YEREVAN, October 27 /ARKA/. Interest in investing in Armenia has grown significantly in recent years, and along with it, so has the need for accessible tools that allow one to take their first steps in the financial market.
Is it possible to start investing with just 10,000–20,000 drams, and why is the idea that “investing is only for the rich” misguided? Arman Khachatryan, Head of Private Investments at Freedom Broker Armenia, in an interview with ARKA news agency, discusses how modern technologies are making the investment market accessible to everyone, where to start, and the myths that most often prevent people from taking the first step.
ARKA – Freedom Broker Armenia actively promotes accessible investing. Is it possible to start investing today with a small amount, say, 50,000 or 100,000 drams?
A. Khachatryan – Yes, of course. You can start with as little as 10,000-20,000 drams. We have no limits on the amount you can start or integrate into this process. Of course, you won’t have perfect diversification across 10-12 positions, but you can make two excellent positions, for example, buying an ETF, a bond, or a stock suggested by our analysts. Such diversification will lead to a certain profit in the future.
ARKA – How have technology and fintech platforms changed the barrier to entry for retail investors in Armenia?
A. Khachatryan – With the advent of new technologies, the integration of the tech sector into the financial sector has been successful, as investing has now become more accessible for the public and investors – investing is as easy as one or two clicks.
You can explore and “feel” the investment market on our Freedom Broker Armenia platform, where you can find both analytical data and positions. Everything is accessible – you can begin your journey into the world of investing with just one click.
ARKA – Today, many people believe that “investing is for the rich.” What is Freedom Broker Armenia doing to dispel this myth? What other misconceptions hinder investing?
A. Khachatryan – I can add another common statement: “I don’t understand this, I’m afraid.” This opinion leads to so-called paralysis of indecision. In fact, a priori, many stereotypes and myths are widespread, for example, that the stock market and exchange are casinos and similar to gambling.
Of course, investing is not for the rich. In general, investment companies find it easier to work with people who have sufficient capital – they are more dynamic and open to change.
At Freedom Broker Armenia, our policy is not to work only with the wealthy; we work with all clients. As already mentioned, you can start with a small amount, for example, 10,000 drams, to learn, develop, understand how our market works, and then earn.
ARKA – Name three myths about investing that are not actually true.
A. Khachatryan – You’ve already mentioned the first: investing is for the rich. The second is the stereotype of “I don’t understand, I’m afraid,” which stems from financial illiteracy. The third is “investing is like gambling.” This is most common in Armenia.
ARKA – What realistic instruments do you recommend for starting investing with small amounts of money – stocks, bonds, ETFs (exchange-traded funds)?
A. Khachatryan – You can start with an ETF. This is an exchange-traded fund, meaning a collection of stocks, bonds, or other assets combined into a single “basket” and traded on the stock exchange like a regular share. You buy not just one share, but a stake in the entire fund – thereby immediately owning pieces of dozens or hundreds of companies.
For example, an S&P 500 ETF includes the 500 largest US companies. By purchasing one share of such an ETF, you essentially invest in all of these companies at once.
ARKA – Can we talk about profitability with such small investments, or is it more about developing investing habits and financial discipline in the beginning?
A. Khachatryan – We are as transparent as possible with our clients and the market as a whole. Clients must understand that there is a financial logic, strategy, and purpose at work here. We need to understand the investor’s goal, what they expect from us, and then, based on the amount they are willing to invest, provide realistic and transparent feedback.
With small amounts, we focus more on training, developing financial discipline, and financial literacy in this area. Only then, after some time, can we talk about investing larger sums.
ARKA – Freedom Broker Armenia operates in international markets. What opportunities are available to Armenian investors with small amounts? Is there access to global stocks and ETFs? A. Khachatryan: Firstly, through our platform, people can invest in large companies such as Microsoft, Tesla, and Coca-Cola. We offer a wide selection of international exchanges, including direct access to the New York, London, Hong Kong, and many other stock exchanges.
From this perspective, it’s very convenient for investors to simply open the app and find what they’re looking for, what they want to invest in.
ARKA – How do you assess the risks for investors with small portfolios? What should they know to avoid being swayed by hype or unrealistic expectations?
A. Khachatryan – Of course, risks are inherent in our segment of the economy. And in this regard, we are very close to our clients.
From the moment a client opens an account, we support them, showing them all the opportunities and conveniences they can take advantage of. And, of course, we try to guide them to the right place, where they feel most comfortable. For example, we provide analytical data so that they know what they’re investing in. We also have the Freedom Broker Armenia Academy, which is specifically aimed at developing financial literacy. By completing all stages of training at our academy, clients minimize their risks and learn to independently understand their investment decisions.
ARKA – Given the growing interest in financial literacy in Armenia, please tell us about the activities of the Freedom Broker Armenia Academy.
A. Khachatryan – This is our unique financial academy, which implements educational programs. We offer free webinars in Armenian, accessible to all our clients, including potential ones. These sessions provide basic information about the market, our company’s activities, and, in general, how the stock exchange works, as well as stocks and bonds. In other words, it’s a campaign to improve the financial literacy of the Armenian population.
The Academy also offers additional products for more in-depth study of financial instruments, such as technical analysis. In this regard, we are segmented to suit the needs of all our clients, from beginners to more experienced ones who want to hone their skills.
Our Academy, which opened in 2024, has already trained over 20,000 people, and organized over 150 webinars and four offline trading sessions.
ARKA – What role do digital tools and neural networks used in brokerage services play in supporting novice investors?
A. Khachatryan – Here’s an example of our app, Freedom Broker Armenia, which has been improved and meets all the standards of the modern technology market. The app integrates a variety of tools, allowing users to simply buy or sell securities right now with the click of a button. This is a step towards convenience and comfort for our clients.
ARKA: And finally, what advice would you give to those just taking their first steps and afraid of losing even a small amount? What’s the best way to begin an investment in the Freedom Broker Armenia ecosystem?
A. Khachatryan: I would advise, first and foremost, having a goal, a starting amount, and an investment strategy. Returning to the topic of myths, many people want everything right away, but they need to understand that the market works differently.
You need to have a long-term understanding of this process. You need to understand that the market has historically been constantly growing. Therefore, when someone says, “I’m waiting for the right time to start,” we always tell them that the right time will never come.
There’s a term called “lost opportunity,” which means, for example, six months later you realize you should have started then. Therefore, you need to start now. The market is developing, advancing, growing, and there will never be a better time than now.
“ARKA” – To summarize, what are the key conditions for starting investing?
A. Khachatryan – Having a strategy is important, but only financial literacy can provide it. Investing with a specific strategy requires knowledge. It’s important to note that the investment culture in Armenia is developing. Compared to, say, three years ago, the difference is huge. But if we compare it to global practices, we certainly have room to improve.
Freedom Broker Armenia focuses its activities, among other things, on raising the level of financial literacy among the population, explaining how investments work, why it’s important to invest, and why capital diversification is essential. And I hope we’ll soon see progress in this area. I believe that within the next two years, we will see a noticeable difference in the number of financially educated people, thanks in part to our Academy and the tools, prospects, and learning opportunities it provides.-0-
