Australians are investing online in record numbers, transforming the way everyday investors build wealth and access investment opportunities.
According to data from the ASX in 2023, approximately 70% of Australian investors used online trading platforms to buy shares.
The online investment landscape continues to evolve rapidly, with over 40 online trading platforms available for investors to choose from.
While the movement began with digital share trading, it has now expanded into a much broader shift toward online wealth platforms, alternative assets and increasingly, property investment.
The rise of online investing has been driven by technology, allowing investors greater flexibility and more control over their financial futures.
According to ASIC, active online traders reached 1.25 million in 2023, boosted by over 435,000 first-time investors alone.
Approximately 16% of Australian adults now meet the classification of a wholesale investor, up from just 2% in 2002, according to FundBase Group.
With factors such as inflation and rising property values set to drive net assets values higher, this figure could rise to around 30% by 2031.
As their wealth continues to grow, more investors are expected to take a proactive role in managing their portfolios, further increasing demand for online investment opportunities.
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The shift to online investing stems from both practical and cultural reasons.
Digital platforms have made investing substantially easier and more accessible than ever.
Investors can now open accounts, explore opportunities and manage their portfolios with just a click of a button, with mobile technology increasing the convenience even further.
According to CommSec, nearly half of trades executed are now made via mobile.
At the same time, Australians are becoming more financially engaged and educated, with the accessibility of financial content online driving conversations about investing in new ways.
The result is a new wave of self-directed investors who are motivated to research and manage their investments independently online.
The core structure of property investment has remained mostly unchanged for many decades, until recently when online investment models emerged.
Rising housing values and higher borrowing costs pushed traditional investment out of reach for most, creating a gap for alternative options to be explored.
Australians can now gain exposure to real estate without purchasing a property, through fractional property investment models.
These models appeal to investors as the barrier to entry is significantly lower, allowing investors to access opportunities with far less capital than before.
The popularity of fractional investing in real estate has grown rapidly, especially during the recent market volatility that motivated investors to seek opportunities outside of traditional shares.
Real estate has long been viewed as a more stable asset class and fractional investing has opened up even more opportunities to gain access to this.
As technology continues to evolve, online property investment platforms are expected to play an increasingly central role in how Australians access property in the future.
With the number of wholesale investors in Australia set to continue rising, many are seeking more sophisticated ways to diversify their portfolios, beyond shares and traditional property investment.
The growing wholesale investor segment is becoming more proactive in managing their wealth online, looking for access to high-quality investment opportunities.
Fraxtor Australia provides wholesale investors with a secure and accessible way to grow wealth through a fully digital platform.
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