Investor Study: Stocks and ETFs – how young investors invest their money

Frankfurt Neobrokers offer investors simple and inexpensive access to securities trading. But they are also accused of luring young first-time investors to the stock market and tempting them to gamble. There is often a prejudice that neobrokers’ intuitive smartphone apps are more reminiscent of a computer game than an investment platform.

The Berlin fintech Trade Republic defends itself against this criticism – and cites a new study that the DIW Econ carried out on behalf of the company. To this end, the institute surveyed over 200,000 Trade Republic users last summer and analyzed their usage behavior.

The result: Neobroker’s customers invest a little more than 85 percent of their assets in stocks and exchange-traded funds (ETFs). Equities account for around 60 percent and ETFs around 26 percent. Derivatives, which are significantly riskier due to leverage, account for just 2% of portfolios.