Digital platforms make it easier to start investing but those same platforms may influence retail investor decision-making in a way that impact outcomes — both positively and negatively.
 
A new OSC study examined the impact of five gamification techniques and four other behavioural techniques on retail investor behaviour. The study looked at the pros and cons of each technique, and reviewed practices in use on some Canadian and American platforms.
 
As part of the study, a randomized controlled trial with 2,430 participants was conducted. It found that certain techniques can significantly impact investor trading frequency and the concentrated buying and selling of certain stocks.

Would you be more likely to buy a stock if you got points when you made a trade? Our OSC study found people rewarded with points for buying and selling stocks made 39% more trades than the control group in a randomized controlled trial, with 2,430 participants. This was true even though the points had inconsequential economic value. It’s a concern because trading more frequently can have a negative impact on your returns.

Do you know your behavioural biases?

Improve your awareness of your behavioural biases or “blind spots” that may influence your decisions using our tool. Knowing your biases can help you be a better decision-maker.

Thinking about investing? Read these top 10 tips to help you get off to a good start.

Money can feel tight in today’s economy. But before you borrow, ask yourself a few key questions.

There are alternative ways to become a public company without going through the traditional initial public offering (IPO) process. For example, a special purpose acquisition company, or SPAC. Learn about SPACs and more.

Here are some recent developments and publications:

Crypto market developments continue to make the news. Learn about trading crypto on our website GetSmarterAboutCrypto.ca. Help keep your money safe by knowing the red flags of crypto fraud. And try our new crypto quiz to test your knowledge.

Join our Fraud prevention Twitter chat today (Nov. 22) at 1 p.m. Follow the hashtag #FraudChat and our Twitter handle @smarter_money to see tips from law enforcement and others to protect your money.

Putting the spotlight on fraud prevention 

Financial Literacy Month is almost over. But it’s never too late to learn to spot the signs of investment fraud.

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