A Study of Impact of Financial Technology (Fintech) on Retail Investors in Trading Securities.

Abstract

The rapid evolution of Financial Technology (Fintech) has fundamentally transformed the landscape of securities trading, particularly for retail investors. This study investigates the impact of Fintech on retail investors by analyzing various dimensions such as accessibility, cost efficiency, and user experience. With the advent of online trading platforms, robo-advisors, and blockchain technology, retail investors now have unprecedented access to financial markets. These innovations have democratized trading, enabling individuals to participate in securities markets with lower fees, reduced barriers to entry, and enhanced transparency. The study employs a mixed-method approach, combining quantitative analysis of trading data and qualitative surveys of retail investors to capture the breadth and depth of Fintech's influence.The rapid evolution of financial technology (Fintech) has significantly transformed the landscape of retail investing, particularly through the proliferation of investment apps. These apps have democratized access to financial markets, providing retail investors with tools and resources previously reserved for institutional investors. This study explores the impact of Fintech on retail investors in trading securities, focusing on how investment apps influence trading behaviors, decision-making processes, and overall market participation. By leveraging a combination of quantitative data analysis and qualitative surveys, the research aims to uncover the extent to which these technologies enhance or hinder retail investor performance, market efficiency, and financial literacy.

The findings suggest that investment apps have both empowering and challenging effects on retail investors. On the positive side, these platforms offer user-friendly interfaces, real-time data, and educational resources, which can enhance market participation and investor confidence. However, the study also highlights potential risks, such as increased susceptibility to speculative trading, information overload, and behavioral biases induced by app design and functionality. The research underscores the need for regulatory frameworks to ensure investor protection and the importance of continuous financial education to help retail investors navigate the complexities of modern financial markets effectively.