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Stock Trading Statistics Canada

Canada ranks 6th for stock trading and interest is rising.

As global stock markets dealt with the fallout from COVID-19 in 2020, there was an influx of new retail investors, as young people entered the market for the first time and, in some countries, government stimulus meant people had extra cash to spend or invest.

But how many people actually put money on the stock market? And are more people expected to invest in the year ahead? Finder surveyed 23,659 people in 16 countries to find out.

A closer look at Canada

As it stands, Canada ranks 6th out of 16 countries for share trading with 39% saying they currently own stocks. Of those, 34% (33.56%) bought shares in just the last 12 months and 6% (5.75%) say they already held stock but haven’t invested recently.

By the end of the year, it’s expected that a further 20% will purchase shares, according to Finder’s Global Investing Adoption Survey.

Overall, Canadians are most likely to invest less than $2,000, with 17% of Canadians investing this much. Meanwhile, 6% of Canadians say they’ve invested $2,000-$8,000, 3% have invested $8,001-$15,000, and 7% have invested more than $15,000.

Men are more likely to be investing than women

Around 47% of men currently own shares compared to 31% of women. By the end of the year, we’ll see an additional 21% of men and 18% of women buy shares.

Interestingly, men are much more likely than women to have invested more than $15,000, with 10% of men saying they did so compared to just 4% of women.

45-54 year olds lead the pack for investing

People aged 45-54 are most likely to own shares, with 47% currently holding investments and an additional 15% expected to purchase shares by the end of the year.

People in this age group are also the most likely to have invested more than $15,000, with 14% of people in this age group investing this amount, compared to between 4% and 8% of all other age groups.

How does Canada compare to other countries?

At the time of the study, an average of 34% of those surveyed said they currently owned shares. Hong Kong investors led the way, with approximately 57% of adults owning shares. An additional 20% of Hong Kong adults are expected to buy shares by the end of 2021.

Singapore is not too far behind Hong Kong, with 53% reporting that they own shares and an additional 18% expected to buy shares by the end of the year. Rounding out the top 3 is the US, where 47% say they currently have investments in the stock market and an additional 15% say they will invest by the end of the year.

At the other end of the investing spectrum is Mexico, where just 13% say they currently have investments. However, by the end of the year an additional 27% of Mexicans expect to invest.

It’s a similar story with Spain, with only 18% saying they have currently invested. When asked about their plans for investments by the end of 2021, an additional 17% reported that they will own shares.

The popularity of stock trading around the globe took a major jump in 2020, and Canada was not immune, with COVID-19 causing all kinds of upsets in the market and with people having to stay home with little to do, many turned to stock trading apps rather than traditional advisors. In fact, more than three million Canadians said they plan to stop using a financial advisor in 2021 and manage their own money, according to a survey conducted by Finder earlier this year.

Interest in stock trading in Canada is on the rise

The number of Canadians getting into stock trading saw a major jump over the last year driving in part by the pandemic. Looking at search history over the last five years using Google trends, we see a spike in 2020-2021 of 105.03% when compare to the years prior (2016-2019).

12.3 million Canadians investing in stocks using apps

Around two-fifths (39.72%), or approximately 12.3 million Canadian adults, say that they use a stock trading app according to a survey conducted by Finder.

The number one app of choice for Canadians wanting to invest is TD Direct Investing, with 12.07% saying they use the app. The next most commonly used stock trading app is RBC Direct Investing, with 8.66% using the service. Wealthsimple Trade rounds out the top three, with 8.57% investing through the app.

The investing gender gap

Just shy of half (49.38%) of the men surveyed say they use an investing app, compared to less than a third (29.68%) of women.

TD Direct Investing is the top choice for both genders looking to invest using an app, with 13.85% of men and 10.60% of women saying they use the service. For men, Wealthsimple Trade comes in as the second most popular choice at 11.90%, whereas RBC Direct Investing is the second most popular choice for women (6.54%). RBC Direct Investing is the third most common choice for male investors (10.66%), whereas Scotia iTRADE rounds out the top three for women (5.65%).

Millennials are the biggest app investors

Younger Canadians are by far the most likely to invest using an app. In fact, over half (53.44%) of millennials invest using a mobile service, with Zoomers not too far behind at 42.48%. Gen X comes in as the next most likely app investors at 32.68%, followed by boomers at 21.93%.

Once again, TD Direct Investing is the most popular choice for investing using an app, with 16.86% of millennials, 12.39% of zoomers, 9.09% gen X and 8.02% of boomers using the service.

The next two most popular services for millennials are Wealthsimple Trade (15.68%) and RBC Direct Investing (10.45%). For zoomers, RBC Direct Investing comes in as the second most popular service (11.50%) followed by BMO InvestorLine (8.85%). Scotia iTRADE is the second most popular service with gen X (6.63%), with BMO InvestorLine in third (5.65%). RBC Direct Investing and BMO InvestorLine are tied as the second most common app for boomers (3.74%).

It’s not all that surprising that younger Canadians are the top app investors. Finder’s Financial Advisors Report found that 33.7% of millennials and 30.97% said they plan to stop or are seriously considering ditching their financial advisor in 2021.

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