Digital trading – the easy way to trade

You can trade securities such as investment funds, exchange-traded funds (ETFs) and stocks digitally via an app. As a private individual, you gain access to trading on the financial markets, making it easier to get started.

The apps are easy to use on your smartphone or tablet and allow you to trade anywhere. Since as an investor you decide independently how much money to invest and how, the fees for securities accounts and transactions are usually lower than those for conventional trading, which often involves experts.

This combination of user-friendliness, low costs and a wide range of products explains why trading via an app is so popular.

The digitalization of securities trading

Since the 1990s, the Swiss stock exchange, which was once analog, has become increasingly digital. Floor trading, for example, stopped in 1996 and has since been replaced by electronic trading.
Today, the stock exchange is fully digital. Artificial intelligence is now used to reliably analyze large amounts of data for suspicious transactions. Cryptocurrencies have given rise to an entirely new asset class that exists solely in digital form.

Digitalization has brought about the biggest change for private investors, as it has made the stock exchange accessible to the general public. Information transparency is one reason for this change. It gives everyone much easier access to financial knowledge through online portals, social media and digital magazines. Digital trading is also much more accessible today than it was a few years ago.

The benefits of online trading platforms compared to conventional platforms

Online trading is possible at any time. Users can access their portfolio and buy or sell anywhere in the world at any time. The only requirements are a digital device, an account and an internet connection.

UBS key4 trading is integrated into the UBS Mobile Banking App and allows adult clients domiciled in Switzerland with a UBS Digital Banking contract to open a custody account digitally with just a few clicks, without having to visit a branch, as is usually required for a custody account.

UBS’s digital trading solution for individuals offers a wide variety of financial instruments: choose from a wide selection of investment funds, ETFs and stocks from the three markets of Switzerland, the US and Germany. Unlike personal investment advice, digital trading focuses on independent and autonomous trading. This means you decide which securities to include in your portfolio, how much to invest and which strategy to pursue. Furthermore, you’ll find everything clearly arranged in one place: accounts, cards and investments.

Who typically trades via app?

According to a representative study by the Lucerne University of Applied Sciences and Arts, users of digital trading solutions are between 18 and 79 years old. This type of trading is especially suitable for investors who already know which investments suit them and have a basic understanding of investing. This app offers these individuals many insights and the ability to flexibly design their investment strategy and actively manage their financial planning.

The risks and challenges of digital trading

The easy access to online trading and the constant availability of trading platforms are a major advantage, but they can also lead to impulsive behavior and bad investments. Many investors, especially younger ones, make frequent, high-risk trades and can be misled into investing all of their savings with just a few clicks. For them, the numerous providers make trading on the stock exchange just as easy as posting on social media – often without the necessary basic knowledge or a clear overview of their own finances.

Many users are concerned about whether their data is securely stored by these trading platforms, as cyberattacks can indeed be a threat. The security standards are regulated by the Swiss Financial Market Supervisory Authority (FINMA), which ensures the protection of investors. It recommends several measures, such as strong passwords, two-factor authentication when logging in, and avoiding public Wi-Fi. Trading platforms that advertise with promises of excessive crypto profits are suspicious.

At UBS, investors generally receive comprehensive information and tips on fraud prevention and security. Since UBS key4 trading is integrated into the UBS Mobile Banking App, extensive security standards are a given.

The basis of any trading success in digital trading is the investor’s own knowledge. You should have a strategy, understand trading, thoroughly check the app or user interface and master its functionality.
It is equally fundamental to have a well-thought-out investment plan and an investment strategy that you adhere to strictly. It is important to know that you cannot define this strategy within the app itself, as no investment advice is provided.

Which investment strategy is right for you depends on your individual desires, preferences and financial possibilities. Even if you trade independently and on your own account, you will benefit if you obtain expert advice first because every investment must match your risk profile.

Online trading involves the buying and selling of stocks, ETFs, investment funds and other financial instruments through an app. The application enables individuals to trade securities digitally, meaning a low entry barrier and fast processing.

Compared with traditional trading, trading platforms are generally more cost-effective, intuitive to use and can be accessed anytime and anywhere. At UBS key4 trading, you can find everything in one place – accounts, investments and transactions. Trade securities quickly and easily and keep an eye on their performance at all times.