Online trading has its roots in the 1980s, but it wasn’t until the 1990s that the first online investing platform emerged. The early 2000s saw its real growth, fueled by the internet’s widespread adoption and the advent of user-friendly platforms.

Earlier generations struggled to make online trading mainstream, but it was the availability of affordable smartphones and high-speed internet in the 2010s that truly democratised access to trading. This shift, coupled with user-friendly mobile apps and the rise of social media, enabled younger generations to engage with investing in ways their predecessors could not.

Next Gen

In the United Kingdom, Millennials and Gen Z, collectively representing a population exceeding , are significantly influencing the financial landscape. Unlike their parents, 58% of them regularly tweak their investments, while 26% are already dipping their toes into futures. And 77% are exploring copy trading, showing they’re not afraid of tech-driven finance.

However, it is anticipated that Gen Z will soon Millennials by size and will represent a massive market for financial providers. Their digital-first upbringing has made them highly tech-savvy, enabling them to navigate the financial world with ease. As Gen Z’s influence continues to grow, financial institutions that fail to adapt to their needs risk being left behind.

Remaining relevant

In practical terms, younger investors in the UK are much more active and adventurous with their money online compared to older generations. This shift could lead to fewer interactions with financial advisors and a potential decline in traditional investments. To remain relevant in the face of Gen Z’s evolving investment preferences, financial institutions must prioritise sustainable and socially responsible investments,  embrace less mainstream assets like cryptocurrencies and collectibles, offer personalized financial education, foster trust and transparency.

Looking ahead

As we witness the rise of younger investors in online trading, it’s essential to recognize the profound implications this trend holds for the future of finance. Their unique perspectives, driven by technology and community, are not just transforming how we invest; they are redefining the very essence of financial engagement. By understanding and supporting this new wave of investors, we can foster a more inclusive and innovative financial ecosystem that benefits everyone.