The Rise of the Retail Investor: What’s Next?

In January 2021 GameStop stock prices soared to a record high of $483 as thousands of retail investors cashed in on the meme stock trading phenomenon. One year on and this event has not revolutionised the financial world as some might have expected. But it did reveal that large-scale coordination among small traders has the potential to affect markets significantly and their power should not be underestimated.

Hosted by the Financial Times, in partnership with Capital.com, this panel discussion explored the role of retail investors in financial markets today and how education and engagement from financial institutions can help to protect against common trading mistakes and help novice traders/investors develop new skills and expertise.

The Pandemic

The pandemic pulled in new investors and traders into markets. However, they were given the wrong impression about markets thinking that everything always goes up. 

Young Investors & Traders

The majority of younger investors and traders are investing in higher risk products and not thinking about longer term investing, they are looking for short term gain.

Volatile Markets

Some individuals will make money from the volatile markets and others will find themselves in a very difficult situation, partly due to the significant increase in online scams.

Technology & Education

 The industry should harness technology to engage and educate younger generations. Social media platforms can be really powerful in diluting the effect of scammers and the industry should capitalise on these opportunities. 

ESG & Sustainability

ESG and sustainability investing is a good way to get people to engage in investing. Younger people are generally more interested in this area so we could see this take on more prominence in the next ten years.

Mitigating Risk

Trading with properly regulated platforms and speaking to a financial advisor can both help to mitigate the risks of investing. You also have to be aware about what you are prepared to lose. 

Understand

The big picture, not just the individual strands of the business you work in

Connect

And build relationships with some of the biggest names in your industry

Discover

New approaches and strategies to help win market share

FT Live Digital Dialogues - fully digital one hour event experiences delivering maximum engagement. Live webinars provide unique opportunities to engage global senior audiences. All access, digital passes include access to all the live sessions PLUS all sessions on demand for 30 days. Join the conversation.

© Financial Times Live

FT Live and its journalism are subject to a self-regulation regime under the FT Editorial Code of Practice