264,000 Singaporeans have placed online trades on stocks/ETFs in the last 12 months
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Word-of-mouth recommendations have been particularly effective in recruiting new-to-market online investors over the past year
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Switching activity amongst investors has heated up and is likely to remain elevated
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Across age cohorts, Singaporean online investors desire a greater alignment of their portfolio with ESG principles
28th February 2024, Singapore – Leading financial services industry research firm Investment Trends releases its 14th annual edition of the 2023 Singapore Online Investing Report.
Providing an in-depth analysis of the Singaporean online investing market, examining the attitudes, needs and product usage of active online investors, this year’s edition highlights:
The report revealed that a significant number of Singaporeans, totalling 264,000, have been active in online trading of stocks and ETFs in the past year. Notably, Singapore leads globally in attracting new online investors through word-of-mouth recommendations, a trend that underscores the influence of personal referrals in the industry.
"The surge in Singapore's online trading activity, particularly the rise in word-of-mouth referrals, marks a significant shift in how new investors are entering the market. This trend reflects the robustness and evolving nature of the Singapore online investing landscape,” commented Brian Chong, Head of Client Services & Sales: International at Investment Trends.
An emerging trend is the heightened switching activity among investors, with 27% expressing interest in opening new online investing accounts within the next 12 months, marking an increase from 19% in the previous year. This reflects a dynamic and competitive environment in online investing.
"This increased intended switching activity points to a more dynamic and competitive sector," adds Chong. "Where investors are becoming more discerning and proactive in their investment choices."
Furthermore, across all age cohorts, there is a discernible shift towards ESG-aligned investment strategies. Singaporean online investors are increasingly seeking to align their investment portfolios with Environmental, Social, and Governance (ESG) principles, indicating a broader trend towards responsible investing.
"The shift towards ESG-aligned investing is not just a trend but a paradigm shift in Singapore's investment culture. It reflects a deeper understanding and commitment to responsible investing,” concluded Chong.
About the report
The Investment Trends 2023 Singapore Online Investing Report provides a detailed analysis of the Singaporean online investing market, examining the attitudes, needs and product usage of active online investors. Based on a survey of 2,329 investors and traders conducted from August to September 2023.
