Too old to trade? GMO Click clarifies policy regarding those aged 81 years and above
Risky products, such as Forex and options, are not available to those that are more than 81 years old.
Here is a touchy topic. Although pretty much anyone is aware that there is a minimum age requirement to open an account with any financial services company, including a Forex broker, barely anyone dares to speak about the upper age limit when it comes to investment and trading. Fear of being accused of discrimination, willingness to be political correct, or simply lack of care about what is happening with the investment plans (apart from a pension plan) of older people are among the factors behind such a silence.
Japanese online trading services provider GMO Click Securities, a subsidiary of GMO Internet Inc. (TYO:9449), has earlier today broken that taboo and has shed some light on how it treats older customers. The broker has outlined its policy regarding people that are 81 years old or more. Let’s note that this happens in Japan, where the aging population is a critical problem for the state authorities and where financial culture is high.
The broker has stopped offering new dealings in Forex and options to customers aged 81 years and above. Trading on Click 365 and FXNeo is also not possible for them. The company notes that it has encountered risks when it comes to such a type of clientele.
However, some products are still available to elderly clients, including (certain) shares and bonds.
Let’s recall that elderly people are often targets of scams. During the quarter from January 1, 2017 to March 31, 2017, the counseling service of the Japanese Financial Services Agency (FSA) received 197 reports of cases of fraudulent investment solicitation, with the bulk of the complaints coming from elderly people. Around 21% of the complaints came from people in their 70s, whereas 20% came from people in their 60s. People in their 80s accounted for 10% of these complaints.
The approaches to investor protection in Japan and Europe are starkly different. Whereas ESMA imposes restrictions on leverage, bans certain products, etc, the Japanese business focuses on the needs and profile of the investors themselves, rather than the nature of the product offered. And although European brokers will have to pay attention to the professionalism of their clients, the topic of age remains covered in silence.
