Will young investors rule the world? If so, we’ve identified a way to profit no matter your age.
I find that sometimes, the stories that hold the most valuable nuggets of investing wisdom aren’t the ones everyone is covering.
For instance, this headline crossed my feed:
- “HSBC takes on fintechs with UK investing feature aimed at younger clients.”
It got me thinking about the future of financial markets.
What’s Going On
This month, British bank HSBC Holdings (NYSE: HSBC) announced a new service aimed at younger customers who are interested in investing.
This simple tool within its mobile app will grant access to a bucket of ready-made funds that HSBC customers can invest in from their bank accounts.
This news won’t blow anyone’s socks off. But it speaks to a game-changer in finance.
Now, with apps like Robinhood and Coinbase, anyone can invest without all the hoops we used to have to jump through.
In just a few taps on your smartphone, you can own shares of Tesla, Amazon or a wide range of other assets in seconds.
We’ve talked about Robinhood and the wave of new traders in meme stocks here in Money & Markets.
Some of the investors coming into the market through free apps and commission-free trading will want more…
Investors Will Move on From Robinhood and HSBC
I love what HSBC is doing here. Its clients will soon have an easy way to invest.
On a larger scale, Robinhood’s ease of use helped grow its customer base to more than 22 million in the U.S. this year! Ten million of those accounts were created in the first half of 2021 alone.
But Robinhood isn’t perfect. Remember the GameStop (NYSE: GME) debacle? Earlier this year, Robinhood blocked its users from trading GME during a massive rally and short squeeze.
As Robinhood’s investors learn more about the markets and grow their accounts, many will need more.
Millions of beginners will gain experience and see the value in features they can’t get with Robinhood: more complex stock charts, research, and access to over-the-counter stocks, mutual funds, bonds or futures, for example.
Or maybe they want to avoid the way Robinhood handles trades, where its business model relies on routing customer orders through other trading firms instead of through a stock exchange. Robinhood claims its trades are competitive, but its business model is even illegal in the U.K.
Whatever the reason, investors who started on Robinhood will move on.
A Better Brokerage Stock to Buy
Chief investment strategist Adam O’Dell is targeting this transition with his No. 1 brokerage stock.
Since he recommended this stock in a special report to his Green Zone Fortunes subscribers in July, it’s gained almost 20%.
And this company isn’t slouching on growth, either!
From 2015 to 2020, when folks were just starting to hear about Robinhood, Adam’s top brokerage stock achieved annual growth rates of 27% on new accounts, 23% on the number of trades processed per day, and 34% on client equity (i.e., the amount of money clients hold at the firm).
Add to that a new wave of investors wanting more out of their brokerage, and this stock’s future looks bright.
To find out about how Adam finds companies like his No. 1 brokerage stock, click here to watch his Millionaire Market Summit now. You’ll find out how you can gain access to a special report on this “market breaker” stock today.
On top of that, you’ll receive Adam’s highest-conviction stock research and recommendations every month, weekly updates on the model portfolio and guidance on the best times to buy and sell.
Managing Editor, Money & Markets