New investors face many challenges when starting their journey. As a beginner, navigating the financial world can feel like being lost in the jungle without a trail to follow.
However, that has not deterred beginner investors from getting their feet wet. According to a report by Singapore Exchange previously, retail investor participation has grown significantly and “retail trading volume has nearly doubled since pre-Covid-19 days” during the pandemic.
To serve new investors, uSMART has recognised the need to build a beginner-friendly trading app. Instead of repurposing the existing version of its app aimed at the Hong Kong market, it has created one that is tailor-made for Singapore investors.
“In Hong Kong, the investing landscape is saturated and app functionality is skewed towards more sophisticated traders. In Singapore and the region, investors favour a cleaner look and feel where the multiple functions don’t cause the interface to feel overwhelming,” says Mr Ian Leong, chief executive officer of uSMART.
Having been in the market since 2018, uSMART understands the challenges facing new investors. The uSMART app is developed to target those who are new to investing and aims to educate and empower beginner investors.
Giving investors with tight budgets more choices
Beginner traders are often hesitant to commit large amounts of capital, or feel constrained to a limited number of options due to tight budgets.
To remedy this problem, uSMART has introduced a Fractional Shares feature, which is rarely offered by brokers.
The feature enables users to purchase any fraction of a stock on the US market.
By purchasing fractional shares, investors with a low starting capital are able to gain exposure to pricier stocks like Tesla and Google, and can also manage risk more effectively as they hone their trading skills.
Fractional shares are ideal for those who wish to diversify their portfolios but have limited funds. For instance, with the funds they would spend on just one expensive stock, traders can buy a fraction of 10 stocks for better diversification.
With the Fractional Shares feature, beginners who are still exploring the various markets and products will enjoy a breadth of options to choose from, as well as a high degree of liquidity so they can easily adjust allocation of their funds.
Stock picks, curated insights and expert advice at hand
After finally mastering the basic financial knowledge needed to make trades, choosing what to buy or trade is a key challenge. Researching stocks is a time-consuming activity that even experienced traders do not always have the time to undertake thoroughly.
Beginners who are not sure what shares to buy can turn to uSMART’s Daily Stock Picks feature. Every day, a team of uSMART analysts recommends three stocks that have a high possibility of increasing in value in the next few days.
This can be a good starting point for beginners who are unsure of what to invest in and helps them to avoid becoming overwhelmed by the myriad choices available on the markets.
Newbie traders tend to have many urgent questions that need prompt resolution. The uSMART app’s Community function addresses this by offering access to an array of live chat rooms hosted by experts who can answer questions and facilitate discussions on key topics.
Users can engage with one another via the Community tab on the app or access the Expert tab to chat directly with financial experts.
User-friendly, intuitive app interface for a better experience
There is a wealth of information online, but beginners are sometimes floored by the technical terms used in financial reporting and investment-related content. Instead of having to keep turning to Investopedia to find out the meanings of financial jargon, the uSMART app has a Quick Guide function which users can tap for instant access to explanations of investment terms or step-by-step instructions.
The uSMART app also has a beginner-friendly interface that replaces financial jargon with simple terms. For instance, the term “conditional orders” is replaced with the more intuitive terms like “buy low” or “sell high”.
Thanks to the app’s clean and user-friendly interface, beginners should be able to navigate the world of investing with ease.
For investors with a thirst for knowledge, the app’s Intel mode is a subscription feature offering even more smart solutions and support, including the Daily Stock Picks feature, Featured Strategies and a Trend Tracker. These features enable users to delve even deeper into stocks and strategies as they advance on their investing journey.