Investment Experience and its Effect on Financial Advisory Service Usage in Futures and Options Markets

Khalid Mehraj, Dr. Vinay Kumar

Volume 8 Issue 1 | Jun 2025

DOI: 10.31841/KJEMS.2025.176

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Abstract

This study examines the utilization of financial advisory services among investors in Futures and Options, highlighting the evolving relationship between trading experience and reliance on professional guidance. The findings reveal that while a significant majority of investors initially seek advisory services, their continued dependence on these services varies based on their level of experience. Novice traders demonstrate a strong reliance on financial advisors to navigate complex investment decisions, whereas more experienced traders tend to transition towards independent strategies. However, a considerable proportion of seasoned investors continue to value professional financial guidance for market insights and risk mitigation.
Statistical analysis confirms a significant association between trading experience and the likelihood of continuing to use advisory services. While trading experience fosters greater self-reliance, it does not eliminate the need for expert consultation. The study underscores the importance of tailoring financial advisory services to different investor segments. For beginners, structured educational programs, personalized investment strategies, and risk management support are crucial. Meanwhile, experienced traders benefit from access to advanced analytical tools, periodic expert consultations, and specialized market research. By aligning services with the evolving needs of investors, financial advisory firms can enhance their effectiveness and maintain long-term client engagement in the Futures and Options market.
Keywords: Financial Advisory Services, Futures and Options, Investor Behavior, Professional Guidance, Trading Experience