Equity Trading: Social Media Channels
Online stock brokerage company Zecco launched a stock trading app on Facebook, while TD Ameritrade rolled out an AI-powered chatbot that allows stock trading on Twitter Direct Message and Facebook Messenger. India's Motilal Oswal AMC has a WhatsApp number that investors could contact and transact with after authentication.
Zecco Wall Street
- Wall Street is a Facebook app provided by the online stock brokerage company, Zecco.
- The app acts as a financial hub for Facebook users, updating them with real-time statistics, quotes, and charts, such as the most actively traded stocks.
- Through Zecco Wall Street, users can request individual quotations and place trades, a feature reported to have a "patent pending" status.
- Users can also do traditional actions on Facebook, such as "liking" certain stocks, leaving comments, or sharing.
- All features are available to any Facebook users, except for placing trades, which requires the user to be a Zecco customer too.
- In 2018, online broker TD Ameritrade launched an AI-powered chatbot on Twitter Direct Message.
- The chatbot allows users to do stock trading and get stock quotations, market information, updates, and educational videos.
- The company used the same technology to allow stock trading in Facebook Messenger.
- Additionally, its web platform can track social sentiment and social signals, with insights from Twitter.
Motilal Oswal AMC
- Motilal Oswal Asset Management Company is an investment company in India that added social media, WhatsApp, to its trading stock trading platforms.
- The platform is available only to the company's existing investors. It works similar to mobile banking, where an investor contacts a hotline (in this case, a WhatsApp number) to do transactions after authentication.
To provide at least three examples of stock trading through social media platforms in the U.S., we searched several industry-related websites. We discovered that the technology that allows direct trading through social media, particularly Zecco Wall Street in Facebook, has a pending patent, which means that Zecco may be the first and the last broker to offer such features. Although there may be other creative ways to use social media in stock trading, such as the case of TD Ameritrade, which developed a Twitter Direct Message and Facebook Messenger chatbot, we did not find more in the U.S. So, we expanded our research to cover investment companies outside, where we found the case of Motilal Oswal AMC in India.