These days, 50% of investors are under 30, a demographic that essentially grew up on social media.
While many trading platforms are incorporating aspects of social media, none has truly integrated social and trading from the ground up.
Benjamin Chemla, CEO and Co-Founder of Shares, is planning to change that by offering the first true social trading platform.
In this episode, we discuss:
- What social trading is and how it adds to the Wealthtech market
- Why the GameStop controversy and purpose-driven investing bodes well for social trading
- Why Benjamin is confident Shares can avoid the fake news trap
What is “Social Trading?”
Social trading, for Benjamin, started simply. He and his friends were chatting on social media about their investment strategies. Who had invested in what? What sort of returns had they seen? What were their recommendations for what to invest in next?
Sometimes they were exchanging ideas, sometimes they were sending each other screenshots of their portfolios, and Benjamin began to wonder if anything like that existed out there in the real world. A social trading platform that allows users to keep track of what their friends are doing, in real time.
“Social trading is where I’m putting all my focus right now. It’s a game changer.”— Benjamin Chemla
Not just “what are their portfolios,” but sharing ideas, learning about each other, and having some fun. And since he didn’t find anything like what he wanted, he decided to just build it instead.
Young Investors and ESG
Given that more than fifty percent of new investors are under the age of thirty, there’s a whole new demographic of young professionals willing to spend some of their savings on things that matter to them. Not just throwing money at whatever is returning the highest, but focusing on those companies that are doing good.
This group of people grew up with social media, and like everything else in their lives, they basically expect those tools to always be there. Social media has become the standard for young people to get information on the companies they’re investing in, so it’s a no-brainer to involve a social aspect in trading.
Combating Fake News
With the increase of the social side of investing, misinformation is a huge concern. How does Shares approach the policing of their social platform, without playing Big Brother? How do they let their users socialize, while still ensuring they do so responsibly?
“Our role as a Fintech and as a regulated platform, is actually to create a safer environment.”— Benjamin Chemla
One of the ways they’re helping to combat this spread of misinformation and abuse is by omitting the “follow” feature. There are no users with millions of followers, spewing information out into the digital universe with no accountability. If you request someone as a friend to contact, you both accept one another.
There’s accountability in this method. By removing the “follow” ability, Shares creatively demonstrates its dedication to creating a more enjoyable, safer experience for everyone.
Interested in Shares and joining the social trading revolution? Make sure you listen to the whole episode with Benjamin.
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Until next time!
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