Retail Power Plays: How Individual Investors Are Reshaping the ASX

Retail Power Plays: How Individual Investors Are Reshaping the ASX

In recent years, Australia’s investment landscape has experienced a surge in retail investors entering the share market, reshaping traditional investment patterns.

As of 2023, approximately 7.7 million Australian adults – around 38% of the adult population – held on-exchange investments such as ASX-listed shares, exchange-traded funds (ETFs), and listed investment companies (LICs). This marks an increase from 6.6 million in 2020, indicating a significant rise in retail investor participation. The number of younger investors is also growing rapidly, with 22% of new investors aged between 18 and 24.

Data from 2025 shows, the median ASX retail trade is about A$5,500, with the average on‑exchange investor executing 12 trades per year, almost exclusively via low‑cost online brokers. The median retail portfolio is now A$170,000. Multiply that by 7.7 million on‑exchange investors and retail capital controls ~A$1.3 trillion in listed assets – around half the value of the entire ASX.

Recently we’ve seen record ‘buy‑the‑dip’ flows – brokerage and JPMorgan flow data show retail accounts added A$4.1 billion in net equity purchases on the single busiest day of April 2025’s market volatility – an all‑time intraday record.

These numbers reinforce the speed and scale at which retail sentiment can swing—and why companies need an IR strategy that anticipates and harnesses that momentum.

However, while greater participation can enhance market liquidity and diversification, it also raises important questions about investment strategies and risk management.

Retail by the Numbers: Key Insights for 2025

How Retail Investors Are Redrawing the ASX Playbook

Retail investors now account for a significant share of daily trading on the ASX. Commission-free platforms, digital education tools, and online communities have lowered the barrier to entry. But with this access comes behavioural divergence from institutional norms – especially the tendency toward short-term trades influenced by market sentiment and social media hype.

This has contributed to heightened volatility in certain stocks, particularly among small caps. Companies without clear fundamentals or effective communications are especially vulnerable to sudden swings in sentiment.

The Future of Retail Investing in Australia

The rapid rise of retail investors has reshaped Australia’s share market and will continue to influence investment trends in the coming years. As regulatory frameworks adapt to this growing cohort, market participants must prioritise education and informed decision-making.

If you’re looking for an investor relations partner who experienced in retail investor marketing, contact Investability today.