FINRA Foundation Research Examines Changing Investor Demographic

January 4th, 2023, 2:21 PM

A new study by the Financial Industry Regulatory Authority's (FINRA) Investor Education Foundation (FINRA Foundation) reveals interesting facts about the new generation of younger and less experienced investors.

The study "Investors in the United States: The Changing Landscape", suggests that younger investors are more likely to engage in riskier investment behaviors, with a third of them considering cryptocurrency investments.

The study also found that investors aged 18 - 34 are more likely to invest for reasons including social responsibility, entertainment, or social activity. They are more comfortable using mobile trading apps, gathering investment information from social media, and trading higher-risk investments, even though they generally are less prepared for the risks of these types of investments.

According to the study, many in this new generation of investors are unaware of or confused about the various fees they may incur. 21% of investors do not believe they pay any fees for investing. 17% of survey participants indicated that they do not know how much they pay in fees.

The insights from the study can assist policymakers, regulators, and educators in reconsidering the tools and channels necessary to educate and protect both long-time investors and this new generation of investors.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.

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Blog

FINRA Foundation Research Examines Changing Investor Demographic

January 4th, 2023, 2:21 PM

A new study by the Financial Industry Regulatory Authority's (FINRA) Investor Education Foundation (FINRA Foundation) reveals interesting facts about the new generation of younger and less experienced investors.

The study "Investors in the United States: The Changing Landscape", suggests that younger investors are more likely to engage in riskier investment behaviors, with a third of them considering cryptocurrency investments.

The study also found that investors aged 18 - 34 are more likely to invest for reasons including social responsibility, entertainment, or social activity. They are more comfortable using mobile trading apps, gathering investment information from social media, and trading higher-risk investments, even though they generally are less prepared for the risks of these types of investments.

According to the study, many in this new generation of investors are unaware of or confused about the various fees they may incur. 21% of investors do not believe they pay any fees for investing. 17% of survey participants indicated that they do not know how much they pay in fees.

The insights from the study can assist policymakers, regulators, and educators in reconsidering the tools and channels necessary to educate and protect both long-time investors and this new generation of investors.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.

Return to All