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October 3, 2024, New York – Investment Trends has released key findings from its 2024 US Online Investing Report and 2024 US Active Trader Report, revealing significant shifts in US online investor and active trader behavior, and new engagement opportunities for brokers.
The findings show that US retail online cash equities investor numbers declined by 3% over the past year to 11.08 million, with inflation the top concern. Positively, reactivation rates are robust, and dormancy remains low at 20%, compared to other markets. DIY investors are diversifying, turning to ETFs and high-yield savings accounts. Frequent traders—those placing 48 or more trades annually—now represent 28% of investors contributing to 81% of retail trading volume.
“Frequent traders drive the majority of U.S. online trading activity, and the low dormancy rate signals strong engagement,” said Lorenzo Vignati, Associate Research Director at Investment Trends. “U.S. brokers need to prioritize their frequent trader strategies to drive trading volumes within this high-value segment.”
The reports show that active traders—those placing over 120 trades a year—continue to embrace ETFs, while 60% are still committed to sophisticated instruments like options and futures. This trend is also reflected among U.S. retail traders, with 1.23 million trading futures and options.
“Options and futures trading is a lucrative yet underserved segment in the U.S,” added Lorenzo Vignati. “As these traders typically take longer to transition, brokers have a clear opportunity to engage earlier and faster in the journey—with targeted education—to capture this burgeoning market.”
What education/information would be very useful to you regarding options trading?
Among options traders
Top 5 options cited shown
Copyright 2024: Investment Trends. 2024 US Active Trader Report
The report also highlights that despite the promising potential within the high-value active trader segment, overall satisfaction declined over the 12-month period, with 70% calling for improvements to their broker’s research and trading ideas.
“These results clearly show that active traders are demanding more, and U.S. brokers cannot afford to be complacent,” concluded Vignati. “Brokers who act and respond have the potential to secure a greater share of this burgeoning market.“
About the report
The insights presented are drawn from a comprehensive study of n=5,468 US online investors conducted by Investment Trends from June to July 2024. The report delivers actionable insights and critical data, helping financial professionals understand the latest trends and make informed decisions in these dynamic markets.
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