Digital Engagement Practices and Financial Assets Trading

Abstract

This paper examines the association between the use of digital media to trade financial assets and the frequency with which these financial assets are traded. After concluding that there is a positive association between the use of digital media and the frequency with which investors trade financial assets, we then analyse the association between the existence of automatically generated messages on the platform through which transactions are made and the frequency with which investors trade online. The main conclusion is that the way trading platforms are designed and the continued contact they have with their users help to explain the higher number of trades made by investors who use digital media, particularly those who trade stocks, bonds and/or investment funds.