Number of Brazil stock market investors up 43% in 2 years, nears 4 million

RIO DE JANEIRO, BRAZIL – Data released by B3 on Wednesday, August 11, show that 3.8 million accounts were registered on the exchange in June 2021, compared to 2.2 million in 2019 – an increase of 43%. The survey was based on the exchange’s database.

When considering only the number of registered individuals, the exchange counts 3.2 million investors in the first half of the year, compared to 2.2 million in the same period last year. This figure excludes institutional investors and unifies duplicate registrations of individual investors who have accounts in more than one brokerage house or bank.

The survey also shows that investors are entering the stock market at a younger age and with lower amounts of money. Among the newcomers this year, half are aged between 25 and 39. Moreover, most newcomers start with lower investments.

The average first investment in the stock market by newcomers is R$352 (US$68) – in 2020, the average first investment stood at R$985.

“The concept that investors need a lot of money to invest has been defeated. A first investment of around R$300 is the lowest amount ever recorded in the history of B3,” says Felipe Paiva, Director of Relationship and Individuals at B3.

Investors’ average amount in the stock market is R$10,000. According to the director, this shows that investors are experimenting with the stock market, investing a low amount of around R$300 to then build up assets and take risks with new investments.

Women still account for only 30% of investors in the stock market, the same percentage registered in 2020. However, the data show that women have been entering the stock market with higher amounts. The average of the first monthly investment made by women is R$481, while the average for men is R$303.

Geographic and product diversification

In terms of geographical distribution, Brazil’s Southeast continues to account for the largest number of investors. However, the remaining regions have shown a higher relative increase in the comparison between 2018 and 2021. The North and Northeast have respectively registered a 575% and 486% growth in the number of investors over the past three years.

Product diversification has also increased. In 2016, 78% of investors invested only in stocks. In June 2021 this figure dropped to 50%. The number of individual investors holding more than one asset has also increased. In June 2021, 80% of these investors invested in more than one ticker — in 2016 that figure stood at 41%.

The rise of BDRs and ETFs

The volume of investors in the stock market grew by 58% in the first 6 months of 2021 compared to the same time frame the year before, while total investors increased by 56% in the real estate fund market.

However, the biggest increases concern BDRs (Brazilian Depositary Receipts) and ETFs (Exchange-Traded Funds). BDRs, which were released to individuals in October last year, registered an almost 3,000% growth in the number of investors in the first half of 2021 compared to the same period last year. The ETF market registered a 104% increase in the number of investors considering the same time frame.