Democratised investing to on a path to enhance global equities

Fintech innovations democratise global access to U.S. equities, enhancing retail investing participation worldwide.

In Short

Fintech innovations are making U.S. equities more accessible globally, with retail investors now accounting for over 25% of market transactions. DriveWealth enhances this access through features like fractional shares and low-cost investments, making investing simpler for newcomers.

A significant change in investing is emerging, primarily fuelled by fintech innovation and embedded finance, making U.S. equities more accessible globally.

According to John Shammas, Chief Growth Officer at DriveWealth, retail investing in the U.S. market has reached record levels, with retail investors now comprising over 25% of market transactions.

International interest, particularly from investors in countries like Australia, South Korea, and the UK, is increasing as they seek exposure to U.S.-listed companies.

DriveWealth’s approach focuses on integrating the investing experience within existing customer bases, making U.S. market access simpler and more familiar.

Traditionally, investing in U.S. markets from abroad involved high transaction costs, but embedded finance enables lower-cost investments.

One notable development by DriveWealth is the introduction of fractional shares, which allows investors to purchase as little as one dollar of a stock, enhancing access and reducing barriers for new investors.

Additionally, the company has launched Bond Access, aiming to similarly simplify access to the fixed income market.

Shammas emphasises that these innovations are raising expectations for investing experiences globally, making it more approachable for first-time investors.