“That’s why we see such a big opportunity in Australia. We can deliver a much more nimble technology experience, which means it’s not just faster. This gives better access to markets,” he says.

Tiger customers can buy and sell US stocks and exchange-traded funds pre-market, post-market and live during US trading hours, features not typically available to online retail investors.

The platform also features a social media component, where users share and comment on stock ideas, although McCarthy cautions this should not replace independent advice and investors’ own research.

The COVID-19 pandemic saw a huge increase in the number of new shareholders during the first lockdown.

Frank Lin, financial planner at Xin Wealth in North Sydney, says many Australians have been deterred from buying stocks in overseas markets, due to the cost and difficulty, but that is changing as it gets easier.

Young investors are particularly attracted to certain U.S. tech stocks, such as Telsa, he says.

Tiger also offers retail investors the ability to buy US options in real time while the US market is open, which until now has been prohibitively expensive.

However, while the online broker is making options more widely available, Tiger’s McCarthy warns that they are not for everyone and certainly not for beginners.

“Just like you wouldn’t let someone walk into a workshop and fire up a lathe and start spinning, it’s not a good idea for inexperienced investors to start trying their hand at these more powerful instruments,” says -he.

“But for those who understand options, their use, particularly in portfolio management, is compelling.”

Options offer investors the ability to buy or sell a stock at a predetermined price at some point in the future. This means that any gain or loss is greatly magnified relative to buying the underlying stock.

They can be used to magnify a stock’s upside if the price rises and also protect the investor against a stock’s price declines. For example, an option to sell a stock at a particular price – known as a put – is actually a way to lock in the price of that stock even if the actual price of the stock goes down.

Users of the Tiger platform can also create a paper account or a demo stock trading account.

Demo accounts do not contain real money, so investors can experiment with them until they feel confident enough to invest real money in the market or can try new trading strategies. investment without risking money, says McCarthy.

McCarthy says investors are increasingly looking to offshore diversification as a risk-mitigation strategy.

“Only the most sophisticated investors can use some of the derivative tools they use, but all of us can use diversification as a risk management tool,” he says.

“We are seeing a good sense of investment among investors considering entering overseas markets. The reality is that most people start out trading stocks in their home country, be it Australia, Singapore or the United States. Only later, as they grow in sophistication, do they begin to spread around the world.

He agrees with Lin that US tech stocks are particularly popular, including Apple, owner of Google Alphabet and owner of Facebook Meta.

“The ability to not only access these stocks, but to do so in a timely and cost-effective manner is very important. That’s what Tiger brings to the table. There are a number of brokers that allow you to trade in the US, but very few can offer you the ability to trade in real time before and after the market and at a reasonable cost,” says McCarthy.