A new article in Barrons discusses the best online brokers of 2023 and quotes Corporate Insight analyst Ian Bonhotal:
Two years ago, younger investors flocked to Robinhood and other financial technology apps, wooed by the gamification of trading and mesmerized by social-media led crazes such as meme stocks. That now seems a distant memory. “I don’t know if [meme stocks] have completely fizzled out,” says Ian Bonhotal, a brokerage research manager at Corporate Insight, a financial-services research and consulting firm. “But it’s certainly a shadow of itself.”
. . . The retreat of once gung-ho, game-centric young players hasn’t resulted in brokerages turning their backs on millennials and Gen-Zers. Far from it. They’re playing the long game. “Firms over the past year or so have been doing a lot to try to capture these younger investors,” says Bonhotal. “They don’t have a lot of money now. They’re early in their careers. But if [brokerages] can create this safe, easy-to-use, highly educational place for them to start their investor journeys, then they can foster loyalty.’”
Read the full Barrons article here (subscription required).
