Investor Warning: Retail investors at risk when trading in volatile markets

MiFID Firms

Date: 06 August 2020

The Central Bank is warning retail investors that investing during periods of market volatility can mean increased risks for them and can lead to loss of their money.

A Central Bank analysis of the impact of the COVID-19 pandemic on retail investment activity found that

  • Activity (including the number of retail accounts and average number of daily trades) increased significantly during the period of increased market volatility
  • All firms reported an increase in the percentage of retail clients losing money in the period.

The full warning is published here.