Retail investing finished strong in 2020 as a heavy news cycle comprised of the U.S. presidential election, COVID-19 vaccine rollouts, notable IPO happenings, and general market movement contributed to new highs for account openings (particularly from digital wallets), asset growth, number of trades, and volume traded in 4Q.
Some of the key findings from our proprietary data
- Quarterly trading volume and asset growth outpaced the markets once again, rising 40% and 59% respectively between 3Q and 4Q, vs. S&P 500 at 12% and NASDAQ at 15%
- Investors aged 60+ traded the largest amounts every quarter and overall in 2020, while the largest percentage growth in account openings was driven by investors under the age of 20
- 2020 finished the year strong − total accounts were up 275% over 2019, while funded accounts closed the year up 277%