{"id":113395,"date":"2021-02-18T16:21:50","date_gmt":"2021-02-18T16:21:50","guid":{"rendered":"https:\/\/precoinnews.com\/?p=113395"},"modified":"2021-02-18T16:21:50","modified_gmt":"2021-02-18T16:21:50","slug":"retail-trading-boom-sparks-500-plus-rally-in-small-german-brokers","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/retail-trading-boom-sparks-500-plus-rally-in-small-german-brokers\/","title":{"rendered":"Retail trading boom sparks 500%-plus rally in small German brokers"},"content":{"rendered":"<p>MILAN (Reuters) &#8211; The retail trading boom has fired up the stocks of some small German brokers, including one run by around 50 people, which reported a 10-fold rise in annual profit after an almost similar jump in its share price in less than a year.<\/p><figcaption>FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, February 17, 2021. REUTERS\/Staff\/File Photo<\/figcaption><p>From being among the smallest players by market capitalisation in its field to boasting a 1,200% rise in its shares, Lang &amp; Schwarz is the latest example on how lockdown boredom and high savings rates in Europe have triggered a surge in stock investing by non-professionals.<\/p>\n<p>The hype around the record breaking run in bitcoin and Wall Street darlings like Tesla, or the Reddit-fuelled surge in GameStop and cannabis stocks in 2021, has given another impulse to the boom driving meteoric gains in Lang &amp; Schwarz, as well as Tradegate and Baader Bank since March 2020.<\/p>\n<p>Germany, the most populous country in Europe and where financial literacy is high, has emerged as a hot spot for fund managers investing in the sector\u2019s stock.<\/p>\n<p>\u201cWe haven\u2019t seen such a boom since the end of the 1990s,\u201d said Roger Peeters and Christoph Frank, executive partners at pfp Advisory in Frankfurt, which holds a stake in Lang &amp; Schwarz.<\/p>\n<p>\u201cIn Germany there are a number of companies from platforms to stockbrokers and focused banks which could gain a lot of profit from this development. The crucial question is: how sustainable is the development?,\u201d they added.<\/p>\n<p>After initially surging on Thursday Lang &amp; Schwarz shares saw some profit taking. The stock however remained 7% below the record close marked earlier this month. Shares in Baader Bank, a market maker and brokerage, and Tradegate, a retail bank and trading firm, also eased after rising around 850% and 500% respectively from March lows.<\/p>\n<p>\u201cA big part of the success of these companies is tied to an explosion of volumes in 2020\/2021 due to the pandemic and the large liquidity on markets,\u201d said Michele Pedroni, senior portfolio manager at DECALIA in Geneva.<\/p>\n<p>Baader Bank saw accounts on its trading platform more double in 2020 and is upbeat on this year, while Tradegate more than doubled its dividend after pre-tax profit jumped 568% last year.<\/p>\n<p>Online broker Sino, whose shares have soared nearly six-fold from March, has recorded a further improvement of trading activity in January after orders processed in the three months to December rose 177%.<\/p>\n<p>Lang &amp; Schwarz said late on Wednesday that in January it managed 6 million trades, a record monthly number that was also higher than the volume it handled in all of 2019.<\/p>\n<p>Pedroni said that beyond the pandemic\u2019s short-term volume boost, some of these platforms have earned new clients and that should represent a benefit over a longer time frame.<\/p>\n<p>Meanwhile, Lang &amp; Schwarz, cautioned that there were no assurances this trend would continue throughout 2021.<\/p>\n<p>But the ongoing buzz prompted Credit Suisse to upgrade Deutsche Boerse to \u201coutperform\u201d citing among other reasons the activity in Tradegate, in which the stock market operator has a stake.<\/p>\n<p>\u201cIncreased retail trading participation for Tradegate even brings a growth story to (German share trading platform) Xetra\u201d.<\/p>\n<p>Graphic: Trading boom &#8211;<\/p>\n<p>Source: <a href=\"https:\/\/www.reuters.com\/article\/us-retail-trading-germany\/retail-trading-boom-sparks-500-plus-rally-in-small-german-brokers-idUSKBN2AI2AN\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MILAN (Reuters) &#8211; The retail trading boom<\/p>\n","protected":false},"author":3,"featured_media":113394,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23054],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Retail trading boom sparks 500%-plus rally in small German brokers - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/markets\/retail-trading-boom-sparks-500-plus-rally-in-small-german-brokers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Retail trading boom sparks 500%-plus rally in small German brokers - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"MILAN (Reuters) &#8211; 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