Over the past five years, retail investors have solidified their presence in financial markets, driven by catalysts like the GameStop short squeeze in 2021 and the expanding crypto ecosystem. This movement, led by trader Keith Gill, pushed GME to record highs and established retail traders as a permanent market force. According to Bloomberg data, retail now accounts for 20.9% of US equity trading volume, up from 18.5% the previous year, while institutions hold 30.2%, with the gap narrowing rapidly.
Retail investors are adopting more sophisticated strategies, shifting towards derivatives and options trading. In the last quarter, individual investors made up 29.3% of options volume and over 50% of S&P500 options volume in 2025, setting new records. The popularity of zero-day options (0DTE), a risky short-term prediction tool, has been highlighted by CBOE. This trend is partly influenced by experiences in the crypto space, where 24/7 trading has reshaped expectations, leading to 9% of stock trades occurring outside official hours, compared to just 1% in 2019.
Steven Quirk, chief brokerage officer of Robinhood Markets Inc., emphasized, "Retail is a force in this space. I don’t see that changing." J.P. Morgan Chase reports post-pandemic behavior changes, with retail activity surging back to levels not seen since 2025. Additionally, retail investors are venturing into high-profile IPOs, causing dramatic spikes for companies like Figma Inc. and Circle Internet Group Inc., attracted by their value and meme potential.
