Australian retail traders are turning to social media resources such as Twitter and Facebook to help them make investment decisions, according to a survey from CMC Markets.
The poll of 500 active equity traders found that trading Web sites are still the most commonly used resource for information, tapped by 57% of respondents with forums visited by 28% and blogs by 18%.
Newer forms of social media are also being used though, with Facebook cited as a resource by nine per cent of those quizzed, Twitter eight per cent and iPhone apps seven per cent.
Of those that use Twitter, 59% are under 35 while iPhone users are more likely to be over 45.
Despite the rise of mobile technology, only 17% of those asked trade on the move, with 83% preferring to trade at home and 43% at work.
Meanwhile, frequent traders are most enthusiastic about offering information to others on social media, with over 25% doing this, whereas just eight per cent of regular traders are willing to share.
David Land, head, analysis and education, CMC Markets, says: "As a stockbroking business, we find that social media channels are becoming increasingly popular with people who are just starting out in share trading. They provide an opportunity for them to learn how to deal with movements in the financial markets in real time."
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