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.
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 Type (Jan-March 2020) | Average Age |
| Male | 39 |
| Female | 41 |
| 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.
Bond. Long Bond(s)
With real rates being too positive, we see three scenarios: Opportunity to lock in rates at cycle high, government overreach to keep the economy afloat or a complete reset of the economy.
Steen Jakobsen,
Chief Investment Officer
Is a bond bull market ahead? Inflation still poses a risk for investors, but the moment for increasing duration to your portfolio may be approaching towards the end of the year, when central banks might be forced to cut interest rates.
Althea Spinozzi,
Senior Fixed Income Strategist
The furious rate hike cycle has brought gains in the US dollar, but with stagflation risks in Europe and the UK and weakness in the Chinese economy, USD may have more room to run. But a strong dollar could also have repercussions for US growth, emerging markets and commodity prices.
Charu Chanana,
Market Strategist
With the cost of capital rising painfully, stagflation fears are back, illuminating the fragile state of the green transformation, while giving a tailwind to nuclear power, and threatening the growth of AI-related stocks.
Peter Garnry,
Head of Equity Strategy
With supply tightness not only in energy but all commodities, the momentum in commodity prices may continue, pressuring central banks to lower real rates. That could be a good setup for precious metals, including gold, silver and potentially platinum as well.
Ole S. Hansen,
Head of Commodity Strategy
As the pandemic showed, even the US Treasury can experience seismic shifts. With the government increasing the pace of issuing bonds to support fiscal spending, the complex Treasury market and regulatory constraints could spark a liquidity event.
Redmond Wong,
Market Strategist
The tide has turned for bonds. Given the current yields, bonds have become an attractive investment, with added benefits including lower risk than stocks, increased diversification and a steady stream of income unaffected by economic changes.
Peter Siks,
Investment Coach
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)
