Survey results confirm brokers are right to go … East


As reported by CNN and other sources, a North American financial conglomerate, namely State Street Corp has published the findings of a survey it conducted which show clearly that Chinese retail investors trade far more frequently than any nation on earth, since according to their answers a whopping 81% of retail investors in China trade at least once a month. Similarly, 73% of investors residing in Hong Kong said they trade monthly or more often in stocks, bonds, currencies and other securities.

If one compares these very high figures to the corresponding figures of 53% of Americans and 32% of French investors who reported that they trade monthly or more often, it becomes clear how right was the decision of most retail forex and retail binary options brokers and white labels to focus their efforts and energy in obtaining a foothold in the Chinese and other far eastern markets in order to expand their business and increase their client base.

In marked contrast to the vast majority of mainland Western European nations, which in no way constitute any significant part of the global electronic trading ecosystem, mainland China continuously accounts for large trading volumes these volumes are the incentive behind the resolve of brokers to enter the Chinese market despite the high entry barriers imposed by the Chinese government’s strict restrictions on overseas business.

Another reason why online trading reigns in China is the attitude of investors towards it. While, for example, American traders are more careful and take any investment decisions with the view of saving for their retirement, thus doing so in a composed and well-planned manner, Chinese traders are much more active and regular traders, who trade for the enjoyment of the experience, regarding it as a cool hobby and a great pastime, not only for retired people, but also for the young, urban population whose trading decisions show that they adopt a laissez-faire, relaxed approach towards trading and are far more willing to take risks and are continuously looking for ways to conduct business away from traditional venues.