The internet was the driving force for a wide class of retail traders to introduce internet investment, knocking down barriers to knowledge and execution. The resulting spread of trading software presented a larger spectrum of investors with tremendous functionality. Platforms have also more popularized investing, making a vast variety of asset types, instruments, and education open to huge numbers of retail traders. They centralize many functions and provide liquidity from multiple exchanges and ECNs, adding to the advantages of online investing.
1. Crypto Asset Management
Since UK-based Robo-advisor and online investment manager Nutmeg reached GBP 1 billion in funds under management last year, the next step of evolution is now hitting major milestones. This degree of centralized execution and guidance, however, is less the case for crypto trading, which faces different obstacles that make it unattractive to customers who are less experienced. Crypto wealth management instruments are increasingly evolving with a strong need to assist institutional investors with their discovery of the market. For the companies behind these platforms, the incentive is clear: the market capitalization of cryptocurrencies is nearly $400 billion, and it’s starting to show signs of stabilizing. A more mature market also means that less knowledgeable investors are likely to dip their toes in, requiring in tandem a platform that delivers easier access compared to the fragmentation that currently defines the trading ecosystem.