Retail investor trading in the US: perspectives on trading preferences and behaviors

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10 March 2015
Ashley Globerman
Celent conducted a survey of retail investors across the United States to better understand this segment of the wealth management industry.In this report, we answer:
  • What is the average profile of the retail investor in the US?
  • How have retail investors' product preferences evolved over time?
  • How can firms capture and retain new and existing retail clients?
The aim of the report is to present a detailed picture of the online trading industry in the US from the perspective of the retail investor. Celent will conclude by stating its findings and making recommendations as to where wealth managers should potentially focus in the near term to capture retail investors. “The global financial markets, traditionally reserved for professional traders, are accessible to retail investors across all demographics and trading experience levels,” says Ashley Globerman, an analyst with Celent’s Wealth Management practice and coauthor of the report. “The profile and demands of retail investors, particularly those of self-directed investors, have evolved greatly over time.” The survey gauges their demographics, investing and trading behavior, product and service preferences, and technology adoption. The pool of survey participants ranges across all trading levels and demographics, such as age, gender, marital status, number of dependent children, and education and affluence levels. Some of the main findings of this survey are as follows:
  • The growth rate of self-directed investors continues to outpace that of non-self-directed investors.
  • Asset class preferences have changed slightly since Celent’s 2012 retail investor survey.
  • Dynamic client expectations continue to shape the wealth management industry.
  • There is investor demand for peripheral services outside of trading.
“As the wealth management industry and demands of retail investors continue to evolve, the importance of segmenting customers and adapting products and services based on their needs is increasingly critical in order for firms to remain competitive and gain broader market share,” says Isabella Fonseca, a research director with Celent’s Wealth Management practice and coauthor of the report.

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Asia-Pacific, EMEA, LATAM, North America