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Saxo Bank, a leading globally regulated brokerage specializing in online trading and investments, has published data about investors from Azerbaijan to the local media in the country.
According to Saxo Bank, the number of investors from Azerbaijan on social trading portal TradingFloor.com has increased by 30% over the past two years.
Most of the investors belong to the age group of 30-40 years and older and are living in the capital city of Baku where there is a confluence of banks, financial and oil & gas companies and businesses in Azerbaijan’s largest city.
The majority of Saxo Bank’s clients are men. Among the investors are predominantly businessmen, executive and financial directors, private investors, managers, employees of investment companies and banks, as well as persons with high income. These clients try to invest part of their capital in financial markets in order to diversify their sources of income.
In general, annual growth in the number of investors from Azerbaijan makes up approximately 15% that includes both private and corporate and foreign investors, many of whom are employed in the oil sector.
The potential financial investment capital of the Azerbaijani investor starts from €100,000 and can reach €500,000 or above. Saxo Bank also has a significant range of young investors – graduates from financial departments that are involved in trading operations on the platform with a classical account of €10,000.
Saxo Bank also points out that the Azerbaijani traders have rich knowledge and are fully aware of the financial markets. Most investors have accumulated significant trading experience in Forex using the MT4 trading platform. Over the past five years a substantial part of Saxo Bank’s clients transferred to trade of multiple products, and this multifunctional platform SaxoTraderGo fully meets the requirements of the clients.
In the sphere of currency trading the Azerbaijani investors prefer trading the following currency pairs: EUR/USD, GBP/USD, XAU/USD. CFD indices, especially the DAX are also popular among Azerbaijani investors. Due to the Azerbaijani market’s strong dependence on oil and the high volatility in oil prices lately, the Azerbaijani investors, especially oil companies, are actively trading in oil CFDs and futures for hedging purposes.
According to Saxo Bank, 60% of investors prefer to risk carrying out trading operations on the exchange rate difference and striving for quick profits. Other traders trade shares and funds mainly on US exchanges.
“For the past 2 years the number of investors from Azerbaijan on social trading portal TradingFloor.com increased by 30%. Some traders take an active part in discussions with Saxo Bank’s analysts and give the access to their trading profile. In addition, traders from Azerbaijan register free demo accounts to learn the basics of trading and increase the experience in the field of virtual funds,” Saxo Bank said is a statement.
Traders, who do not wish to conduct trade operations, relying only on their knowledge, or who are lacking the time to monitor closely the updates of the financial market, are actively using the recently launched platform allowing to get access to fully automated discretionary strategies selected by the broker. Those strategies provide information on different asset classes and types of investments and also help diversify the total portfolio of the trader.