Influence of Stock Trading Applications on the Social-Economic System

Abstract

The digital transformation has significantly enhanced access to financial markets through stock trading applications. These platforms have democratized investing, but they have also introduced considerable risks, such as excessive speculation and overexposure. A crucial factor is the influence of social media on novice investors, who often adopt high-risk strategies without proper knowledge. Studies show that users of these applications exhibit a higher risk tolerance than traditional investors, which can lead either to substantial losses or to growth through financial education. In response, the brokerage industry has adapted by lowering fees or launching its own trading platforms. To mitigate risks and enhance investor competence, integrating financial education and trading simulators into these applications is essential. CZU: 336.76:338.1(478); JEL: O16