The iPad and the Financial Web…To Infinity and Beyond

  • Posted by
  • on February 20th, 2010

I have not seen or touched the iPad. I may or may not read more and my iPhone seems fine for music. BUT, there is no doubt that the web will be a better experience and I will speculate with all my heart that the Financial Web is about to be transformed.

Moods Drive Markets. The iPhone changes moods. Life is not as bad with an iPhone. Life will be even better with an iPad….if you like losing money that is ☺ .

There are only a few companies that don’t make the financial industry look clunky and old. Interactive Brokers ($IBKR) is one of them. They have been daring from the get-go and if you are a professional trader, they are the Gold Standard. From their lack of human touch to their ‘Dutch Auction’ IPO, they have broken the mold.

It is IMPOSSIBLE that there will not be more Interactive Brokers.

Gambling, Social Gaming and Facebook all fascinate me. Mostly because I do not fully understand them yet.

The US is still fascinated with equities. That may never change, but in the flat world in which we live, Forex has come on strong. Bloomberg is writing about the fortunes to be made in Forex .

Forex markets are 24/7/365 and young people will appreciate them as they are used to things being open all the time on the web.

Because the markets are global and intertwined like never before we are seeing that NEWS does not conveniently break during market hours. The Forex markets and the software that drives them are in a fantastic position.

As costs and spreads come down even further, the winners in the Forex market will be those with the best execution, those most open and simple to use (get money in and out).

In the consumer world of the masses, execution will not matter as much as user experience.

As for fraud, Bernie Madoff had to eventually steal as he took in more money and was faced with performance stress. That is the professional market for you. Performance stress is why cost and execution matter most. There is no performance stress if you are trading your parents $100 at 40 times leverage against millions of others around the world for seconds at a time, knowing your upside and downside the minute you press ENTER.

In Israel I met with Yoni Assia, the founder and CEO of eToro. Since meeting him, I have seen the Forex light. This company seems like an unstoppable force of nature. If you don’t believe me, log on, open an account in a few seconds, and place your bets on your parents Visa card (not you Max!).

In 5 years, your 20-year-old kid will be quoting the Yuan, Dollar, Yen and Euro (maybe) in the same way they talk about social gaming and photo sharing. They will be trading during class. There will be a million Jim Cramer’s. Though Jim Cramer seems tired and old to us ‘professionals’, the circus has just begun.

I have NO doubt that the iPad will amp things to a level not thought possible in the financial markets..

Will the average person make money….NO.

Will that matter…NO.

The business is about keeping the next generation trading longer. Get it yet?

I need a cold shower to temper my bullishness.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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