Retail trading surges to pre-pandemic levels
Look out, suits: After losing billions during the market’s downturn in 2022 and 2023, the apes and degens that brought you GameStop are back in a big way. According to WSJ, retail investors are now trading at volumes not seen since the pandemic’s trading heyday — thanks to a strong stock market.
- According to its latest metrics report, Robinhood reported its highest trading volume since Nov. 2021 — with over $81B invested in February alone.
- Charles Schwab and Morgan Stanley’s E*Trade also saw their highest daily trade volumes since early 2022 — while Interactive Brokers reported the most new account openings since Q1 2021, around the time of meme stock volatility.
Retail revolution: Robinhood investors made over $23B last year — taking a bite out of some of the $54B they lost in 2022. And with more brokers embracing fractional investing, after-hours trading, and even 24/7 trading, investors have more time to place trades than ever. However, not all brokers have been able to capitalize. Due to industry consolidation, at least 12 domestic brokers have closed since May 2020 — including Goldman Sachs’ Marcus Invest, which announced its closure last week.
