Trump victory boosts trading activity on Tiger Trade platform
Donald Trump's election victory has led to a notable surge in trading activity across Asia-Pacific markets, according to data from Tiger Brokers.
As the technology sector grapples with the potential for regulatory changes and market shifts, Tiger Brokers' trading platform, Tiger Trade, has witnessed a substantial increase in trading volumes. The data suggests that leading companies in the technology sector should closely observe these developments for possible implications on investor confidence and future policies that could impact the digital economy.
Following Trump's election as United States President on 6th November 2024, the total number of trades on Tiger Trade increased by 74% compared to the previous day and were 48% higher than the average for October. Impressively, 63% of these trades realised a profit or loss, with 76% of those ending in a trading profit.
Greg Boland, Chief Strategy Officer of Tiger Brokers NZ, provided context to these market movements. "Historical data shows a clear pattern in how markets respond to presidential outcomes. Looking at election years between 1928 and 2016, when Republicans won, the S&P 500 averaged an annual return of 15.3%, compared to 7.6% under Democratic victories. We're seeing this pattern play out in real-time across major tech stocks and platform companies," he explained.
He further commented, "The market movements we're witnessing across crypto and financial sectors, for example Tesla which saw a five-day return of 44%, reflects the deep interconnection between policy expectations and market reaction." Boland also noted the impact on Trump's Media & Technology Group, highlighting significant volatility in DJT stocks leading up to the election and a decrease in Trump's net worth by USD $2 billion due to stock fluctuations.
Wu Tianhua, Founder and CEO of Tiger Brokers, addressed the regional market response, stating, "The market has responded swiftly to Donald Trump's re-election, with all three major U.S. indices reaching historic highs. We've seen this reflected in both increased trading activity and improved client returns on our platform, demonstrating strong investor confidence in the U.S. economic outlook."
The New Zealand market mirrored this activity, with total trades increasing by 84% from the day before and by 54% compared to October's average. U.S. stock trades in New Zealand rose by 90% from the previous day and by 57% compared to the previous month's average.
Australian investors also showed heightened engagement, with total trades rising by 96% and trading volume increasing by 110% from the previous day. Trades involving U.S. stocks grew by 103% and trading volume by 107% on the same comparative basis.
In Singapore, Tiger Trade saw an 84% rise in total trades from the prior day and a 51% increase on the October average, with U.S. stock trades climbing by 88% from the day before and 52% compared to the monthly average. Trading volume in Singapore increased by 44% from the previous day and by 31% over October's average.
The surge extended to Hong Kong, where total trades rose by 47% and trading volume increased by 87% from the previous day. Particularly remarkable was Hong Kong's increase in U.S. stocks trading, with total trades rising by 88% and trading volume by 178% from the previous day.
This trading surge coincided with Tiger Brokers being recognised as the number one company in the "Wealth Tech" category in Fortune's inaugural Fintech Innovators Asia for 2024. Wu Tianhua expressed pride in this achievement, saying, "We are honoured to gain recognition by such a well-regarded publication. This accolade not only affirms Tiger's commitment to fintech innovation but also serves as a testament to our team's dedication. We started with a simple vision - to create an intuitive product that supports seamless global asset allocation, enhancing the investment experience for everyone."
Tianhua added, "Tiger Trade has been pivotal in its rapid rise within the Asia-Pacific market. Moving forward, we remain committed to offering a broader range of investment options and exceptional trading experiences, continuously creating value for both retail and institutional clients."
Tiger Trade continues to equip investors to navigate the evolving market dynamics following the election outcome, supported by features such as live US data, 24-hour trading, and demo accounts for strategic development among investors.
