Retail traders piled into European stocks as big money held back

In one of Europe’s fastest rebounds from a stock rout, retail buyers may be listening to Warren Buffett’s advice to “be greedy when others are fearful.”

The headquarters of Saxo Bank, which has seen “substantially” higher average daily trading volume recently. | Photo: PR/Saxo Bank

Brokerage houses from Germany, U.K., France and Denmark are reporting a surge in mom and pop trading since the market selloff spurred by the pandemic, akin to the Robinhood phenomenon in the U.S., even as institutional money stayed on the sidelines for much of the rebound since mid-March.

“We already had exponential account opening growth before the crisis and this development has now accelerated,” said Andreas Friedrich, a spokesman for German broker Trade Republic, which offers commission-free trading similar to U.S. peer Robinhood. “Many of our customers saw the market moves as a good chance to enter the equity market.”

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