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The Changing Traders of Saxo Markets
Saxo Stories 4 minutes to read
Saxo Group
Summary: The year 2020 brought the world many surprises that spurred a volatile market. As the market fluctuated, so did the types of individuals who signed up to our global platforms.
Since January 2020, we've noticed an influx of interest from retail investors, but how much of an impact has this interest had on the average demographics of our users?
Looking at our aggregated client base, we've been able to see the shift of the average profile of a trader in the UK and abroad has changed over the year. Additionally, we are able to see how events such as COVID-19 influenced the most traded stocks over the 14 months.
Trader profiles in the UK
2020 was a big year in terms of trading, but it seems that interest in the stock market is reaching a younger audience than ever. We’ve found that the demographic of people trading stocks has in the UK has shifted, with the average age of a trader dropping across the board.
Trader profiles 2020 (Jan – March 2020)
- The average new male trader in 2020 was 39 years old and the average new female trader 2020 was a 41-year-old.
| Trader Type (Jan-March 2020) | Average Age |
| Male | 39 |
| Female | 41 |
Trader profiles 2021 (Jan – March 2021)
- At the beginning of 2021, the average new male trader was 35 years old and the average new female trader is 38 years old..
| Trader Type (Jan-March 2021) | Average Age |
| Male | 35 |
| Female | 38 |
The average age of a UK trader decreased by six years between January 2020 and February 2021, this represents a significant percentage drop of 14.7% and indicates that a new generation of traders could be on the rise. However, the data shows that the age of new traders is now on the rise in March 2021*.
When looking at this on a gender basis, the average age of both male and female traders decreased over the last year.
Typically, female traders tend to be slightly older. At the beginning of last year, the average age of a female trader in the UK was 42, but this dropped by five years down to 37 – a drop of 11.3%.
Meanwhile, male traders are, on average, 35 years old. For men, the drop in average age since the beginning of 2020 has also been five years, down from 40 (13.6%).
There’s a clear shift towards a younger age group taking an interest in trading, across both genders.
What can be said for traders beyond the UK?
Much like in the UK, the average age of traders has also dropped worldwide, which indicates that the trends in UK trading are reflected further afield.The average age of a trader worldwide, in the first two months of 2021, was 35 years old, five years lower than where it was at the same stage last year (40). This is a significant drop (11.2%), again reinforcing the idea that younger people around the world are showing an increased interest in trading, with the pandemic likely to be a contributing factor.
It’s interesting to see worldwide that not only have we seen the age of a new female trader decrease by four years, but this could also be said for the male traders too.
Similarly, to the UK market, worldwide we have also found that the average female traders are generally older than males.
But why have these demographic changes occurred without much change in stockholding patterns?
According to Peter Garnry, Saxo Group’s Head of Equity Strategy, “the last couple of years’ bull market, improving labour market dynamics, a larger focus than ever by media on technology stocks, the rise of crypto has attracted many young people and women into the game of equity investing.
“Many arrived during the rebound phase last year when many people were forced into lockdowns, and this not only has shifted the profiles of traders, but also the approach to trading. This change in approach, or investor psychology, will be interesting to follow as there is a new generation of traders and investors who will learn how to engage in a full spectrum of bull and bear markets.”
Sources
All data relates to Saxo Markets internal data between January 2020 and March 2021
*Data accurate up to 17 March 2021
Similarly, to the UK market, worldwide we have also found that the average female traders are generally older than males.
But why have these demographic changes occurred without much change in stockholding patterns?
According to Peter Garnry, Saxo Group’s Head of Equity Strategy, “the last couple of years’ bull market, improving labour market dynamics, a larger focus than ever by media on technology stocks, the rise of crypto has attracted many young people and women into the game of equity investing.
“Many arrived during the rebound phase last year when many people were forced into lockdowns, and this not only has shifted the profiles of traders, but also the approach to trading. This change in approach, or investor psychology, will be interesting to follow as there is a new generation of traders and investors who will learn how to engage in a full spectrum of bull and bear markets.”
Sources
All data relates to Saxo Markets internal data between January 2020 and March 2021
*Data accurate up to 17 March 2021
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