Paulo Pinto on investing online | DIF Broker | Video

Transcript

The internet has brought international finance closer to home, giving investors easier access to the global economy. Paulo Pinto, CEO of the pan-European brokerage firm DIF Broker, discusses what it takes to succeed when it comes to online investing, and the challenges that DIF Broker takes on – negotiating complex laws and regulations across different jurisdictions – so its traders don’t have to.

World Finance: Paulo, how is international finance responding to online investing?

Paulo Pinto: Through technology. We don’t have people anymore dealing with things in finance, and basically it’s computers, it’s wireless internet, it’s connections, communications, and just connecting the dots in between all the markets in the world and bringing them into one platform and providing that to the client, like if you were dealing with your local market.

“It’s allowing people to invest worldwide with no difficulties, with no complications, feeling safe”

World Finance: Well this investment model, I’ve heard you say, is the future of investing, so can you tell me more about that?

Paulo Pinto: We indeed believe this is the 21st century for investment. It’s going into the future, it’s allowing people to invest worldwide with no difficulties, with no complications, understanding where they put their money, feeling safe that even if they don’t understand about Japanese or know anything about Japan, they will be able to have a model on Japan and put their money there, working there for them.

World Finance: What challenges is DIF Broker facing while trying to expand globally?

Paulo Pinto: We are a global broker, catering for global investors. We are not specialised in any particular market so we do not compete in a local market with a local broker. Our goal is to go to global investors and to teach the ones that want to have a broader view. For that, we leveraged ourselves using our partners in the US – DWA, Dorsey Wright – and we have created a new concept, because they are mastering the ETF model of investing and by bridging the two companies we are offering more than 80 models to investors. We came to the conclusion that the investors today, they don’t want a quarter inch drill, they want a quarter inch hole. They don’t want anymore to do it yourself, they want to have it done, and this is basically what we offer.

“We are a global broker, catering for global investors, offering more than 80 models to investors”

World Finance: Well DIF Broker allows it clients to invest in whichever markets they choose, and this means negotiating often different and complex laws and regulations among the different countries, so how do you approach this?

Paulo Pinto: It’s not a difficult process for us because we keep it simple, we don’t do as other brokers arbitrage in regulation. We open all our accounts in Europe, which means that we have to comply with the rules of compliance, and know your clients’ rules. Basically, we keep it simple, because we believe that this will cover everything that the investor wants and they will be much better with the investments made with the European broker.

World Finance: What are the greatest concerns for investors when it comes to online brokerage?

Paulo Pinto: We believe it’s the fear of taking responsibility. While the industry is talking about empowering the investor, the investor is afraid of taking responsibility, and that’s why we pretend to take things in a very simple way and present to the investors in a very simply way. We create these models, which people will understand, we provide them the risks, we alert them for the risks on investment, we alert them for the fact that we are aware of these risks on investment also, and we keep it simple.

“While the industry is talking about empowering the investor, the investor is afraid of taking responsibility”

World Finance: Now DIF Broker is focused on customer growth, so how are you going about this?

Paulo Pinto: We are more focused on customer retention than customer growth, and we understand that the clients’ Danish market where we are, the clients that we cater which are global investors, they are not compatible with the growth that people eventually will create on their minds for brokers. Client retention is a lot more important for us, because we have a lot of clients, we want to keep them happy, and we want to keep serving them, and we provide the service that a company that is customer orientated should provide to the clients.

World Finance: So what does it take to succeed in online brokerage?

Paulo Pinto: It’s to have the idea that we are useful in what we do, and to believe that what we do is really making a difference for the investors.

World Finance: Well finally, what is DIF Brokers’ plan for 2014?

Paulo Pinto: We would like to continue to be the best online broker for our clients, and if we can succeed in that we’ll be happy.

World Finance: Paulo, thank you.

Paulo Pinto: Thank you.