A new generation of neo-brokers offer their clients the opportunity to invest in the stock market directly from their mobile phone. What should we think of this trend? And how to choose your mobile broker?
Disintermediation & Automation: the arrival of neo-brokers
Over the last 5 years, neo-banks have revolutionized consumer habits by allowing them to manage their accounts and make payments directly from their mobile phones. Neo-brokers are taking the lead in the investment industry by facilitating the disintermediation and automation of the current system that previously relied on investment banks, market operators, wealth management advisors and brokers, as well as multiple intermediaries.
Increasingly, investors seem to expect to be able to manage their investments anytime, anywhere. Above all, they demand access to the best products at the best price and more transparency.
The craze for neo-brokers was born in the United States and Asia, with players whose practices are sometimes controversial. New European players are also beginning to attract a growing number of investors, especially in Germany and the Netherlands, with their intuitive interface and technological advances that enable them to offer better, faster and cheaper services.
However, beware, investing is not a game.
Investors put their savings on the line. In the past, some new online players of dubious origins have already tried to push apprentice traders towards risky products such as CFDs (Contract for Difference), for which they have been called to order by the AMF (Autorité des marchés financiers). It is therefore important to choose your mobile broker carefully.
Criteria for choosing a good broker