Retail on the Rise: How Canada’s Retail Investors Are Changing the Game
At in equities trading conference in Toronto organized by TMX that took place on May 7th, one standout session focused on the growing influence of the retail investor in Canadian capital markets. The conversation covered everything from evolving trading behaviors and the demand for more flexible trading hours to the increasing appetite for global product access and digestible financial content.
The consensus was clear: retail trading in Canada is undergoing a transformation, and the financial ecosystem needs to evolve to meet the new expectations of investors.
What’s Driving the Rise in Retail Trading?
Canadian retail investors are no longer passive participants. Today’s investors are:
Digitally native
More financially literate
Seeking control, flexibility, and transparency
Actively shaping product innovation through their demands
Brokerage platforms and providers are responding with smarter tools and more inclusive products to empower this new class of investor.
Key Trends Shaping Retail Trading in Canada
- Fractional Trading Is Becoming the Norm
Retail investors increasingly want to invest specific amounts of money, not full share quantities. Fractional—or notional—trading lets them stay fully invested and diversify portfolios, even with limited capital. The ability to reinvest dividends automatically into fractional shares further enhances this flexibility. Demand for Extended Trading Hours Is Growing
Retail investors want to trade outside of traditional 9:30–4:00 hours. Pre-market, post-market, and even 24/5 trading options are being explored. What’s surprising is that it’s not just active traders driving this shift—it includes investors with non-traditional work schedules who can’t trade during regular hours. With improving liquidity during extended sessions, this trend is expected to accelerate.- Digestible, Educational Content Is Essential
Financial literacy is on the rise, but so is the need for engaging, simplified content. Newsletters and podcasts that break down market activity into accessible insights are key tools in empowering informed decisions and building trust with younger or first-time investors. - Global Product Access Is Now Expected
Retail investors want access to global equity markets without the friction of currency conversion or limited trading windows. Products that offer exposure to global companies in CAD, and during Canadian hours, are gaining traction. These innovations remove barriers and help investors build more diversified portfolios. - Incentives and Engagement Features Are Redefining the Model
Retail investing platforms are introducing gamification features and direct incentives to promote healthy financial behaviors. Examples include matching contributions to retirement accounts or encouraging regular portfolio check-ins—approaches that aim to build better habits rather than just increasing trading volume.
Risks and Responsible Innovation
While innovation is necessary, the panel emphasized a need for responsible execution:
Extended trading hours must be managed carefully to avoid risks tied to volatility and thin liquidity.
More complex instruments like options require stronger investor education.
Transparency around execution quality could be improved—especially as retail investors become more sophisticated and curious about how their trades are handled.
There was a shared belief that Canada’s market infrastructure is robust, but that transparency standards and investor communication need to evolve in step with retail activity.
What’s Next for Canada’s Retail Trading Ecosystem?
To keep momentum growing—and ensure that Canadian investors stay active within local markets—several priorities emerged:
Broaden access to Canadian-listed securities by supporting more domestic IPOs and listings
Continue to innovate responsibly around trading tools and access models
Improve education and engagement through transparent, easy-to-understand content
Encourage collaboration across technology providers, brokers, and regulators to align on what a future-ready Canadian capital market looks like
The shift is already happening. The challenge—and opportunity—is to design a system that meets the needs of tomorrow’s retail investor while safeguarding the integrity of Canadian markets.
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