– Gen Z (aged between 18 to 24 years old) investors make up 15% of Tiger Brokers global users, and 30% of Singapore’s total users
– Tiger Brokers Singapore to introduce US fractional shares to increase accessibility to global stocks in the near future
– Tiger Brokers Singapore will also be joining the Singapore Exchange (SGX) annual Bull Charge and donate to five selected local subsidiaries in Singapore
Xiaomi-backed global brokerage firm Tiger Brokers shared insights around the investment behaviour of Generation Z investors (aged between 18 to 24 years old), analysing about 100,000 Generation Z investors who are trading on Tiger Brokers’ platform during the span of 2015 to 2020. Gen Z makes up 15% of the company’s current 900,000+ customers worldwide; and 30% of Singapore’s total customers since the launch of Tiger Trade app in February 2020. The findings for the Singapore sample are in line with the overall findings.
The analysis showed that 45% of Gen Z investors prefers long-term stocks like Apple, Boeing, and Carnival, 35% real estate investment trusts (REITs) and exchange traded funds (ETFs) across United States, Hong Kong and Singapore; 10% are investing in high volatility stocks, such as Afterpay, Kodak, and Vaccinex and 10% in options, based on reports and business forecasts. For Q3 2020, the most traded stocks by Gen Z in Singapore are Tesla, Apple, NIO and MedTech International.
Wu Tianhua, Group CEO of Tiger Brokers, said, “Gen Z investors tend to gear towards creating a globally diverse investment portfolio. Since 2015, we have seen a year-on-year increase of Generation Z investing on the Tiger Trade platform. We will continue to strengthen our technology capabilities to provide the necessary tools to help bolster our investors’ trust in the platform.”
Tiger Trade’s figures show Gen Z investors have a 80:20 split between traditional stocks and real estate versus volatile stocks and options. The average fund deposited in a Gen Z Tiger Brokers trading account was US$3,435, over the last five years.
Fractional Shares for better accessibility to global stocks
Tiger Brokers is currently seeing increasing interest around US fractional shares from its users, which is a relatively popular financial product in the US. The fintech company sees fractional shares as part of its larger efforts to bring a more diverse array of trading options to its investors, especially Generation Z or new investors who would like to start with lower capital. Investors can determine the value that they would like to trade, and Tiger Brokers will help with the purchase. Investors may access US fractional shares via the Tiger Trade platform in the near future.
Tiger Brokers had recently added ASX (Australian Securities Exchange) in September and Singapore Exchange (SGX) in June, addressing Singapore-based investors’ increasing appetite towards investing even during the current COVID-19 pandemic: Tiger Brokers had witnessed a surge in account openings at 126% in 3Q2020 as compared to 2Q2020, with investors committing smaller premiums at the beginning of their investment journey.
Eng Thiam Choon, CEO of Tiger Brokers Singapore highlights, “Less is more – At Tiger Brokers, we noticed a demand for investors for smaller investment amounts. With our current US market’s median trade size at US$1,200 indicative, some of the US blue chips could be a hefty start, especially for those who are new to trading. For example, one can now purchase part of an Amazon stock for a fraction of the market price which is usually in the range of US$3,160, US$3,400 depending on the market situation. We believe fractional shares investment allows individuals, especially for those who are more conservative with their purchase to have a chance to invest prudently as well as diversifying their investment portfolio.”
A business with social impact at heart
Tiger Brokers Singapore will also be sponsoring the Annual Singapore Exchange Bull Charge run as a Bronze sponsor, alongside DBS Bank, PhillipCapital, Frasers Property, F&N Limited and more. The team hopes to help raise funds for five different beneficiaries (Autism Association (Singapore), AWWA Ltd, Fei Yue Community Services, HCSA Community Services and Shared Services for Charities), providing them with care and assistance that help them lead more positive, meaningful and comfortable lives. The run will be conducted virtually, where participants could start their virtual run anywhere between 30 October, 6pm to 13 November, 8pm.
“Tiger Brokers believes in giving back to the community. It is in our culture, values and way of doing business to do what’s right for the community. We give serious consideration to the impact our business activities may have, not only on our partners and investors, but also the local communities. We know that many people or communities have been impacted by the pandemic and we encourage others to join us in the participation of different charitable activities of their choice. As a fintech company, we hope to raise awareness, especially this year where many will need the additional support to sail through,” added Thiam Choon.
About Tiger Brokers (Singapore) Pte Ltd.
Tiger Brokers Singapore Pte Ltd (Tiger Brokers Singapore) is a brokerage firm operating with a Capital Markets Services (CMS) Licence from the Monetary Authority of Singapore (MAS). Its trading platform, Tiger Trade, offers complimentary real-time stock quotes, dedicated multilingual customer service during trading hours and 24/7 finance news updates. The company launched the mobile version of Tiger Trade in February 2020 – accessible on Google Play Store and the Apple App Store – offering mobile-savvy generation of retail investors similar trading opportunities as their online users, such as Equities, Exchange-Traded Funds (ETFs), Futures, Stock Options, Warrants, and Callable Bull/Bear Contract (CBBC) on their mobile phones. Both online and mobile app allow users to invest across multiple asset classes traded on the Singapore, U.S., Hong Kong and Australia stock markets such as the New York Stock Exchange (NYSE), NASDAQ, Shanghai/Shenzhen-Hong Kong Stock Connect, the Hong Kong Stock Exchange (HKEX), the Singapore Stock Exchange (SGX) and Australian Securities Exchange (ASX).
Tiger Brokers Singapore is the Singapore entity of UP Fintech Holding Limited, known as “Tiger Brokers” in Asia, a leading online brokerage firm focusing on global investors. Founded in 2014, Tiger Brokers became #1 in the U.S. equity trading by volume among trading platforms catered to Global Chinese investors in less than two years. Tiger Brokers was awarded “2017 Fintech 250” by CB Insights and shortlisted for “China Leading Fintech 50” for two years in a row by KPMG China. The company was listed on NASDAQ under “TIGR” in 2019 and has offices in China, United States, Australia, New Zealand and Singapore. Tiger Brokers has over 833,900 customers worldwide currently, with a total trading volume of US$46.8 billion in Q2 2020. The company is backed by well-known investors such as Xiaomi, as well as investment guru Jim Rogers. For more information, please visit https://www.tigerbrokers.com.sg.
This article has not been reviewed by the Monetary Authority of Singapore.
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