimes furthermore provide contact to financial experts and tools for the decision-making.
FinTech-signalling and social trading platforms provide users with the opportunity to exchange opinions on financial investments and offer signal providers and traders the possibility to make their securities portfolio publicly visible. This way the portfolios can be linked to and followed by other traders via the platform automatically, so that the trading and investment strategy of the followed traders can be copied.
The platform often cooperates with a financial services provider or a credit institution where both the trader and the follower hold their securities accounts, and which execute the orders both of the trader and the follower and to which the platform passes on the trading decisions.
Introduction
Attitude of the country towards trading, social trading or signalling platforms
Colombia is a 50 million consumers market that must be explored. Yet, the general concern is safety of the transaction. There is a lack of confidence of customers when trading on the Internet looking for investment opportunities.
While the pandemic accelerated the adoption of mobile trading and attracted thousands of first-time investors to platforms offering access to cryptocurrencies, commodities like gold and oil, and FX markets, this rapid expansion has also exposed many Colombians to misleading information and unregulated operators. Social media has become a major entry point for retail traders, but it is also fertile ground for fake success stories, unrealistic promises, and fraudulent “financial influencers.” As highlighted by market experts, the key challenge is to close the knowledge gap through proper investor education and stronger local regulation of brokers and trading platforms. Enhancing transparency, enforcing licensing requirements, and promoting responsible use of digital trading tools will be crucial to build trust and unlock the full potential of this growing market.
Legal affairs
Obligations and requirements to provide trading, social trading or signalling platforms described above
Companies intending to operate trading platforms or online marketplaces for investment opportunities or certain financial contracts (e.g. securities, factoring etc.) must comply with several requirements stated in Colombian law. The specific requirements depend on each specific security to be traded.
Trading services are subject to the conditions set out in Decree 2555 of 2010 related to the offering of financial services in the Colombian territory.
Foreign financial services offered through these platforms can only be promoted in the Colombian territory through representative offices, brokerage firms or financial corporations, under the terms and conditions established by the Colombian Superintendency of Finance
The Colombian Superintendency of Finance has stated that to operate in the Forex (foreign exchange service) market, the investors enter into an agreement directly with a foreign entity, with his/her own resources and assuming the consequences of the investment decisions.