Retail investors in the stock market grow to top 3 million

In 2019 Q3, the number of retail investors in the stock market was up 18.2%, or 523 thousand customers, to exceed 3 million people. These movements are confirmed by the Bank of Russia’s statistical data on operations of certain types of professional participants of the securities market in 2019 Q3.

 Key drivers behind the significant inflow of private investors include lowering interest rates on bank deposits and the emergence of new financial products with higher yields compared to deposits. Also, investors grew increasingly interested thanks to state stimulus measures including tax breaks for individual investment accounts, measures to improve financial inclusion and financial literacy.

 The total market value of securities on custody accounts rose in 2019 Q3 by 0.9 trillion rubles (1.4%). The bulk of securities handled by depositories are debt instruments. They account for 54% of the total value of securities on record.

The report further notes that the trend towards reduction in the number of professional market participants continued into Q3 with small companies leading among those exiting the market. Growing customer bases concurrent with fewer participants suggest tighter competition – mainly driven by major market payers pursuing aggressive customer attraction strategies.