Two in five millennials now investing in property and shares to grow their wealth: CommBank

woman-sitting-on-steps-share-trading-on-phone

New research from the Commonwealth Bank has challenged one of the major misconceptions surrounding millennials: that they are a generation of spenders.

A study of 1,002 Australians commissioned by the bank and conducted by YouGov Galaxy in April found that 43% of millennials are actively investing their money with the ultimate goal of becoming financially independent.

In terms of investment priorities, property (45%) and share trading (38%) were the most popular options for young Aussie investors, while a quarter of respondents also said that they were topping up their superannuation in addition to employer contributions.

Commonwealth Bank’s research also captured what could be a generational shift in attitudes when it comes to talking about investing.

Rather than being a taboo topic, the vast majority (86%) of millennials surveyed said that they wanted to have ‘more open discussions’ about investing their money, particularly about trading on the stock market.

And given the surge in interest towards online share trading during the pandemic period, that’s perhaps not much of a surprise.

According to figures from CommSec, just under two thirds (63%) of the one million new CommSec share trading accounts which have been opened since February 2020 are held by millennial users.

The entry-level CommSec Pocket option - which offers a selection of “themed” exchange traded funds (ETFs) for users to invest in - has also proved popular with younger investors, with the bank noting that 80% of the 300,000 accounts opened since 2019 have come from under-40’s.

“We are seeing a behavioural shift from this younger demographic of investors,” said CommSec’s managing director, Richard Burns. “Seventy-one per cent are using CommSec’s leading mobile platforms for trading and there is strong demand for global exposure with Exchange Traded Funds (ETFs) and International equities proving to be a popular starting point for investment."

“Female investors are also growing in number and increasingly turning to CommSec Pocket to start their investment journey, accounting for 44 per cent of total new account openings – up from 31 per cent pre-COVID.”

RELATED: Stake lays down a marker with launch of $3 ASX brokerage

Thinking about dipping your toes in the stock market? Well before you get trading, you might be interested in reading about some of the best share trading platforms in Australia (including CommSec Pocket) as named in our 2021 Mozo Experts Choice Awards.

Otherwise if you’re interested in comparing a range of accounts on everything from features, brokerage and other fees, head on over to our dedicated share trading account comparison table to get started.

Compare share trading accounts - rates updated daily

Search promoted share trading below. Advertiser disclosure.
  • placeholder
    Live Account

    Small trade brokerage
    Monthly fee
    $5.00
    $0.00

    Superhero Live Account is trading for everybody. Zero brokerage when purchase ETFs and $5 when you sell, plus traders can get started with a minimum investment of just $100. Earn up to 5,000 Qantas Points on the first 10 trades or up to 10,000 points for transferring your portfolio to Superhero before the 28th Feb 2022 (T&Cs apply).

    Go to site
    Details
  • placeholder
    Trading Account

    Small trade brokerage
    Monthly fee
    $10.00
    $0.00

    Insights, recommendations and support for just $10 per trade under $1000. Get access to over 25 international markets. (See the CommSec page for details)

    Go to site
    Details
  • placeholder
    Share Trading

    Small trade brokerage
    Monthly fee
    $8.00
    $0.00

    ThinkMarkets offer an $8 flat fee share trading account with HIN ownership (CHESS sponsored) so you control your own shares plus free live price data and market depth. Winner of the Mozo Experts Choice Award 2021 in the Casual Trader and Casual ETF category.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Share Trading

    Small trade brokerage
    Monthly fee
    $5.00
    $0.00

    Opentrader offers great tools for the more advanced investor or trader, or people who want to learn. Pay only $5 brokerage for trades under $5,000 and live data is free. Sophisticated investors also get access to exclusive off market offers. Multiple Mozo Experts Choice Award winner.

    Go to site
    Details
  • placeholder
    Active Investor

    Small trade brokerage
    Monthly fee
    $9.90
    $0.00

    CMC Markets Invest offer a powerful web and mobile platforms & competitive pricing on thousands of instruments. Winner of a Mozo Experts Choice Award 2020 in the Regular Trader category^.

    Go to site
    Details
  • placeholder
    Share Trading

    Small trade brokerage
    Monthly fee
    $8.00
    $16.67

    IG is part of a major FTSE 250 company with over 185,000 clients worldwide. Commission from just $5 for customers making 3+ trades per month.

    Go to site
    Details

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.