Home Markets Dutch watchdog to review online brokerages over app surge

Dutch watchdog to review online brokerages over app surge

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An empty street is seen during lockdown in Amsterdam, Netherlands December 15 2020, REUTERS/Piroschka van de Wouw//File Photo

AMSTERDAM, Nov 4 (Reuters) – The Dutch markets regulator will investigate how investment apps are influencing consumer behaviour, it said on Thursday, after a sharp rise in the number of do-it-yourself investors.

In its yearly review of major trends, the Authority for Financial Markets (AFM) said that the number of Dutch households that actively invest had risen by 35% over the past two years, which coincide with the coronavirus pandemic.

Most are making their own investment decisions and trading via a smartphone application, it added.

It said that among self-directed investors, a “large majority” check the value of their investments more than once a week and are prone to overreact to price changes, with around a third showing signs of poor investing practices.

“Low diversification or trading frequently in high-risk products such as…

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