In 2020, more than 25 percent of overall market trade was made by retail investors. This was up from 17.1 percent in January 2020.
There has been an exponential rise of retail investors in the United States of America thanks to flourishing online platforms as well as the cutting of fees required. This move has made the US be ahead globally in terms of retail investors.
There were more than 100 million accounts combined at six of the top brokerages in the United States. At the same time, the total assets of the clients at the two of the top retail-focused brokerage alone stood at more than 15.5 trillion dollars.
According to Generation Investor, 15 percent was the total amount of retail investors that started in 2020. The median age of retail investors in the United States is 35 down from a median of 48 before 2020. In fact, more than 1 million accounts opened in 2020 belonged to Generation Z with the age of 19.
In 2020, more than 25 percent of overall market trade was made by retail investors. This was up from 17.1 percent in January 2020. Today, retail investors could be as high as 35 percent of total US equity volumes.
What is happening in the United States of America in terms of the booming retail investors can be replicated in Kenya too. 74 percent of Kenyans are youth who are tech-savvy and always ready to try out new ways that technology has to offer.
Kenya is an innovative country and people are often looking for opportunities that can help them make money and wealth. Encouraging retail investments is the only way to help the Kenyan youth given the high unemployment rate.
In Kenya, giants such as EFG Hermes have come up with innovations that help with retail investments. They now have the EFG Hermes One App that is set to revolutionize and shift retail investment in Kenya.