While the markets are experiencing unprecedented volatility in recent times due to the Covid-19 crisis and despite the sharp falls that have been registered, the general interest in investment has only grown. Different platforms offering investment services in Spain attest to a strong increase in the number of new users who, attracted by the possibility of trading on the Stock Exchange at a reduced price compared to the highs in February, have decided to take the step of investing . The magnitude of the phenomenon is such that the European Markets Supervisor (ESMA) has issued a statement reminding brokers of the importance of informing small investors and following the rules of MIFID II.
One of the most representative examples of this barrage is in the Degiro broker. The platform has put in place a waiting list system that includes those who decide to create an account for the first time. Company sources reveal that the decision was made with the aim of "maintaining the level of quality in the service" amid the avalanche of users. As this medium has verified, the waiting list reaches more than 20,000 new clients in the case of Spain. In the first quarter, Degiro opened 137,000 new accounts across Europe, 135% more than in the same period last year.
Álvaro Vidal, head of ING's Orange Broker, maintains that so far in 2020 the number of operations has grown 100%, while users have done so 200% compared to the same period in 2019. “We believe that in In recent months, the activity of private investors has intensified in the face of lower operations by professional investors, ”says Vidal.
Banco Santander has seen how, between January and April 2020, the number of users of its SOFIA broker has risen by 53% year-on-year. For its part, the Abanca broker quadrupled both clients and activity in March.
"In a context of high volatility, we have always registered an increase in the number of investors who want to launch into the market to take advantage of the opportunities," they detail from IG. On eToro, the number of people who first registered to invest has shot up 401.7% globally between January and April 15 this year, compared to the same period last year. XTB is another of the brokers that has experienced strong growth. In the first quarter of 2020 it has obtained 21,911 new clients, compared to the 6,843 that it achieved in the same period of 2019.
Beyond the existence of a greater number of investors, this increase in interest is reflected in other facets. Joaquín Robles, analyst at XTB, affirms that there has been a "brutal increase" in terms of demand for training.
In the case of Renta 4, the entity specialized in investment services has also noticed a sharp increase both in the demand for training resources and, for example, in the online seminars it organizes, as well as in its clientele. The total number of clients in Renta 4's own network climbed to 87,216 at the end of March, compared to 81,521 in the first quarter of 2019. “We already had a good trend before the crisis, but it is true that the rhythm ”, says Juan Sánchez del Campo, director of client solutions for Renta 4.
This expert appeals to investors and asks that they not be carried away by euphoria. "It is true that we can find good opportunities, but you have to have a cool head." Sánchez advises entering the market gradually, taking into account the fundamentals of the companies, that they are poorly leveraged and that they can work well in this new scenario that the Covid-19 will leave. “Entering a company because it's gone down a lot is an emotional investment component that you have to run away from. The opportunity is not measured based on how much it has risen or how much it has fallen, you have to analyze each of the companies, ”he warns.
High demand for information
Record
The financial information platform Investing.com has seen its numbers soar despite not offering broker services. So far this year, its number of users has increased by 82% while page views have increased by 72% compared to the same period in 2019. In this case, the Covid-19 effect is even more evident. In January, the number of Investing users rose 12.7% compared to January 2019. In March, it rebounded by 131.5% and, in April, by 147.6%. On April 21, when oil went negative for the first time in history, Investing achieved the highest number of visits ever recorded in its 13 years of existence.
Feeling
The experts of the platform advise investors with caution and remember that at the moment the market is driven by specific feelings rather than logic. In this sense, they influence that sectors such as technology or health tend to better withstand the strong ups and downs that are hitting the Stock Exchanges.