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Retail investing across the world
01:42 Mins Read
Find out how retail investors make up the stock markets across the world.
Transcript
In recent years, retail investors have been flooding stock markets across the world. Robinhood, the stock-trading app, was one of the key driving forces behind the influx of retail investors in the American markets last year. A J.D. Power survey found that more than 10 million new brokerage accounts were opened in 2020! Meanwhile, China’s stock markets host over 177 million retail investors - or individual traders! In comparison with the US markets, that’s massive! To put this in perspective, data from 2019 shows that the US markets were dominated by institutional investors, with a population of 62%. But China’s stock markets were dominated by retail investors - who made up 99.6% of the total investor population. Japan’s retail traders aren’t far behind, either. The pandemic proved to be the catalyst, pushing the retail investor population from 16% before COVID to 21% after. All in all, retail investors are gaining ground in stock markets across the world. All that remains is to see how this trend shapes up in the coming years.