The Online Retail Brokerage Boom in Emerging Markets

The Online Retail Brokerage Boom in Emerging Markets

As retail brokerage growth continues to garner attention in the US, we see a significantly greater opportunity to leverage this theme across emerging markets (EM). The surge of retail investors in EM and the accelerating demand for online services due to the Covid-19 pandemic have created a new driver for growth. 

Investment Considerations — There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including the potential of loss of principal.

Emerging Markets Risk — The risks of foreign investments are typically greater in less developed countries, which are sometimes referred to as emerging markets. For example, political, legal and economic structures in these country may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of inflation, deflation or currency devaluation, which could hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative. Similarly, investors are also subject to foreign securities risks including, but not limited to, the fact that foreign investments may be subject to different and in some circumstances less stringent regulatory and disclosure standards than U.S. investments.