How Millennials Trade Easily

Low-cost, mobile-friendly investment apps and platforms appeal to the high-tech lifestyle millennials were born knowing. Young investors easily adopt options that seem to level the financial playing field, offer no commission charges, and low entry barriers. Hence the popularity of apps like Robinhood and assets like cryptocurrency.

While “buy the dip” may be the current buzzword making it sound easy to trade, it is a strategy that isn’t quite so efficient in a bear market. While apps and platforms make it easy to trade on the go, trading without knowledge can wipe out any short-term gains. When the market is hot, assets are volatile and many millennials would be better off doing nothing at all vs. being quick to trade so easy!

The truth is that younger investors have a lifetime to accumulate wealth and are better off seeking more stable options initially. Making easy trades on individual stocks or assets is little more than betting and can result in gains being wiped out quicker than the click of a key.

Making it Easy to Trade

There are a couple of things that come to mind when pondering an investment platform that will appeal to young investors. Typically, millennials have the following in common:

  • Basic distaste for traditional financial markets
  • Smartphone dependency
  • Smaller amounts to invest
  • No experience in the markets
  • Appeal for convenience and instant gratification

The popular Robinhood app took all of these considerations to heart when releasing its wildly popular platform. The app successfully connected with a 90-million-strong generation and, despite service disruptions during some major market movements, continues to thrive.

Options to trade stocks and cryptocurrency without fees or barriers to entry have proven to be successful. Data shows that 14% of millennials say they already own Bitcoin, while 44% indicate plans to buy it within the next 5 years. Gold and silver have also seen a surge of trading activity as millennials begin to understand the damage governments creating money poses.

Millennials Trade so Easy Online

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Shifting Trends to Make Trading Easy

More experienced investors understand that retirement accounts are meant to remain untouched until they stop working, or at least as a last resort. Most first-time investors rarely prove to be market-beaters, but those that do make significant gains are hopefully making prudent decisions about the future. 2020 has many of us living under exceptional circumstances, so trade gains are often being used to offset lost income. Retirement funds set aside for the future is often not a top priority for the young. Yet 58% of millennials surveyed in the Transamerica Retirement Survey said they plan to retire by age 65.

Most younger investors want to use technology as a key component of the investment process, and they want autonomy over their financial decisions. Few millennials choose to work with a financial advisor and are more comfortable with a self-directed portal. The number of affluent millennials comfortable with using technology to manage their money is growing. While protecting their assets is important, they seek advice more from blogs, online forums, influencers, and apps that give them access to expert knowledge, analysis, and tools.

Digital investments and tech stocks are areas millennials feel they can own because they haven’t yet been bid-up, and are easily understood. They trade so easily when it comes to cryptocurrency and Tesla stock vs. bonds, equities, and property. It is quite easy for even the inexperienced investor to build a diversified, institutional-quality portfolio with peer-level professional support at a very low cost.

New products are surfacing that are attractive to young investors. Cloud computing, drone tech, the internet of things, autonomous vehicles, and other emerging technologies are more appealing as millennials grow older and realize that participation is power.