Millennials are set to dominate CommSec by force of numbers, representing half of all new customers signing on to the share trading platform, according to data released by CBA.
More than half of all new customers to CommSec are under 35, many of whom seek investment alternatives to an increasingly unaffordable local property market.
“Younger investors have embraced online share investing as a means to take control of their finances and save for their financial goals, said CommSec Managing Director, Paul Rayson.
Over the past five years, the number of millennial investors has increased by 51 per cent on the platform, representing nearly a third of all active CommSec customer accounts – or approximately 70,000 trades per month.
The mobile-enabled investment platform has also proved a popular drawcard for younger cohorts.
“This new wave of share investors are also big users of mobile and represent up to 50 per cent of all mobile trades made through the CommSec mobile app,” according to a CBA release.
“Technology has made it easier for us to support new investors with online tools such as CommSec Learn, a series of online tutorials that teach the basics of selecting and managing investments, and portfolio checks to better educate on share quality and diversification,” Rayson said.
Despite the surge of Millennials joining the platform, it appears their risk appetite is not nearly as voracious as their older cohorts’.
“Many younger investors are investing in blue chip stocks (well-known stocks) that pay dividends with more stable share prices,” the release said.
Millennials are also investing in index-based exchange traded funds (ETFs), which increase asset diversification and thus lower-risk, accounting for a quarter of all ETF trades made through CommSec.
CommSec remains one of the dominant players in online brokerage, capturing nearly half of Australia’s total online market, according to a report by The Australian last year. ANZ Etrade, the next largest service provider, has 25 per cent market share.