Investing has always relied on technology, at least to some degree. Thus, it likely comes as no surprise to learn that technology is constantly changing the way people invest their money.
The following examples illustrate just some of the ways new tech has improved the investment experience for various people throughout the world. Thanks to technology, investors can now do the following:
Start at A Very Young Age
Investing one’s money can be very lucrative. However, it can also be very difficult. It’s not uncommon for people to lose their money when they invest it.
This isn’t because investing is unreasonably risky. It’s because making smart investments requires a thorough understanding of how to evaluate opportunities.
The more experience one has, the better the chances they will be someone who knows how to determine whether taking advantage of a particular investment opportunity is a wise decision or not.
Luckily, new types of investment apps or services allow children (under the supervision of their parents) to make investments in kid-safe ways. For example, with as little as one dollar, they can buy fractional shares of stocks in their favorite companies.
Furthermore, debit cards for kids are also an option – parents can control the balance on the card through an app and children can learn skills necessary for the future.
Invest Without Commission Fees
Traditionally, brokers earned commissions for their clients by facilitating transactions when they bought stocks or similar assets. This prevented some people from investing. Although they may have been interested in the idea of investing their money, they might have also felt that they couldn’t justify doing so if a broker’s commission fee was too high.
This has changed in recent years. Some new apps and online services have done away with commission fees. They’ve managed to do so in part because they exist solely online and do not have brick-and-mortar locations. As such, they don’t have the same kind of overhead as traditional investment firms, which allows them to operate much more affordably. The goal is to pass the savings along to the investor. This new approach has made it much easier than ever before for people across a wide range of income levels to begin investing.
Conduct More Thorough Research
Any smart and honest professional giving investment advice will consistently reiterate that conducting thorough research is one of the most critical aspects of investing wisely. A person needs to truly know what they are buying when they make an investment decision.
In the past, it was somewhat difficult to conduct such research. Although investors could watch TV shows and read columns giving investment advice, the amount of valuable information they could glean from these sources was somewhat limited.
The Internet changed that. Thanks to the Internet, it has become massively easier for investors to learn about the companies they are considering investing in. While it’s still the responsibility of the individual investor to actually do their research and make decisions accordingly, theoretically, investors are now less in danger of making errors that could jeopardize their funds.
Keep in mind that these are only a few recent developments reflecting the interplay between technology and investing. As new innovations come into existence, the way people invest will continue to change.