What is an Internet broker and what are its characteristics?

With the important policy of "promoting the healthy development of Internet finance" and accelerating the implementation of the "internet plus" development strategy, China investors' demand for overseas asset allocation continues to grow, and Internet brokers have entered a period of rapid development. The innovation and development of the new "Internet broker" ushered in a rare historical opportunity and unprecedented impetus.

Definition of Internet Broker

Internet brokerage is the innovation of securities business under the development of financial technology. It refers to a financial service platform that provides securities and other derivatives trading activities through the Internet (online), covering thousands of varieties such as stocks, futures, foreign exchange, bonds and options.

Internet brokerage is an independent financial form, which is essentially different from "Internet plus brokerage" and "brokerage plus Internet", but they are all inseparable from the foundation of securities business. If a financial service platform does not support securities business, it cannot be called an Internet broker. Internet brokerage business is a horizontal extension on the basis of securities business, extending to financial derivatives such as futures, foreign exchange, options and bonds.

In the new information technology revolution around customer service, business innovation and industrial upgrading, Internet brokers are constantly improving their technical services to domestic individual investors and institutional investors and improving the domestic and global asset allocation environment.

The origin of network brokers

Internet brokers originated in America. Thanks to 1975, the United States abolished the fixed commission system, and the embryonic form of Internet brokers began to appear. If we deeply study the development of internet brokers, we can see that its appearance is closely related to the reform of commission system, the progress of computer and internet technology, and the breakthrough of separate operation restrictions, among which the United States and Japan are the most typical countries for the development of internet brokers.

China's Internet brokerage model;

At present, there are two main modes of Internet securities industry in China. One is the network operation of traditional brokers, and the other is the cooperation between internet companies and brokers to build an internet securities platform.

Traditional brokers touch the net: traditional e-commerce network operations include network account opening, e-commerce marketing, and mobile clients. Brokers use e-commerce platform to build online flagship stores and sell financial products such as investment consulting and information services. On the other hand, we should build our own internet mall and sell the products in the hands of brokers to customers quickly.

Brokers+Internet companies: Traditional brokers cooperate with Internet companies to establish a third-party Internet securities platform, and seize the customer base by importing customer traffic from Internet companies and financial data processing and technical analysis of their own professional systems.

There are three main ways:

First, on the mobile client, establish an online financial platform to provide customers with real-time trading quotes and information, set stock price reminders, seize trading opportunities, and attract customers with interactive services.

Second, you can enjoy commission by opening an account online in cooperation with brokers. In addition, it provides financial services for the margin balance, does not participate in revenue sharing, and only charges a very low management fee.

The third is to buy shares in brokers. Internet provides network access services and venture capital support for brokers, and brokers provide trading functions for Internet companies' apps.

Characteristics of Internet Brokers

Real deal

All orders from online brokers will be submitted to the exchange for matching transactions. The easiest way to test whether a trading platform is real is to see whether the platform can support securities trading. In addition, it can also be judged by querying whether the platform can provide the delivery form of customer transactions.

Comprehensive variety

VS Traditional brokers only support a single securities or futures business, while Internet brokers can trade global mainstream investment products such as stocks, futures and foreign exchange through an account, a sum of money and a trading software, with higher capital utilization rate.

VS Futures Company/foreign exchange platform, the business scope of futures company and foreign exchange platform is increasingly overlapping, and there is no essential difference. Compared with the two, Internet brokers support securities trading, have a broad customer base in China, and have more advantages in market development.

Network marketing mode

Internet brokers rely on their own marketing channel advantages to provide more investors with comprehensive and accurate market information and comprehensive financial services through their websites and software. Investors can sign accounts, entrust transactions, pay and execute transactions through the Internet.