How has retail investor participation changed in US equities?

Retail participation in US equities has risen to nearly 20% of daily trading volume, a significant increase from pre-pandemic levels.

What factors contributed to the rise of retail investors?

Factors such as government stimulus, zero-commission trading, and social media coordination have significantly increased retail investor participation.

What is the projected impact of generational wealth transfer on retail investors?

Millennials and Gen Z are expected to inherit approximately $120 trillion over the next 20 years, which will likely further amplify retail investor influence.

Home / Business and Economy / Retail Investors Reshape Wall Street

Retail Investors Reshape Wall Street

27 Jan

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Summary

Retail participation now nears 20% of US equity trading volume.
Inflows jumped nearly 60% from the prior year in 2025.
Millennials and Gen Z to inherit $120 trillion over 20 years.

Retail investors have evolved into a significant and lasting force in equity markets, demonstrating a durable influence five years after the meme stock phenomenon. Their participation in U.S. equities has risen to nearly 20% of daily trading volume, a substantial increase from pre-pandemic levels.

This surge was fueled by factors including government stimulus, the advent of zero-commission trading, and social media coordination. These elements pulled millions of new investors into markets, with participation on high-volume days reaching as high as 40% in equities.

Retail flows saw a significant boost in 2025, jumping nearly 60% from the previous year and surpassing the peak set in 2021. This trend is poised for further expansion as Millennials and Gen Z are projected to inherit approximately $120 trillion over the next 20 years, a wealth transfer that could dramatically increase retail investor capital.