Several online trading platforms are experiencing a record number of new account openings as generation z and millennials flock to trade online.
It would appear that trading on the stock market is no longer the domain of stuffy, middle class men in suits. Data released from several online trading platforms including Hargreaves Lansdown and AJ Bell has revealed that a large volume of young investors are rushing to open accounts and start their investment journey. Hargreaves Lansdown reported a record 84,000 new clients in the second half of 2020, and whilst these won’t all be young traders, their data suggests that this is the generation making up the lion’s share of new accounts.
Certainly the emergence of the online arena has made investing more accessible to this generation, an account can now be opened in mere moments from the comfort of your sofa and investments can be made with as little as £1. However, there is little doubt that the pandemic has played its part, with lockdown leaving millennials with time to spare in order to acquaint themselves with the market. As pub money quickly becomes savings, volumes of share dealing have risen by 123% as the young respond to economic challenges and start investing in their own future.
But whilst the boomers might roll their eyes at the green enthusiasm of youthful enterprise as seen in misguided investment in stocks such as Bitcoin, Gamestop and Tesla, there is no doubt that this generation have taken to the market in numbers and therefore represent a force to be reckoned with. The younger generation certainly seem to be engaging in saving and investing and now they can bypass the Financial Advisor who is only interested in investors with significant assets, there is nothing to stand in their way.