Mexico has great potential to grow in the field of trading: ATFX

With the expansion of stock market investments through the digital ecosystem, every day more firms are interested in participating in less penetrated markets. Of this group, Mexico is one of the most interesting, said Joe Li, CEO of the intermediary ATFX.

Leader of a global brokerage company for CFD traders, Joe Li believes that all companies in the industry have a responsibility to educate new investors to avoid scams and manage their risks.

In interview with The Economistthe head of ATFX highlighted the growth potential of our country, and the region in general, even in the midst of a pressured economic environment for almost all investment vehicles, mainly due to inflation.

“This 2022 has been a very difficult year for the global economy due to the war between Russia and Ukraine, the latest in Covid-19 and very high inflation. All the economies were hit, we can easily see it in indices like the Dow Jones”, he highlighted.

“Mexico, as with countries throughout the Latin American region, has enormous potential for investment companies, despite the circumstances. For this reason we decided to have a strong team in Mexico City”, added Joe Li.

Opportunities and challenges of a volatile market

For the operations at the end of this 2022 and in a good part of 2023, he anticipated that the days will be marked by high volatility, still awaiting the definition of the paths in key matters such as monetary policy and economic growth.

In this context, he highlighted the possibility of trading downwards offered by companies in the field of derivative products, “because they allow operators to benefit from complex contexts such as the current one and maximize profits with leverage.”

However, he clarified that participating in this sector, for intermediaries as well as for traders, entails opportunities and challenges. In the case of intermediaries, education and also attention must be an added value to their intrinsic work as a platform.

“I think that attention is the key to services in financial markets. Numbers are observed on the platforms, but behind them there are users and they are that key point. Technology is important, but we must not forget the support for these people”.

Few options and many scams

In times when investments have begun to take on more popularity, the executive director of ATFX warned that scams are also likely to proliferate, something that every well-established broker must also combat.

“In Mexico it is likely that many new traders do not have enough knowledge to recognize a good broker. Part of our responsibility is to educate these new investors about regulation and then how to invest,” he said.

“For this reason, one of the challenges must be, in the country and in the region, with markets that are not yet sophisticated, that investors or traders have the necessary information to escape scams and know how to choose their intermediary before operating. ”, he added.

The role of the sector in the crisis

After completing this task, said Joe Li, investment platforms must provide investors with fast and high-quality information so that they can recognize what is happening in the financial markets and can better manage their positions.

“We are in the middle of a financial crisis and for ATFX the investment sector platforms play an important role, because although we do not have the answer to what to do to end the crisis, we can contribute from our activity”, he said.

jose.rivera@eleconomista.mx

Trading operations with contracts for differences, like all in the financial markets, involve the risk of loss. This text does not represent in any way a buy or sell suggestion from the author, José Antonio Rivera, from El Economista or another member of his team.