Retail online investor numbers climb as sentiment reaches 10-year high
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20 January 2025, Sydney – Investment Trends has released the 31st edition of its 2024 Second Half Australia Online Investing Report, uncovering key trends, investor behaviours, and opportunities shaping the online investing landscape.
The report shows that investor sentiment has further strengthened, with online investors expecting a 6.3% annual capital return from domestic stocks, up from 5.3% in May 2024. This optimism has translated into increased participation, with 1.33 million Australians placing at least one online cash equity trade in the 12 months to November 2024, up from 1.28 million in May 2024. Declining dormancy and consistently high reactivation rates underpin this growth, making Australia the only country among eight surveyed to report year-on-year increase in online investor numbers.
Investment Trends Copyright 2024: Second Half Australia Online Investing Report
“This data reflects a strong wave of confidence among Australian investors,” said Yiğit Günhan, Senior Analyst at Investment Trends. “With sentiment at a 10-year high and returns expectations climbing, dormant investors are re-entering the market in historically high numbers. It’s a testament to the resilience and adaptability of Australia’s retail investing landscape.”
The report also highlights the growing prominence of ETFs and international equities, which now account for 20% of a typical online investor’s portfolio, up from 17% six months ago. ETF adoption has risen sharply, with 37% of online investors holding these assets, up from 31%. Similarly, 34% of investors now hold international shares, with latent demand for this product also surging.
“The rising allocation to ETFs and international equities demonstrates a clear pivot toward diversification and global opportunities,” noted Günhan. “Australian investors are increasingly seeking efficient, cost-effective ways to build their portfolios.”
Brokerage/fees remain the primary consideration for international equities investors, with47% selecting their broker based on brokerage/fees, but the report highlights significant gaps in understanding trading costs beyond brokerage, with 18% of investors unaware of FX fees charged by their international equity platforms.
“The results show that greater fee transparency is crucial for building trust,” concluded Günhan. “With fees being a key factor for investors choosing international equity brokers, platforms with clear and transparent fee structures can build trust and stand out in a competitive market”.”
About the report
The Investment Trends’ 2024 Second Half Australia Online Investing Report is based on a survey conducted from October to November 2024, capturing responses from 11,625 participants, including 7,043 current online investors. The Report is the largest and most comprehensive independent study of the retail online investing market in Australia.
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