Gen Z Investors Take Lead in Traditional Financial Products on Binance

Binance Research has released a report highlighting the growing trend of Gen Z investors taking to traditional financial products, particularly those offered by Binance.

The study found that 30% of Gen Z investors began investing during university or early adulthood, more than double the rate for Millennials and nearly four times that of Gen X. This earlier entry is paired with stronger preparation, as 77% of Gen Z investors report having received formal financial education, the highest among all generations.

The research also shows that Gen Z accounts for 44% of Direct Stocks and bStocks users and roughly 45% of TradFi-Perps users on Binance. Among users who have adopted all three products, a staggering 48% are Gen Z. Furthermore, the share of newly onboarded TradFi users from Gen Z has increased steadily from 41% in January to 47% in July.

The report also notes that more than 90% of TradFi users across all generations are based in emerging markets, with Gen Z making up a significant 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. This segment is identified as 'Next Gen Users', and for many, Binance serves as their first access to US equities.

The study's findings suggest that Gen Z's behavior contradicts the assumption of speculative trading. Leveraged ETFs account for just 5.9% of Gen Z trading volume, the lowest share among all generations. Additionally, Gen Z trades less frequently at 2.6 times compared to other cohorts at 3.0 times per day.

The report concludes that across every metric examined, Gen Z and users based in emerging markets are onboarding to Binance as their first point of access to global markets without a domestic brokerage relationship. This is seen as a strong indicator of where the user base is heading.