Ten years ago, the stock markets were an exclusive playground for banks, fund managers and hedge funds. Small investors? They were mostly spectators who occasionally bought a DAX share and then left it for 20 years. But today? Today they are causing turbulence on Wall Street, driving share prices to absurd heights - and even causing hedge funds worth billions to falter.
From nobodies to market whisperers
In 2015, the stock market world was still clearly divided: Institutional investors had the knowledge, the networks and the capital, while retail investors tended to invest on the side - often blindly on the recommendation of their bank advisor. But that has changed drastically.
Three major factors have fueled this development:
1. trading apps & fee-free trading: thanks to apps such as Trade Republic or Robinhood, anyone can buy shares with just a few clicks - without high fees, without complicated order masks.
2. social media as a stock market advisor: Platforms such as Twitter and YouTube have replaced the traditional financial advisor. Today, trends in social media determine which shares go through the roof.
3. access to knowledge & data: Banks used to have the information advantage. Today, every retail investor has access to analyses, key financial figures and AI-supported trading tools.
GameStop & Co. - How retail investors are rewriting the stock market
Probably the best-known case: $GME .
In 2021, small investors took on hedge funds worth billions who sold the video game retailer's shares short. The online community got organized, drove up the share price and forced the professionals to buy in at a high price. The result? Hedge funds such as Melvin Capital lost billions - David had indeed dealt a blow to Goliath.
It was a similar story with $AMC (+4 %) .
Actually a movie theater chain on the decline, but thanks to massive buying from the Internet, the share price rose to absurd heights. The small investors didn't care whether it was economically justified or not - they wanted to challenge "the big boys".
German retail investors in 2025 - what makes them tick today
In Germany, we are traditionally more cautious. But a lot has changed here too:
The securities assets of German households are about to break the 2 trillion euro mark - a record.
57.2% of German private investors' financial assets are now invested in ETFs, particularly on the MSCI World or the FTSE All-World.
Most popular stocks? Alongside US giants such as $NVDA (-2,46 %) , $MSFT (+0,62 %) and $TSLA (-2,92 %) many are also betting on current hypes such as $RHM (+0 %) , $NU (+0,29 %) or $HIMS (+8,3 %) .
Is this the democratization of the financial markets - or a new bubble?
On the one hand, it's great: private investors have never had as much power as they do today. They are informed, networked and heavily involved. On the other hand, when share prices are no longer determined by company figures but by viral trends, this can be dangerous.
Because in the end, the stock market is still not a casino. Or is it?
What do you think? Are retail investors an asset for the market or more of a risk?
