

households have accumulated about $1.5 trillion in "excess" savings that should rise to about $2.4 trillion by the middle of 2021. equity strategist David Kostin said the abundance of household cash should continue to fuel the retail trading boom.

"The retail traders are becoming a much larger and larger component of overall volume," Randy Frederick, vice president of trading and derivatives at Charles Schwab said on a webinar on Wednesday. Institutional investors might have to start paying more attention to the little guy given their ever-increasing presence in the market.īy using "big data," Goldman Sachs' derivatives team determined that the dollar value of small-lot trades-a proxy for retail trades - has risen by 85% over the past year, leaving small traders a much more powerful market force, the firm said. While the wild trading the occurred in January is unlikely to recur, the volatility could persist as retail investors grow in their overall influence in the stock market. The brick-and-mortar retailer popped 40% on Wednesday, for no apparent reason, and then turned negative minutes later. GameStop is still seeing some wacky trading in March.

Fidelity, E-trade, TD Ameritrade, Coinbase and Webull all saw elevated app downloads in February. However, the brokerages' reputations seem to be intact. Investors found themselves embroiled in a major trading saga with a number of heavily-shorted stocks, including GameStop, unexpectedly skyrocketing in late January amidst a boom in retail trading.Īt the height of GameStop's surge, Robinhood and other brokers restricted trading of certain securities due to increased capital requirements from clearing houses.
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"App download activity that began 2021 with tremendous momentum, surging during the days of the Reddit/social media short squeezes, but has still remained well above average, even as the news cycle and traders' attention changed," JMP analyst Devin Ryan told clients.
