How Technology Is Making Investing More Accessible To Everyone

Technological innovations, which are becoming increasingly futuristic and incisive, are completely transforming every aspect of our private and working lives. The investment sector has certainly not been left out of this impressive change, which has made it more democratic and accessible.

Nowadays, anyone with even a small amount of capital, and an internet connection can, in just a few clicks, carry out trading transactions, open a stocks and shares ISA for long term investing, add ETFs and bonds to their securities account, and so on.

However, greater accessibility and simplicity do not automatically translate into easy profits. On the contrary, anyone who decides to invest must always be fully aware of the risks they are exposed to, which may not only prevent them from achieving their goals but even cause them to lose their investment.

Below, we will explore the changes that technology has brought to the world of investing and how it has made it accessible to everyone.

 

Technologies That Are Transforming The Investment Sector

 

Several technologies have played and continue to play a leading role in the transformation and democratisation of the investment sector.

The first that comes to mind is undoubtedly the web, which, thanks to its accessibility and widespread use, has effectively laid the foundations for many subsequent changes. It is in this virtual space that investors, both professional and novice, can find services, tools and platforms through which to make investments without leaving their homes or offices.

In addition, the web has made it easier to obtain financial education, enabling more and more people to acquire basic skills that are useful for making small investments without taking high risks beyond their means.

Other technologies that are gradually changing this complex world and removing the aura of elitism that once characterised it include:

• blockchain, which makes it possible to tokenise assets, while reducing costs and transition times;
• data analysis tools, particularly big data;
• artificial intelligence, which, through robo-advisors, allows users to obtain personalised advice and automate portfolio management.

 

 

The Main Changes and Increased Accessibility

 

The main changes introduced by technology in the investment sector, which have made it more accessible, primarily concern the ability for anyone to quickly access investment solutions, personalised advice and educational tools from any device, whether fixed or mobile, with an internet connection.

In most cases, it is not necessary to have any qualifications or skills to use these tools, although it is better to avoid doing it on your own if you do not have enough knowledge. The only restrictions are related to age, as investment and trading websites can only be used by adults.

Moreover, they involve the lower management fees, which often result in lower commission costs for investors. This, combined with the possibility of focusing on investments that require only a small initial outlay, also opens the door to those who do not have significant savings but do not want to give up making small capital movements.

Other changes that have made investing more accessible

Other changes that have made the investment sector more accessible include:

– the increased level of security of digital and online tools, which allows investors to buy and sell securities and other assets without worrying about hackers;

– the higher level of personalisation of the investment experience, which makes it easier and faster to obtain tailored advice, including through artificial intelligence tools.

All this has greatly expanded this sector, although the risks inherent in any investment transaction should never be forgotten. For this very reason, it is best to avoid acting independently unless you have the necessary expertise, and to seek help from qualified advisors.