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Trading platforms / social trading platforms / signal following
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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
Please see the section regarding asset and portfolio management services.
From a regulatory perspective, there is some caution about social trading platforms and signal following because of concerns about whether this results in investors making suitable investments, or may lead to consumer harm.
Legal affairs
Obligations and requirements to provide trading, social trading or signalling platforms described above
Please see the section regarding asset and portfolio management services.
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
N/A
Economic conditions
Market size for trading, social trading or signalling platforms and biggest companies in this business area
The market breakdown for social trading / signalling platforms is not discernible. See Payment Services section for a more general overview of the FinTech sector.
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
N/A