Aussie traders turning to social media - survey

Australian retail traders are turning to social media resources such as Twitter and Facebook to help them make investment decisions, according to a survey from CMC Markets.

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Aussie traders turning to social media - survey

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This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The poll of 500 active equity traders found that trading Web sites are still the most commonly used resource for information, tapped by 57% of respondents with forums visited by 28% and blogs by 18%.

Newer forms of social media are also being used though, with Facebook cited as a resource by nine per cent of those quizzed, Twitter eight per cent and iPhone apps seven per cent.

Of those that use Twitter, 59% are under 35 while iPhone users are more likely to be over 45.

Despite the rise of mobile technology, only 17% of those asked trade on the move, with 83% preferring to trade at home and 43% at work.

Meanwhile, frequent traders are most enthusiastic about offering information to others on social media, with over 25% doing this, whereas just eight per cent of regular traders are willing to share.

David Land, head, analysis and education, CMC Markets, says: "As a stockbroking business, we find that social media channels are becoming increasingly popular with people who are just starting out in share trading. They provide an opportunity for them to learn how to deal with movements in the financial markets in real time."

View the survey results here:

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Comments: (2)

A Finextra member 

I have no doubt that watching my twitter feed since the 12th Jan would have enabled a canny trader to make a motza using the information.(see my blog from that day for a hint) Who would have thought the Egyptians weren't really going to march (or as Mubarek thought -run the gauntlet of snipers) from Tahrir to the palace?  The location of a certain imprisoned activist? Or when immediately after the wave hit Fukushima and I 'overheard' the reactor techs there mention the dreaded 'm' word, through to the first notice of the long concealed problem with the fuel rod pools. Fortunately I didn't link it to my finextra account eh? Social networking...

A Finextra member 

It makes sense and a trader who isn’t connected to "their" community network in someway is simply going to miss out on so much. In reality the Social Media resources of today are the open pit of yesterday.   

Thirty years ago the challenge was obtaining information.

Twenty years ago the challenge was modeling information.

Ten years ago the challenge was verifying information in a timely manner.

Today it is about filtering who is in your network, the market is flooded with too much information and you have to pick through it all. Inappropriate advice can at times be worse than no word at on the market.

Put it another way if you are reading about it in Bloomberg, it has already happened.

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