The engagement of retail investors is increasingly notable, with over 1.5 million buying or selling shares in 2022 and an average daily investment of $1.51 billion into U.S. stocks. 

Interestingly, about 15% of these retail investors initiated their journeys in 2020

To provide a clearer perspective on this trend, I’d like to share the most important retail investor statistics that are crucial to note immediately. 📈💰🌐 

Retail Investor Statistics: The Key Data

  • Over 1.5 million retail investors bought or sold shares in 2022.
  • Every day, retail investors poured $1.51 billion into U.S. stocks.
  • 69% to 84% of retail investors experience losses.
  • Retail investors make up 10% of the 3,000 largest U.S. stocks’ daily trading value.
  • About 15% of retail investors started in 2020.
  • 95% of retail investors live outside of major financial centers and earn average wages.
  • Retail investors now account for approximately 52% of global assets under management.
  • Retail investors account for nearly 20% of stock market activity in the United States.
  • Retail investors bought stocks worth $76 billion during a three-month period ending on May 24, 2022.
  • Retail investors’ share of total trading volume rose from just above 10% in 2011 to over 22% in 2021.

Sources: (AMF, Yahoo, Coin Telegraph, Reuters, Contrary Research, Investing In The Web, Insider Inc, The Street.)

More Retail Numbers: Retail Statistics

2022 Witnessed 1.5 Million Retail Investors Dive into Share Trading.

Important takeaway:

Insight from DataRationale
Retail investors became active stakeholders in the marketThe participation of over 1.5 million retail investors in 2022 demonstrates a notable increase in market engagement from individual, non-institutional investors.
Financial democratization is potentially on the riseSuch a significant figure might indicate easier access to trading platforms, heightened financial literacy, or broader socio-economic trends encouraging personal investments.
The market landscape is more diverse and decentralizedWith this influx of retail investors, the market dynamic possibly shifts towards a more pluralistic model, with power and influence spread across a larger base rather than being concentrated among institutional players.

Source: AMF

U.S. Stocks Receive Daily Infusion of $1.51 Billion from Retail Investors.

Important takeaway:

Insight from DataRationale
Retail investors exhibit profound daily financial engagementA daily inflow of $1.51 billion underscores the scale and commitment with which retail investors are impacting the U.S. stock market.
The landscape of U.S. equities is witnessing a democratic shiftSuch a significant daily investment suggests that the influence and footprint of individual investors in the U.S. equity market are more pronounced than ever.
The importance of retail sentiment cannot be underestimatedGiven the massive daily capital flow, market analysts and stakeholders must prioritize understanding and gauging retail sentiment as it is evidently shaping market dynamics.

Source: Yahoo

Losses Hit Between 69% and 84% of Retail Investors.

Important takeaway:

Insight from DataRationale
A significant proportion of retail investors navigate choppy watersWith a range of 69% to 84% facing losses, it’s evident that retail investing, while offering potential rewards, carries substantial risks.
The market’s volatility and complexity challenge manySuch pronounced loss percentages highlight the unpredictable nature of the market and the steep learning curve many individual investors face.
Financial literacy and risk management are essentialGiven the high rate of losses among retail investors, there’s an imperative need for enhanced financial education, robust risk-management tools, and informed decision-making in the retail investment arena.

Source: Coin Telegraph

Retail Investors Contribute to 10% of Daily Trades in Top 3,000 U.S. Stocks.

Important takeaway:

Insight from DataRationale
Retail investors contribute significantly to the daily liquidity of major U.S. equitiesWith 10% of the daily trading value in the 3,000 largest U.S. stocks, retail investors have established a notable footprint in the market, indicating their importance in driving liquidity and potentially affecting price movements.
A wave of new entrants emerged in 2020The fact that 15% of retail investors began their journey in 2020 suggests a pivotal year for financial democratization, possibly driven by increased market accessibility and socio-economic factors stemming from the pandemic.
The stock market dynamics are increasingly influenced by diverse participantsGiven the influx in 2020 and their sizable daily trading share, retail investors are becoming a force to be reckoned with, making it essential for market analysts and stakeholders to understand and factor in retail sentiment and behavior.

Source: Reuters

2020 Marked the Starting Year for 15% of Current Retail Investors.

Important takeaway:

Insight from DataRationale
2020 marked a watershed moment for retail investingThe fact that 15% of retail investors embarked on their investment journeys in 2020 underscores a significant influx in a single year.
Factors beyond mere market trends may have spurred this surgeSuch a pronounced increase hints at broader socio-economic shifts, potentially driven by increased financial democratization, technological accessibility, or economic responses to the pandemic.
The new wave of investors reshapes market dynamicsWith this fresh cohort entering the arena, there’s a renewed necessity to understand the behaviors, strategies, and sentiments of these novice investors as they integrate into and impact the larger financial ecosystem.

Source: Contrary Research

95% of Retail Investors: Non-Metropolitan Dwellers with Average Earnings.

Important takeaway:

Insight from DataRationale
Retail investment transcends traditional financial epicentersThe statistic that 95% of retail investors reside outside major financial centers challenges the notion that stock market participation is limited to the financially elite or those within bustling economic hubs.
The average wage earner is now a market participantThis insight emphasizes that stock market investing is no longer the exclusive domain of the affluent; average wage earners are now significant players in the financial arena.
Financial democratization is more pervasive than previously perceivedThe broad geographical and economic distribution of retail investors underlines the increasingly accessible nature of modern investment platforms and tools, making the market more inclusive and diverse than ever.

Source: Investing In The Web

Retail Investors Command 52% of Global Assets Under Management.

Important takeaway:

Insight from DataRationale
Retail investors dominate the market.With over half of the global assets under management attributed to them, retail investors play a predominant role in the global financial ecosystem.
Institutional investors no longer hold majority.The shift indicates that power dynamics in asset management have changed, with institutional investors no longer being the prime movers.
The market is increasingly democratized.A larger proportion of retail investors implies greater access and participation by the general public in global financial markets.

Source: Yahoo

Retail Participation Accounts for 20% of U.S. Stock Market Activity.

Retail investors account for nearly 20% of stock market activity in the United States

Important takeaway:

Insight from DataRationale
Retail investors are key players in U.S. stock market.At 20%, their activity is significant and can influence market trends and movements.
Institutional and other entities dominate market activity.Despite the notable activity by retail investors, 80% of stock market activity is driven by larger entities and institutional players.
The U.S. stock market is diverse in its participants.The mix of retail and institutional participation indicates a multifaceted market landscape with varied interests and strategies at play.

Source: Insider Inc

Retailers Snapped Up $76 Billion in Stocks in Three Months Leading to May 24, 2022.

Important takeaway:

Insight from DataRationale
Retail investors exhibited strong purchasing power.The acquisition of stocks worth $76 billion in just three months showcases the significant financial influence of this group in the market.
The period ending May 24, 2022, was marked by high retail activity.Such a substantial purchase volume indicates an active and possibly bullish sentiment among retail investors during this time frame.
Retail participation can be a market trend indicator.The concentrated buying activity could reflect or influence broader market sentiments and trends.

Source: Reuters

Retail Trading Volume Share Leaps: 10% in 2011 to 22% in 2021.

Important takeaway:

Insight from DataRationale
Retail investors’ influence in trading has doubled.The ascent from just above 10% to over 22% demonstrates a substantial growth in retail investors’ trading presence over the decade.
The 2010s saw a democratization of trading.This increase signifies broader market participation, possibly due to enhanced accessibility and platforms catering to retail traders.
Institutional dominance in trading volume is diminishing.While still dominant, the increasing share of retail trading suggests that institutions’ relative hold on trading volume has reduced.

Source: The Street