New platform targets surge in self-directed trading
Fidelity Investments is introducing a significant upgrade to its trading infrastructure with the rollout of its new Trader+ platform, designed to serve the growing number of self-directed individual investors. This platform, set to launch on Thursday, includes real-time analytics, customizable charts, and a range of tools tailored to meet the demands of Fidelity’s most engaged and active clients.
According to Josh Krugman, senior vice president of brokerage at Fidelity, these traders frequently deal in individual stocks and ETFs and seek tools that offer real-time insights and customization. The upgrade reflects Fidelity’s commitment to providing advanced functionalities to clients who are shaping market activity more than ever.
Brokerage industry races to serve retail traders
Fidelity’s initiative is part of a broader trend among financial firms aiming to capture a larger share of the retail investor market, a demographic that has played a pivotal role in market dynamics since the pandemic. Robinhood, for example, recently launched Robinhood Social, a feature built into its trading app that enables users to exchange strategies and insights, positioning the platform as a “financial super-app.”
Similarly, Moomoo Financial is gaining traction among retail traders by offering access to high-demand IPOs, including recent listings like Gemini Space Station and Bullish. Many brokerages have also embraced 24-hour trading and extended access to high-profile stock launches to better serve this highly engaged audience.
Retail investors now drive significant market volume
Retail investors now account for roughly 8% of total daily stock trading by dollar volume, according to Vanda Research. That figure doubles for trending stocks like Tesla and Nvidia, underscoring the growing influence of individual traders. This is a dramatic shift from pre-pandemic behavior, where most individual investors followed a passive, long-term strategy.
Citadel Securities estimates retail participation to be closer to 20%, particularly for buzzy IPOs. Their activity has proven crucial during volatile periods, including recent market selloffs, where retail investors played a stabilizing role by buying into the dip and focusing on high-beta stocks.
New products and lower entry points for individuals
To match rising expectations, Fidelity is introducing features traditionally reserved for high-net-worth individuals. These include fractional CDs and a new offering that mirrors separately managed accounts (SMAs), with a minimum investment of just $5,000 — a significant drop from the previous $100,000 threshold.
With tools like Trader+, Fidelity aims to meet the evolving needs of modern retail investors, who are no longer passive participants but key players influencing broader market trends.
