Stock markets are having a rough time but interest in stock trading apps is shooting through the ceiling, according to companies and industry trackers.
Across the board, speculative stock trading apps offered by startups like Robinhood to Savings Investment apps like Acorns and established companies such as Etrade, future investors are looking into trading even as the market is in a volatile situation.
Stock markets are having a rough time but interest in stock trading apps is shooting through the ceiling, according to companies and industry trackers.
Across the board, speculative stock trading apps offered by startups like Robinhood to Savings Investment apps like Acorns and established companies such as Etrade, future investors are looking into trading even as the market is in a volatile situation.
Following declines over the past week, stocks have been coming back with major market indices posting the largest gains since the financial crisis of 2008. Over the same period of time, Robinhood had suffered early outages as the market began to swing. But now, it has shown some of the biggest growth numbers of the year.
According to the data provided by Robinhood, the company has seen almost 10 times the net deposits for the month vs its monthly average in the fourth quarter of 2019. Volumes in daily trading are up more than 3 times the monthly volumes they recorded in the fourth quarter of 2019.
Robinhood’s data over the period reveals that downloads have not slowed down since the early month outages. While Robinhood might be one of the beneficiaries of the market, it’s not the only one.
Recent customer growth at Acorns hit a new high with 9,800 sign-ups last week during a time when stock markets recorded their second-worst day of trading since 1987. This sign-up figure is approximately 45% more than the company usually records. Recently the company hit a milestone of 7 million sign-ups.
The increase in interest reveals that users of trading apps have confidence in the long-term health of the markets and are not scared off. While the market is down, the chief executive officer of Acorns said: “It’s on Sale”.
He added, now is the time when investors will see the largest gains from getting into the market. Taking your money out of the market will lead to losses.
Keep in mind, the positive side, what the President places on the market may be adding to an increase in awareness among other Americans.
The President and his Administration have brought a great deal of focus on economics and the markets. There are a lot of products in technology, especially those that have prioritized financial education, spreading information in simple, digestible ways. Since the message was announced that the market is for sale, many people are taking advantage of it.
Many of the biggest names in stock trading are enjoying new boosts in downloads and activity. Etrade is showing an increase in interest from new investors, according to the App Annie data.
We might be in difficult times but what goes down must come back up and our economy, the stock market, and life will come back up and return to a place of normalcy