Healthcare professionals, as well as authorities, underlined the importance of social distancing numerous times. Governments restricted the freedom of movement to curtail the number of new cases. Thanks to such efforts, countries avoided many problems related to coronavirus pandemic. Thus, millions of people spend more time at home and some of them started to use online stock trading platforms. This way, first-time investors have the opportunity to earn extra cash as well as to learn more about trading.
As a reminder, the coronavirus pandemic affected the stock markets. The New York Stock Exchange (NYSE) closed its physical trading floor. Thus, the NYSE switched to fully electronic trading.
Interestingly, online stock trading platforms have seen a surge in demand as investors would like to take advantage of undervalued stocks.
Online Stock trading platforms and huge interest
As stated above, due to restrictions, people started to spend more time at home. One of the best solutions to how to spend the extra time is to learn more about stock trading.
Interestingly, the investing app “Robinhood” saw record deposits in the first quarter of 2020. Moreover, in comparison with late 2019, daily trades rose by 300%.
Moreover, in the case of eToro demand increased by 220% while Raging Bull Trading saw demand surged 158%.
Also, another online trading platform Wealthsimple Trade recorded a 54% surge in new users. Furthermore, total trades jumped 43%.
It is important to keep in mind that, many of those new users are young or even first-time investors. As can be seen from the results. For instance, more than 55% of Wealthsimple’s new clients are aged 34 or below. It makes sense as young people want to make some money and online stock trading platforms represent one of the options when it comes to earning extra cash. However, they should spend more time exploring various stocks before investing their money.