3Q20 Global Retail Trends Report

3Q20 Global Retail Trends Report

3Q hit new record highs in account openings, number of trades and volume traded, outperforming market growth in the quarter. Retail investors are still highly engaged in spite of continued global economic uncertainty driven by the Covid-19 pandemic. Covid-19 continued to accelerate digital adoption and the paradigm shift towards embedded finance solutions globally.

Report Summary:


• Retail investors are still engaged and make up roughly 20% of the market’s overall daily volume1
• A 33% quarterly increase in account openings was largely driven by investors under the age of 30
• 3Q trading volume and asset growth significantly outpaced the markets — volume was up a
substantial 46% versus 11% in the NASDAQ and 8% S&P 500
• Assets soared 73% between 2Q and 3Q
• Trade activity reached a new record high – the number of trades executed in 3Q rose 6% over last
quarter
• Investors placed fewer trades on average in 3Q, however the average trade size was much larger
• Investors traded 10 times on average in Q3 vs. 12 in 2Q
• Average trade size rose 29% to $293 per trade in 3Q vs. $211 in 2Q
• Embedded finance is changing market dynamics, with over 32% of our orders being placed outside of market hours showing many retail investors are not day trading or trying to time the
market
• 3Q trading activity continued to be heavily concentrated in Big Tech, global brands and index
funds or ETFs, however there was a mix shift away from low-priced stocks which drove a 60%
reduction in the number of shares traded in the quarter
• We continued to see a stronger buy vs. sell bias at the open and overall throughout the quarter