The market trends are facing a high make-shift in 2021 and that is enough to catch the attention of the regulators. The biggest concern which arises from this is how much is there for the traders to take complete benefit of the ample of new apps, free trades, and advanced tools. The FCA regulated brokers in the UK showed concern about the future of the upcoming trade market integrity in 2022 and beyond.
We have gathered five takeaway points in total for you as a study of future market trading trends and how you can accelerate further in it.
Modern Traders and the Role Of GameStop Frenzy
In one year alone from 2019 to 2020, the rise in new accounts is 137 percent, which is simply enormous. Most of the accounts are run by an average of 20 years old. As the craze of market trading is violently increasing, we will see even more rise in 2021. The GameStop trading frenzy is mostly behind this boosted by social media advertisements.
While we put it on GameStop, the SEC proved that the price surge was caused by the individual retail investors functioning through social media.
The Rise of Influencers
The scene is created mainly by the social media influencers who entered the financial platform. With their high audiences, they were able to dig deep into the market trading sector.
With their quick get-rich approach they are soon becoming the most prominent advisors in the financial market. The internet world has given the word ‘find-influencers’ to them which is short for financial influencers. As fin-fluencing is in its peak growth, more firms are allowing them for their marketing. However, whether authenticity and trustability is a completely different issue altogether.
The Executive Requirements
We will get the best view of the Executive Requirements if you follow FINRA’s Regulatory Noticec of 2021. It provides us with the PFOF (Payment for Order flow) details. SEC chairman Gary Gensler considered the additional executive requirements to protect and promote investors. We can hope that shortly, SEC will provide another detailed analysis, which will be their best take on additional best executive requirements beneficial to the investors.
The Important PFOF (Payment for Order Flow)
PFOF is through with their plans to ban the practice and it is estimated that the practice will be barred altogether by 2021 or the early months of 2022. However, things between the GameStop Saga and PFOF are still not clear as of now. The chairman Gensler has said that they are looking into the matter for the sake of the competitive trading market. Whatever it be, it is sure that PFOF will face drastic changes within a few months.
Gamification
With the financial social media influencers and chat room investments, another important aspect of the trading market is Gamification, also known as DEP, or digital engagement practices. It is similar to running applications where investors can fully track their rise and fall in the stock market. We have to wait for proper guidelines on gamification issued by FINRA and SEC in near future.
Conclusion
We are clearly getting the signal that social media holds the nerves of the market trading sectors in the upcoming years. So, it is very conclusive of the fact that to accelerate in the stock market, people have to readily gear up their knowledge in the market first and then, maintain a very strong hold on social media as well. With our five takeaway points, you will get a clear point of view for sure.
