Today's Novice Traders, Tomorrow's Mainstream Market MacroMonitor Marketing Report Vol. I, No. 6 August 1994

Summary

Who are the future securities traders? What do they need and what will they want from financial providers? A profile of the novice traders—households that purchased or sold securities for the first time within the past two years (data come from the 1992–93 survey)—can provide a glimpse of tomorrow's traders. Composing just 17% of the active trader population, today's novice traders differ from active traders in some interesting ways. Financial marketers need to understand these differences and their financial impact in order to serve tomorrow's securities traders better. By comparing novices with other traders, marketers can also gain additional insights into identifying potential traders and encouraging them to become new traders.