US-based broker-dealer DriveWealth announced today thathit new record highs in the fourth quarter of 2020. DriveWealth monitors the activity of retail investors across its partner networks including the likes of Unifimoney, MoneyLion, and Revolut.
The fourth-quarter figures hit new record highs in the number of new accounts opening, trading volumes, and the number of trades. The retail investors remained extremely engaged in the trading space after the pandemic. The proprietary data from DriveWealth monitors the investment activity by individual investors across its wide network of global partners.
Some key findings from the fourth quarter show that retail investing finished on a stronger note in 2020. The total number of accounts rose by 275% during this period compared to 2019. The number of funded accounts also increased by 277% during the period on a yearly basis. On a quarter-on-quarter basis, the total number of accounts increased by 26% and the number of funded accounts increased by 22%. November was the strongest month during the quarter, which marked an increase of over 9% compared to October.
US and EMEA investors increase activity
DriveWealth suggests an increase in the number of accounts opened by US and EMEA -based investors during the week after the election of Joe Biden as US President. It also coincided with Pfizer and
Biontech announcing their COVID-19 vaccine.
The survey also revealed that investors who are under 20 years old opened new accounts at the fastest pace possible. Their numbers increased by 39% on a quarterly basis. The fourth-quarter figures were higher by 453% compared to the first quarter of 2020. The average increase in the overall age group was 56%. The report also suggests that the largest absolute number of new accounts were opened by people aged between 20 and 29. The second most active group was aged between 30 and 39 followed by those aged between 40 and 49.
DriveWealth also marked a 59% increase in assets compared to the third quarter, thanks to new accounts made by digital wallet investors. Deposits increased by 1,015% on a yearly basis.