Invest
Retail investment spikes outlast lockdowns
Australian retail investors who entered the market due to the COVID-19 lockdowns are showing no signs of slowing down their investment strategies, new research has revealed.
Retail investment spikes outlast lockdowns
Australian retail investors who entered the market due to the COVID-19 lockdowns are showing no signs of slowing down their investment strategies, new research has revealed.
A report released by Investment Trends shows an estimated 1.43 million Australians have placed one or more trades in the last 12 months, up 35 per cent year-on-year.
Not only has there been a surge in retail investors entering the sharemarket, Aussies are also buying crypto assets for the first time.
In the last six months, the proportion of online investors who say they hold cryptocurrencies has increased sharply from 8 to 13 per cent, while a further 10 per cent say they intend to start investing in digital currencies over the next 12 months.
According to Investment Trends head of research Irene Guiamatsia, there has been a major shift in Australia’s investing landscape which continued through the first half of 2021.
“To put things into perspective, the number of active retail online investors, that is those who bought or sold securities in a 12-month period, has almost doubled compared to pre-pandemic levels, from 750,000 to 1,430,000,” she said.
While it was often predicted that the surge in online trading would be short-lived, as Aussies looked to pass the time during lockdowns, the report disputes this.
Investment Trends research showed that inflows of first-time investors remained healthy despite lockdown restrictions easing during the first half of 2021.
In fact, nationwide, 148,000 new online investors placed their first trade in the past six months alone, compared with 170,000 in the second half of 2020.
“It’s encouraging to see so many Australians starting their investing journey,” said Ms Guiamatsia.
Pointing to the surge in cheap retail trading platforms, the researcher highlighted convenience and ease of use are helping Australians begin their investment journey.
“Challenger brands like SelfWealth, Stake, eToro and Superhero are growing their footprint among these first-time investors with sharp pricing, feature rich platforms and mobile-first UX,” Ms Guiamatsia concluded.
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