French Trading Scene Faces 17% Dip, Contracts to Pre-Covid Era

<p>The French
online investment landscape has experienced a significant contraction,
shrinking 17% over the past year, as revealed in the latest report by Investment
Trends. This decline, marking a return to pre-pandemic activity levels, is
attributed to a decrease in new and reactivated retail traders alongside
increased dormancy rates.</p><p>The Changing Face of
Online Investing in France</p><p><a href="https://www.financemagnates.com/tag/investment-trends/" target="_blank" rel="follow">Investment
Trends</a>' “2023 France Online Investing Report”, now in its 12th edition, offers
a comprehensive analysis of the nation's retail online investors. It indicates
a notable shift in the demographic and behavior of French online investors, who
are now younger and more inclined to trade via smartphones.</p><p>The numbers
presented in the report are clear: the base of active investors in France has
shrunk over the last 12 months from 430,000 reported a year earlier to 360,000.
The downward trend has been <a href="https://www.financemagnates.com/forex/analysis/forex-in-france-a-large-country-but-a-small-number-of-traders/" target="_blank" rel="follow">observed since 2022</a>, during which only the United
Arab Emirates <a href="https://www.financemagnates.com/forex/uaes-fx-and-cfds-trader-population-reaches-record-49000-in-2023/" target="_blank" rel="follow">reported an upward dynamic of active traders</a>.</p><p>Encouraging
women to invest <a href="https://www.financemagnates.com/forex/growing-number-of-french-women-wants-to-trade-amf-study-shows/" target="_blank" rel="follow">could be a solution to the problem</a> of the declining number of
traders. A report prepared in March by the financial commission Autorité des Marchés Financiers (AMF) showed that
an increasing number of French women would like to trade. However, often, the
fear of discrimination and promotional materials typically aimed at men
<a href="https://www.financemagnates.com/forex/macho-marketing-is-a-huge-turnoff-for-women-in-financial-markets/" target="_blank" rel="follow">discourage them</a> from taking the first step.</p><p>Traders Want Lower
Commissions</p><p>The report
also sheds light on the evolving preferences of investors, with a significant
number (41%) prioritizing lower commissions and access to specific markets (33%).
Here again, it is worth referring to the latest AMF report, which showed that
retail investors additionally want <a href="https://www.financemagnates.com/forex/retail-traders-struggle-with-trading-fees-regulator-aims-for-simplification/" target="_blank" rel="follow">an improvement in the transparency of fee
structures</a> of investment firms, as these are often unclear.</p><p>Interestingly,
13% of investors are now enticed by higher interest rates on savings, a
substantial increase from the previous year. </p><p>Moreover,
the industry has seen a rise in client satisfaction, with 80% of online
investors expressing approval of their main brokers.</p><p>“It’s
noteworthy to mention the uplift in the overall satisfaction is consistent with
better ratings in a range of areas,” Lorenzo Vignati, the Associate Research
Director at Investment Trends, commented. “This underscores the need for
platforms to prioritize what consumers value most, and the method in which they
deliver it.”</p><p>ETFs and Mobile Trading on the Rise</p><p>Vignati
also highlighted the doubled usage of ETFs by today's investors compared to 2018
and the shift towards mobile trading. The research underscored the critical
role of broker offerings in attracting cost-conscious investors. A noteworthy
14% of online investors acknowledged recent useful innovations by their
brokers, correlating with increased satisfaction rates across various service
aspects, including fees and mobile app functionality.</p><p>“Our
research revealed that today’s online investors are now twice as likely to use
ETFs, then back in 2018 (55% in 2023, up from 23% in 2018),” Vignati added. “And
on that, the typical profile of online investors has also changed – where they
are now a little younger and more likely to place trades with a smartphone.”</p><p>The report
further delved into the investment habits of younger generations, revealing a
growing reliance on social media for investment insights. YouTube and X
(formerly Twitter) are the leading platforms for investment-related content. This
is confirmed by data from an earlier Investment Trends report <a href="https://www.financemagnates.com/forex/why-us-online-investors-are-trading-less-but-earning-more/" target="_blank" rel="follow">on the
American market</a>, where similar conclusions were drawn.</p><p>This trend
presents an opportunity for investment platforms to engage with the next wave
of investors, who are typically younger with smaller portfolios, and to foster
a more inclusive investment environment.</p><p>The twelfth
“France Online Investing Report” was based on a survey of 9,342 online investors
and provided insight into the wealth management and online investing industry.
</p>

This article was written by Damian Chmiel at www.financemagnates.com.