A Fidelity Investments location in New York.
Scott Mlyn | CNBC
Retail investors aren’t just flocking to Robinhood. Fidelity won millions of new customers, including millennials, in the first three months of the year.
Fidelity Investments added 4.1 million new accounts in the first quarter of 2021, an increase of nearly 160% from the first quarter of 2020.
The company has also attracted members of a new generation of retail investors. Of the new customers, 1.6 million were opened by private investors aged 35 and younger, which corresponds to an increase of more than 222% compared to the previous year.
The daily average trades were 3.5 million, an increase of nearly 60% over the previous year.
“Strong markets mixed with high levels of customer loyalty resulted in record growth, trade and call volume across all major lines of business,” said a statement from Fidelity.
In January, GameStop’s big brokers were embroiled in an epic short squeeze, fueled in part by Reddit-fueled retail investors. The commercial frenzy brought millions of new private investors onto the market on platforms such as Fidelity, Schwab, Robinhood and Interactive Brokers.
Fidelity now manages a total of 83.4 million accounts and $ 10.4 trillion in assets.
Online broker Charles Schwab posted a record 3.2 million new customers in the first quarter of 2021. New customers were added compared to approximately 2.4 million new customers in all of 2020.
Robinhood is a privately owned company and therefore does not publish data about new customers. However, JMP Securities estimates that Robinhood added nearly 6 million customers in the first two months of 2021.
Robinhood is expected to go public in the first half of this year.
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