Traders Help the Economy in 4 Ways!When you trade and invest, there are many elements that you will continue to help contribute to.
I can think of 4 main ways including:
Way #1: You help with liquidity (volume)
Remember, you are the intermediary in the markets.
When you exchange money and buy and sell, you’re helping provide liquidity and volume.
This makes it easier for other market participants to trade and manage risk. No matter how small or big the account size is, every trade counts.
(Similar to the butterfly effect).
Way #2: Helping our fellow brokers and managers
Yes I know most people can’t stand the fact of the fat cats making millions of rands off other portfolios.
But in South Africa, I find that most brokers are very small and don’t earn a lot of money.
(Some small brokers earn under R25,000 per month).
So when you buy and sell trades, you will help pay the small brokerage fees, which will aid to the salaries of the brokers you are using.
Way #3: When you pay brokerage and fees, it creates more jobs
When you pay the brokerage and trading platform fees.
You are not only helping the brokers. But also the company they work for.
The more money that goes into the firms, the more jobs that are created for other employees (Facilitators, marketers, support staff, risk managers, accountants, analysts, domestic workers, etc…)
Way #4: This brings growth to your broker or market maker
When your broker is doing well, as they have good clients and investors – this gives them a bigger incentive to help build and grow the company further including:
· Better technology.
· Better innovation
· Better efficiency
· Better features in the business
This will also improve your experience with their growth developments.
And so, I’m sure you can see that even if you want to trade for yourself, you will still be helping many companies, people and the economy as a whole…
Nothing to feel bad about.
