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What are the investing trends of Gen-Z?

In the third quarter of this year, the most traded stocks by Gen Z in Singapore are Tesla, Apple, NIO and MedTech International

Tiger Brokers has uncovered that most Generation Z (Gen Z) investors, those aged between 18 and 24 years old, have been active investors in technology stocks in the last five years

The Xiaomi-backed global brokerage firm analysed the shareholdings of about 100,000 Gen Z investors between 2015 and 2020 and discovered that 45 per cent of Gen Z investors prefer shares such as Apple, Boeing and Carnival as long-term holdings. These investors are from different parts of the world. 

Notably, in the third quarter of this year, the most traded stocks by Gen Z investors in Singapore are Tesla, Apple, NIO and MedTech International. With their penchant for technology shares, Gen Z investors’ portfolios have generally performed well.

Gen Zs make up about 15 per cent of Tiger Broker’s current one million customers worldwide and 30 per cent of its users in Singapore. The Tiger Trade app was launched in Singapore in February this year. 

Real Estate, ETF Investing

The analysis also showed that 35 per cent of Gen Zs globally are investing in real estate investment trusts (REITs) and exchange-traded funds (ETFs) across the United States, Hong Kong, and Singapore. Meanwhile, 10 per cent prefer high-volatility stocks such as Afterpay, Kodak, and Vaccinex and the remaining 10 per cent are invested in options. Between 2015 and 2020, the average amount of funds deposited in their trading account was US$3,435.

The Tiger Trade’s figures also showed Gen Z investors are about 80 per cent invested in traditional stocks and real estate and 20 per cent in stocks and options.

“Gen Z investors tend to lean towards creating a globally diversified investment portfolio,” says Mr Wu Tianhua, group CEO of Tiger Brokers.

“Since 2015, we have seen a year-on-year increase of Gen Zs investing on the Tiger Trade platforms worldwide,” says Mr Eng Thiam Choon, CEO of Tiger Brokers Singapore. Mr Eng attributes the surge in new users to the “circuit breaker” lockdown and subsequent working from home measures, which drove new and existing investors to seek out online brokerages.

Tiger Brokers has also observed an increase in trading activity during the pandemic. The brokerage has three times more account openings in the third quarter of 2020 as compared to the second quarter of the year, with investors committing smaller premiums at the beginning of their investment journey. More than 80 per cent of the new users are under 45 years old.

Having a competitive edge

Three things that differentiate Tiger Brokers from other trading platforms in the market:

1. Fast and seamless client onboarding process. Account opening can take place as  quickly as within one working day from completion and submission of application forms.

2. A robust interface on the Tiger Trade platform. Features that provide investors with an unparalleled experience include:

  • Complimentary real-time stock quotes that is also free for foreign markets
  • Dedicated multilingual customer service staff available during trading hours
  • 24/7 finance news updates from the app
  • Artificial intelligence (AI)-driven data screeners, and trading charts that are easy to analyse

3. Competitive rates. Tiger Brokers offers one of the lowest transactional brokerage rates in the market. This lowers the barriers to entry to help investors better diversify their portfolio, balancing their investments’ risks and rewards.

The global health crisis drove a surge of trading activity in Tiger Brokers' platforms, as the restrictions on movement and travel pushed traders to seek out reliable online brokers. Photo: Tiger Brokers

The brokerage added Singapore Exchange (SGX) in June and Australian Securities Exchange (ASX) in September to offer diverse trading options, amid Singaporean investors’ increasing appetite for investing during the pandemic. Tiger Brokers offers both single account and multi-currency facilities, and investors can trade in multiple global markets, including Singapore, the United States, China and Hong Kong. Trading fees are competitive, starting from as low as US$0.01 per share, along with free promotional quotes. The instruments available on its platform include equities, ETFs, futures, stock options, warrants, and Callable Bull/Bear Contract (CBBC).

Tiger Brokers Singapore is a brokerage firm operating with a Capital Markets Services (CMS) Licence from the Monetary Authority of Singapore (MAS). Tiger Trade, its online trading platform is packed with tools, educational materials, real-time market data, 24/7 finance news updates, and dedicated multilingual customer service.

Tiger Brokers Singapore is proud to be a Silver Sponsor at this year’s Singapore FinTech Festival, which takes place from Dec 7 to 11. To inject some fun into trading, the brokerage firm recently launched a programme where traders can harness the power of network connections to purchase shares for just $1. The more teammates you have, the faster you can achieve your targets. For more information, please visit Tiger Brokers Singapore’s official website

Disclaimer:
This article has not been reviewed by the Monetary Authority of Singapore.

Any views shared with Prospective Clients (“Prospects”) are suggestive in nature and on a sample basis only. This may also be predicated on assumptions that are made by Tiger Brokers (Singapore) Pte Ltd about the Prospects’ investment objectives and risk profile. Our suggestive and sample views extended to Prospects are not to be considered as recommendations made by the Company. Suggestions provided are also based on information that may be shared by the Prospects, the accuracy and comprehensiveness of which Tiger Brokers is not in a position to verify.

Tiger Brokers (Singapore) Pte Ltd (herein "Tiger Brokers") may, to the extent permitted by law, participate or invest in other transactions with the issuer of the products referred to herein, perform services or solicit business from such issuers, and/or have a position or effect transactions in the securities or options thereof. The information herein is for recipient’s information only and not an offer to sell or a solicitation to buy. Any date or price information is indicative only and may be changed without prior notice. All opinions expressed and facts referred to herein are subject to change without notice. The information herein was obtained and derived from sources that we believe are reliable, but while reasonable care has been taken to ensure that stated facts are accurate and opinions are fair and reasonable, Tiger Brokers does not represent that it is accurate or complete and it should not be relied upon as such. The information expressed herein is current and does not constitute an offer, recommendation or solicitation, nor does it constitute any prediction of likely future stock performance. Investment involves risk. The price of investment instruments can and do fluctuate, and any individual instrument may experience upward or downward movements, and under certain circumstances may even become valueless. Past performance is not a guarantee of future results. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any person or affiliated companies. Before making an investment decision, you should speak to a financial adviser to consider whether this information is appropriate to your needs, objectives and circumstances. Tiger Brokers assumes no fiduciary responsibility or liability for any consequences financial or otherwise arising from trading in securities if opinions and information in this document may be relied upon.

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