France’s AMF study shows record inflow, activity by retail investors

abdelaziz Fathi

A study conducted by the Autorité des Marchés Financiers (AMF) showed that the pandemic spurred a flood of new retail investors into the stock market in 2021.

The fifth edition of the AMF’s Active Retail Investor Dashboard saw a record inflow of new private investors, taking the overall number of individuals with brokerage accounts to 1.1 million over the last three years.

Retail investors’ activity just wrapped up a record year in 2021, with 1.6 million accounts carrying out at least one transaction on shares, a 19% increase compared with a year earlier. In the quarter just ended, 743,000 traders placed at least one order to buy or sell shares. The figure was in line with previous quarters, with the exception of the second quarter when volumes were boosted by IPOs, the AMF said.

Other highlights show that retail trading volumes more than doubled in the last two years compared  to the turnover observed in 2018 and 2019. This came as market volatility and Covid lockdowns created a unique opportunity for regular investors to play the stock market’s unprecedented rally.

Specifically, retail investors’ stock transactions were almost 13 million in the Q4 2021 and over 55 million trades for the whole year. These annual volumes match those achieved in 2020 when many French turned to trading as the central banks slashed rates to record lows, making banks’ deposits less attractive.

FX and CFD brokers must go multi asset: Join free webinar from TraderEvolution to learn how

A big part of this growth was driven by first-time investors. However, the AMF found that these new investors are not just young people, they are also those elder but discovering investing for the first time.

In particular, the AMF survey showed that 217,000 had never placed a stock market order before or had been inactive since January 2018. The flow of new investors remained steady but seems to have levelled off at around 50,000 per quarter, the AMF notes.

Retail investing had been on the rise even before the Covid-19 crisis hit the world. But the novel virus gave just the push required to send young investors to the financial markets.

AMF recommends that traders seeking to invest in France do so only with financial institutions authorized to do business in the country. Further, the AMF warns market participants that “any unauthorized intermediaries run the risk of criminal sanctions” and advises against responding to offers from any broker on the published lists.

Any financial intermediary offering or recommending investments must be on the list of financial institutions authorized to do business in France, as can be verified via www.regafi.fr. A list of authorized intermediaries in additional investor adviser categories can be accessed on orias.fr/search.

Read this next

Digital Assets

SEC denies First Trust Advisors-SkyBridge application for Bitcoin ETF

The US Securities and Exchange Commission (SEC) has again rejected another bid to list a spot bitcoin exchange-traded fund (ETF), which is widely seen as a proxy into crypto for millions of retail investors.

Technology

Crypto fund Modus.Trade taps Gold-i to manage its technology infrastructure

Modus.Trade, which operates an investor network, online learning platform, and suite of algorithmic trading strategies, has selected FinTech company Gold-i to manage its entire technology infrastructure.

Industry News

Ripple’s “biggest victory” triggers XRP Holders’ request for unprivileged SEC meetings

“The biggest victory for Ripple and XRPHolders, from Judge Netburn’s recent decision, isn’t necessarily the email with the Draft version of the Hinman speech.”

Retail FX

Fintech Alpaca poaches Pepperstone Cyprus head Victor Zachariades

Victor Zachariades, who joined Pepperstone in 2019 to head up its Cyprus operations, has left the FX firm to join Alpaca, a stock brokerage that allows developers to build apps, services, and trading platforms.

Industry News

Public.com acquires HyperCharts to improve broker’s data visualization

“One chart is worth 1,000 numbers. We built HyperCharts to make financial analysis easy, fun, and approachable for the masses by turning complex SEC filings into simple, interactive charts.”

Institutional FX

FX HedgePool launches mid-month roll cycle for better pools of peer liquidity

“By introducing this new cycle, we’re offering the buy-side greater choice with respect to accessing safe and transparent pools of peer liquidity.”

Digital Assets

Robinhood launches Beta version of crypto wallet

Wallets will allow Robinhood users to send and receive their crypto from Robinhood to external crypto wallets, fully connecting Robinhood crypto holders to the greater blockchain ecosystem for the very first time – a major milestone for the broker’s venture into crypto.

Industry News

JKO Play drops out of running to acquire Playtech

A consortium called JKO Play, led by former Formula 1 boss Eddie Jordan and gambling industry veteran Keith O’Loughlin, has pulled out of the race to acquire Playtech.

Institutional FX

ABN AMRO launches fractional investing infrastrucutre, BUX is first broker client

“The launch of fractional investing marks an important new chapter in the normalization of investing in Europe.”

<