"Generation Investor” was a term coined by Charles Schwab to account for the surge in retail investors who opened their brokerage accounts during the pandemic. This surge isn’t simply a temporary uptick of short-term investors looking to capitalize on recent market volatility. A confluence of macroeconomic, demographic, and technology-related factors indicate that this is believed to be a sustainable trend that will continue to capture a steady influx of new investors. This report explores driving factors including investing accessibility, paradigm shifts, and the growing participation of the Mass Affluent wealth segment.

As retail investing is made more accessible and the average age of an investor decreases, FIs are aggressively expanding to lower wealth segments. In response, retail investor platforms are undergoing an aggressive modernization phase, hoping to capture the lion’s share of this opportunity. As a result of these shifts, online brokerages should be focusing on expanding to the full spectrum of brokerage service offerings, to not only provide clients with choice but to also service them as their investing requirements evolve. This report examines why retail investing is changing and what online brokerages are doing to prepare.