Trading platforms / social trading platforms / signal following
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.
Attitude of the country towards trading, social trading or signalling platforms
Although trading platforms are growing fast in our country, there has been no relevant local development in the social trading segment. In Argentina, people who demand social trading services usually make use of international renowned social trading platforms such as eToro, Ava Trade or Zulu Trade.
Obligations and requirements to provide trading, social trading or signalling platforms described above
Depending on whether social trading platforms offer users the option of executing the proposed investment, social trading companies should acquire the applicable licenses from CNV to the type of financial services offered, in accordance with Argentine’s Capital Markets Law 26,831, Mutual Funds Law 24,083 and the rules applicable on each Trading Market.
Additional comments regarding the legal situation for trading, social trading or signalling platforms or what FinTech’s must be aware of in this business area
Companies which provide social trading services should be aware of complying with data protection regulations (provisions of Data Protection Law 25,326) and as regards to AML regulations, with the information and surveillance regime for “Sujetos Obligados” established by the UIF.
Market size for trading, social trading or signalling platforms and biggest companies in this business area
There is no evidence of relevant development of local social trading companies in Argentina at the time. Although trading platforms are growing and becoming popular, we are still not seeing Argentine Start-ups in this segment. As previously mentioned, Argentineans who make use of social trading platforms, use global social trading platforms such as eToro, Ava Trade, among others.
Additional comments regarding the economic situation for trading, social trading or signalling platforms or what FinTech’s must be aware of in this business area
As previously mentioned, there is no evidence of relevant developments of Argentinean Start-ups within the social trading segment. However, as trading platforms continue to grow and become popular, we expect that local companies dedicated to social trading will emerge soon.