[eMarketer] Digital brokers expand offerings to revive retail investor buzz
Feeling the squeeze from dwindling retail investor activity, digital brokers are branching out to keep customers engaged.
UK-based investment app Lightyear launched a new social investing feature called “profiles” in the UK and the EU. Profiles let users share personalized web pages showing their portfolio holdings, watchlists, and recent trades.
DriveWealth is expanding into crypto. The New Jersey-based API brokerage platform acquired Crypto-Systems so it can offer Bitcoin and Ethereum trading to partners and retail investors.
Overall trading volume has slowed for digital brokers due to thinning investor savings and a crowded marketplace that already includes industry heavyweights eToro, Robinhood, and Vanguard. Market participation by retail traders fell to around 18% at the end of January, after reaching 24% in the first quarter of 2021.
According to eMarketer, digital brokers are increasingly looking for novel ways to boost revenues and differentiate their product offerings from rivals to sustain growth. Incorporating social elements and crypto trading are two paths digital brokers may take, but other strategic options may also be pursued.