Paris, 5 March, 2026 – Retail trading is no longer a marginal feature on the fringes of financial markets. New survey findings from Horizon Trading Solutions show retail flow is firmly embedded in institutional trading activity and is reshaping execution strategy.
Nearly two-thirds of traders at tier 2 and 3 banks and institutional brokers surveyed said at least 40% of their total trading activity now involves retail flow, either directly or indirectly. Only 1% said retail activity accounted for less than 20% of their trades. While retail participation in the US is typically estimated at 20% to 35% of total market volumes, the results suggest its influence on institutional trading is broader and more deeply integrated than headline figures imply.
The shift is not only about volumes. The growth of retail trading across equities, options, crypto and newer micro derivative contracts is prompting changes in how institutional market participants trade. Close to three-quarters of respondents said rising retail participation has required adjustments to their execution strategy. Almost one-third said it has fundamentally changed the way they trade. Despite the disruption retail trading has caused in high-profile episodes, such as the GameStop incident in 2021, most institutional participants view retail trading positively.
Looking ahead, retail influence is expected to shape market structure as well as trading strategy. When asked which retail-driven initiative would have the greatest impact on institutional participants, 25% pointed to extended trading hours. This ranked ahead of broader global retail expansion at 21%, while crypto and fractional trading each received 15%. Prediction markets featured much lower at 8%, although the ban on binary options outside the US is likely a contributing factor.
“Retail trading is not just a feature of financial markets – it’s actively shaping infrastructure and liquidity dynamics for all market participants,” said Sylvain Thieullent. “It’s not obvious all firms will benefit as retail’s influence grows. Institutions that invest in better data, smarter automation and more flexible infrastructure will be best positioned to benefit from this shift. Those that adapt quickly can turn retail participation into a competitive advantage.”
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About Horizon Trading Solutions
Horizon Trading Solutions is a global provider of highly customized investment and technology solutions for financial institutions, brokerages, and exchanges. Its comprehensive suite includes automatic market-making systems, algorithmic trading tools, and risk management solutions designed to deliver high performance, resilience, and operational efficiency across multiple asset classes. Since 2022, Horizon’s Dubai office has hired 8 staff, contributing to the highest-quality customer support.
According to a survey by Horizon Trading Solutions, nearly two-thirds of traders at tier 2 and 3 banks and institutional brokers said at least 40% of their total trading activity now involves retail flow, either directly or indirectly. Only 1% of respondents reported that retail activity accounted for less than 20% of their trades. Close to three-quarters of surveyed institutional participants said rising retail participation has required adjustments to their execution strategy. Almost one-third indicated that it has fundamentally changed the way they trade, driven by growth across equities, options, crypto, and micro derivative contracts. Extended trading hours was cited by 25% of respondents as the retail-driven initiative with the greatest impact on institutional participants. This ranked ahead of broader global retail expansion at 21%, while crypto and fractional trading each received 15%. Despite disruptions caused by high-profile episodes like the GameStop incident in 2021, most institutional participants surveyed view retail trading positively. The survey suggests that institutions see retail flow as an integral part of market dynamics rather than a purely disruptive force. According to Horizon Trading Solutions, institutions that invest in better data, smarter automation, and more flexible infrastructure will be best positioned to benefit from the growth of retail trading. Firms that adapt quickly can turn retail participation into a tangible competitive advantage in liquidity and execution.Frequently Asked Questions
