Strong inflows, lower dormancy – Despite a decline, new-to-market French online investors resemble pre-pandemic profiles, with higher average age and larger portfolios.
Novice investors, AI focus – 30% of online investors in France are beginners, highlighting the need for education. AI is expected to aid with data analytics and portfolio optimisation.
Derivatives shift, reactivation up – Retail listed derivatives traders in France are down for the third year, but dormancy rates have dropped, and listed derivatives are preferred for transparency and smaller trades.
16 September 2024, Paris – Investment Trends has released its 2024 France Online Trading and 2024 France Listed Derivatives Reports highlighting significant shifts in investor behaviour and opportunities for brokers. The reports reveal key trends in investor profiles, education needs, and trading preferences as the market adapts to changing dynamics.
The latest data shows that the number of active online investors in France has slightly declined by 8% in the past year, compared to 17% in 2023. Despite this, the market remains buoyant due to strong inflows of new investors and reduced dormancy rates. New investors increasingly resemble pre-pandemic profiles, with a higher average age and larger portfolio sizes, suggesting a shift towards more seasoned market participants. The data also shows that new investors are enticed by the ability to invest using small amounts, while reactivators are increasingly driven by commission-free trading and a wider range of investments.
Lorenzo Vignati, Associate Research Director at Investment Trends, said: “France’s retail online investing market shows positive signs – stronger inflows of new-to-market investors and a lower dormancy rate compared to 2023 – even as online investor numbers decline for the third consecutive year. Brokers have a critical opportunity to engage with this more experienced investor base, offering tailored services that match their larger portfolios and specific needs.”
The reports also show that 30% of online investors in France rate their own level of investing knowledge or expertise as ‘novice’ or ‘advanced beginner,’ emphasising the critical role of education, especially for new online investors. This group is looking for guidance, with financial media as the most trusted information source and generative AI tools expected to have a positive impact on their trading activities.
Copyright 2024: Investment Trends. 2024 France Online Trading Report
“The demand for education among newer investors, with three in five online investors expecting generative AI tools to have a positive impact on their trading activities – opens a valuable opportunity. Providers that offer robust educational resources and tools will be best placed to support novice traders and help them build confidence, ultimately increasing engagement and trade frequency,” Vignati added.
The data also highlights that retail listed derivatives traders have declined for the third consecutive year, but at a much slower pace than the preceding 12-month period. On a positive note, dormancy rates fell significantly, and the number of client reactivations is on the rise. The data indicates that listed derivatives are gaining preference over CFDs, with investors increasingly attracted to transparent pricing, better risk management, and smaller trade sizes.
“The increased reactivation of dormant traders, coupled with a growing preference for the simplicity and clarity of listed derivatives, signals an opportunity for brokers to capture more market share in France by focusing on transparency, trading ideas and strategies, reduced costs, and risk management tools. These are key differentiators in a competitive landscape,” noted Vignati.
For more information on the 2024 Online Trading and Listed Derivatives Reports, please contact Kabir Lakhani, Business Development Manager at Investment Trends at: Email: k.lakhani@investmenttrends.com or Phone: +44 203 865 9881.
About the report
The results are drawn from the Investment Trends 2024 France Online Trading Report and the 2024 France Listed Derivatives Report is based on an in-depth study of n=7,625 respondents which concluded between May to June 2024.
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