Technology is transforming what\u2019s possible for investors. <\/p>\n
While a good day\u2019s work is something to be proud of, most New Zealanders know that that income alone is unlikely to be enough to secure financial freedom later in life, an investment expert believes.<\/p>\n
\n Chris Smith, the Head of New Zealand
\n for financial services company CMC Markets, says this is why providing easy access to the capital markets is crucial for everyone.\n <\/p>\n
Chris Smith<\/p>\n
And, he says, as artificial intelligence (AI) matures and becomes more available \u2013 and brings with it the potential for instant analysis across vast datasets – significant new possibilities for access are emerging for a growing body of retail investors.<\/p>\n
\u201cMost New Zealanders want more options in retirement than NZ super alone can provide. And while Kiwisaver is a fantastic product, having direct control of your financial future, being able to put some of your income aside for investment, and applying your own knowledge in any given field, means the possibility of a better retirement,\u201d he says.<\/p>\n
Smith was speaking as the company marks 20 years of operation in New Zealand. It started out as the brainchild of Lord Peter Cruddas in London \u2013 he is still CEO \u2013 who got the business off the ground as a currency trader (Currency Market Corporation), providing a forex trading platform.<\/p>\n
By 2005 it rebranded to CMC Markets and in 2006 entered the New Zealand market. Today, the London Stock Exchange-listed firm operates across more than 150 countries and is one of the better-known investing and trading service providers in New Zealand, offering a wide range of services spanning forex, equities, cryptocurrency, and derivatives trading. <\/p>\n
It has processed about 6 million trades in New Zealand over the past year with around 25,000 trades per trading day (based on 250 trading days annually). It launched one of New Zealand \u2019s first mobile trading platforms in 2006 \u2013 ahead of the iPhone \u2013 and today more than 50% of clients trade via mobile.<\/p>\n
What they\u2019re trading has also shifted markedly. Where early activity was concentrated in FX, today CMC\u2019s New Zealand clients are spread across indices like the S&P 500 and Nasdaq, gold, crypto and shares \u2013 with Bitcoin consistently ranking among the top 10 traded products.<\/p>\n
Smith says democratising access to capital markets was and is the company\u2019s mission. \u201cBack in the 80s and 90s, stock exchanges were for the wealthy few,\u201d he says. \u201cEven two decades ago, access required a mountain of paperwork and compliance measures, and your broker was probably someone on the other end of a telephone.<\/p>\n
\u201cThese days you don\u2019t need any of that. You don\u2019t need a $20 000-a-month Bloomberg terminal [an information delivery portal used by professional brokers], anyone can access a wide range of platforms and you can access most platforms and information more easily than ever before.\u201d<\/p>\n
Financial services are expected to become more proactive and technology-drive in the future while industry forecasts suggest AI-driven tools could become a primary source of retail investment support within the coming decade.<\/p>\n
No conversation today is complete without mention of AI, and as an innovative platform provider this is very much on the CMC Markets agenda, Smith says. \u201cAccess to information and insight has always been crucial to investing or trading success; it\u2019s why we have analysts and share their work with our customers.<\/p>\n
\u201cSure, you could access that information through Google or X. But AI steps up more than just a notch. There\u2019s the ability for individual investors to interrogate and interpret information with a virtual guide, aiding forecasting, backtesting ideas and strategies. <\/p>\n
\u201cPeople, especially working professionals, are time poor. AI offers a self-directed solution to that problem.\u201d<\/p>\n
Smith says CMC Markets has distinguished itself over the years by being technology-led, with a secondary goal of facilitating the ability to buy or sell anything instantly.<\/p>\n
The financial services market is competitive, with multiple brokers now servicing the retail (and other) markets. \u201cThat competition is healthy and the pressure it creates means we have to deliver what our customers want. And AI falls squarely into that bracket.\u201d<\/p>\n
\u201cHowever, more access to information hasn\u2019t made investing easier,\u201d Smith says. \u201cIt\u2019s just as hard as ever to make money. We\u2019ve seen the rise of high-frequency trading, algorithmic trading and the noise to signal ratio has gone up with social media. None of those counter black swan events, because they are by definition unexpected.\u201d<\/p>\n
Smith says that while AI can and does provide insights, it cannot replace the immediacy of human thought. \u201cBut I do think the rise of personalised AI robo-advisory delivering information the way an individual wants it will make a difference.\u201d<\/p>\n
He believes that while AI is more sophisticated than a chart, is exciting and promising, it is nonetheless just a tool \u2013 the edge AI provides will ultimately come down to thew skill and judgement of the person using it.<\/p>\n
Reflecting on the past two decades of success, Smith again points to competition and innovation as part of CMC Markets\u2019 DNA. <\/p>\n
\u201cOur mission hasn\u2019t changed; more market participants, the rise of digital assets like crypto, and growing interest from younger generations and new investors are all positive developments. <\/p>\n
\u201cThe famous proverb says the best time to start investing was yesterday, the second best today. Twenty years in, we still want to make markets accessible, simple and convenient for every New Zealander who wants to take control of their financial future.\u201d<\/p>\n
For more information go to: www.cmcmarkets.com\/en-nz\/lp\/20-year<\/a><\/p>\n Discover CMC Markets here: www.cmcmarkets.com\/en-nz<\/a><\/p>\n *Disclaimer: The information in this article is of a general nature and not intended to be personalised financial advice.<\/p>\n