Retail investors are significantly lowering their buy thresholds during market declines, creating new opportunities and challenges for brokers. An eToro survey of 11,000 investors across 13 countries reveals 26% now enter positions after just a 5-10% drop, up from 22% last year, while those waiting for declines exceeding 20% fell from 13% to 11%.
This shift suggests client activity could spread across routine volatility rather than concentrating during major crashes. Products like fractional shares and automated contributions may see increased demand as investors buy more frequent, smaller dips. EToro data supports this trend, with capital markets trades jumping 59% year-over-year to 64 million in May, though average trade size dropped 36% to $201.
Brokers including CMC Markets, Swissquote, and Webull UK have rolled out fractional investing products with minimal entry points. Cash management tools offering competitive yields may also prove valuable for keeping uninvested balances ready for pullbacks.
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FXnCO Insight
** Brokers should prioritize fractional products and competitive cash yields to capture more frequent, smaller-scale dip-buying activity while ensuring compliance with engagement regulations.
Source: Finance Magnates