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Stock markets have taken a battering as the ongoing coronavirus pandemic continues to rattle global economies. But some young people are taking it as an opportunity to kick-start their investing careers.
Online stock trading platforms have seen a surge in demand in recent months as investors seek to take advantage of undervalued equities.
Investing app Robinhood saw “record” deposits in the first quarter of 2020, with daily trades up 300% compared to late-2019. Elsewhere, eToro and Raging Bull Trading saw demand surge 220% and 158%, respectively, over the same period.
Even as the severity of the outbreak and its implications for markets began to unfold in March, another online platform Wealthsimple Trade recorded a 54% surge in new users and a 43% uptick in total trades. So far in April, the trading site has added new users at a weekly rate of 7,000.
Many of those new users are young or even first-time investors. Over half (55%) of Wealthsimple’s new users are aged 34 or below. That is unsurprising, according to Raging Bull Trading’s founder, Jeff Bishop, who said many millennials are now looking for new opportunities to make some extra cash — or recover earlier losses.
“A lot of people are at home and have got more time on their hands. And many, unfortunately, have lost their jobs and are looking for new opportunities,” Bishop told CNBC Make It.
“Younger investors are looking for ways to recoup their money,” he continued. “They’re really interested in low, beat-up stocks.”