Gen Z Investors Take Center Stage on Binance's TradFi Products
Binance Research has published a new report titled 'Onboarding the Next Generation' which explores how Gen Z investors are becoming the dominant cohort on Binance's TradFi products. The report finds that 30% of Gen Z investors began investing during university or early adulthood, double the rate for Millennials and well above 9% for Gen X.
Gen Z investors also show greater financial discipline, with only 5.9% of their trading volume consisting of leveraged ETFs, the lowest share of any generation. They trade less frequently at 2.6 trades per day compared to other cohorts at 3.0 trades per day.
The report highlights that more than 90% of TradFi users in every generation are based in emerging markets, with Gen Z at 95%. Within this base, 13% of Binance Direct Stocks users are Gen Z investors from emerging markets holding less than US$2,000 in equity assets.
Gen Z's behavior contradicts the assumption of speculative trading, and their contribution to TradFi volume year-to-date is significant, with approximately US$80B generated so far. This trend indicates that Gen Z is onboarding to Binance as the first point of access to global markets without a domestic brokerage relationship.