Technology is changing the way Australians invest. Where once most retail investors relied on brokers to guide them into long-term holdings in banks, Telstra, and resource stocks, today a younger generation is entering the market through trading apps – and making instant decisions from their phones.
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It doesn’t mean the fundamentals are gone. Many younger investors still see value in holding Australian names, but sitting alongside those, you’ll now find global tech giants and social apps, EV companies, and clean energy stocks.
It’s a mix that reflects both tradition and disruption, reshaping how capital flows, how risk is managed, and how sentiment develops.
For brokers, this isn’t a threat – it’s an evolution. The market is expanding, not contracting, and the challenge is tailoring services to two very different investor profiles.
Two mindsets, two markets
Stability vs. opportunity
The motivations behind these trades are as divided as the strategies.
Older investors are focused on preserving wealth. They want stability, dependable dividends, and the comfort of blue-chip stocks as they move closer to retirement.
Younger investors are more motivated by opportunity and have time on their side. They’re backing the companies, brands, and technologies they use every day – often with shorter time horizons and a higher tolerance for risk.
The household names divide
For decades, mum-and-dad investors built their wealth around household Australian brands – the big banks, Telstra, and resources. Today’s new guard is still chasing “household names,” but their version looks very different: Apple, Microsoft, Tesla, Nvidia, Amazon, Meta – brands they’ve grown up with and use.
The difference is as much about age as it is about behaviour. Older investors grew up in a market where the choices were fewer; social media and many of these global tech giants didn’t even exist.
For younger investors, tech brands aren’t just companies – they’re cultural narratives. EVs represent a clean-energy future, social media support their social lives, and both double as lifestyle icons as much as shareholdings.
This blending of identity and investment is changing how younger Australians think about risk, growth, and what it means to “own” part of the future.
The numbers behind the shift
The latest ASX Australian Investor Study highlights just how quickly this generational shift is happening: 63% of next-generation investors entered the market in the past two years.
COVID-19 lockdowns accelerated this trend. With more time at home, many investors turned to trading apps. But while COVID added momentum, the rise of apps was already changing the game.
Fractional investing levels the field
Fractional investing has lowered barriers even more. High-value stocks that once felt unattainable are now accessible in bite-sized portions. For younger traders, that means being a part of global megatrends without needing to commit their entire portfolio to one company.
Apps driving instant decisions
According to CommBank, nearly half of all app-based investors in Australia are under 40, and trading apps are the entry point for 1.17 million Australians under 30.
These apps can make trading easy. Investors get instant headlines, price alerts, and analyst takes in real time. It means a corporate earnings call in the United States, or a surprise move by the Fed, can ripple through portfolios here and start shaping sentiment in Australia before lunchtime.
Global markets within reach
Technology unlocking access
Digital access has changed how people trade, and it’s also opened the door to global opportunities.
Advancements in technology mean overseas markets that once felt out of reach for retail investors are suddenly accessible by phone.
Exposure to global tech giants, innovators, and global ETFs is no longer just for institutions – younger investors are putting them alongside Australian blue-chips in their portfolios.
How brokers adapt in a changing market
Working with the old and new model
Trading apps have forced traditional brokers to evolve. What used to mean fees, paper reports and slower trades is faster and more flexible with digital.
For many younger investors, it’s all about speed and choice – and brokers are responding.
The shift in who is investing – and how – is reshaping broker strategies.
Three clear trends are emerging.
- Information on Demand
The 24-hour news cycle means young investors expect real-time trades, instant market updates, and AI insights. Research that once came in lengthy reports is up on the screen, in apps, and at their fingertips.
- Global Market Appetite
Demand for overseas stocks has grown sharply. Younger investors want exposure to the same global tech and innovation stories they follow. For brokers, it means integrating access to international exchanges and multi-time-zone trading as part of their standard offering.
- Shift in Portfolio Mix
The portfolio itself is changing. Stories of innovation, disruption, and sustainability are compelling for younger investors who want to feel they’re part of “the future.” From EV makers to renewable energy and digital platforms, these growth stories now sit alongside traditional ASX blue-chips.
How to play it: Tips for traders, investors and brokers
For next-gen traders
- Global tech names are exciting and delivering, but pairing them with Australian blue-chips can soften the impact of volatility.
- Decide whether you’re trading for short-term gains or long-term growth, and know what outcome you want.
- Don’t rely on apps alone. Supplement your trades with independent research and advice – and whatever you do, avoid jumping in on the hype.
For mum-and-dad investors
- Consider ETFs or fractional holdings in international stocks to complement ASX favourites and spread your risk.
- Even if you prefer working with a broker, apps will keep you engaged, and you’ll feel a part of the market buzz.
- Share your investment approach and experience with family so they understand apps are another tool and not the only way to invest.
For traditional brokers
- Tailor the conversation. Recognise that younger investors want speed and global exposure, while older investors value stability and reassurance.
- Offer flexibility. Access to overseas markets, fractional investing, and lower-cost trades are now table stakes.
- Be tech-smart. Build AI and faster tools into your service because they’re what prove your value to younger investors.
Opportunity or risk?
With a new mix of traditional investors and app-driven traders, the big question is whether this shift in profile makes the market stronger or more unstable.
Supporters argue next-gen investors have democratised access, brought liquidity, and pushed brokers to modernise. Critics warn that hype-driven trading risks inflating bubbles and leaving inexperienced investors vulnerable.
The reality is probably somewhere in between. What’s certain is the old model has been broken. The next generation isn’t waiting for brokers to guide them – they’re setting the pace, and the rest of the market is adapting.
The big question
So, where does this leave investors? Are we heading toward a more open and dynamic market that benefits everyone, or a hype-driven cycle that could catch many off guard?
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