Retail traders have moved from the stock market's margins to its center, now accounting for roughly 30% of daily US equity volume according to Goldman Sachs. Their stock trading in May ran 10% above the previous record set during the January 2021 meme-stock frenzy, and June set another all-time high. Total options changing hands have topped 50 million contracts on multiple days this year, doubling levels from three years ago. Self-directed brokerage accounts hold an estimated $12 trillion in equities, about 10% of the US corporate equity market, while American households directly and indirectly own most of the $111 trillion market. Goldman's Bobby Molavi described retail investors as a price setter, a theme maker, and a flow driver all rolled into one, noting the flow now looks structural rather than episodic.
Goldman Sachs Group IncGoldman Sachs is the source of the report, highlighting retail trading growth which may boost its brokerage and execution revenues.
JPMorgan Chase & Co