What type of investors do retail brokerages primarily serve?

Retail brokerages primarily serve small or individual investors because their business model is designed to cater to the needs of this demographic. These brokerages provide services such as easy access to trading platforms, research tools, and educational resources that empower individual investors to manage their investment portfolios.

Unlike institutional investors, who typically deal with larger sums of capital and may require more complex financial products and services, retail brokerages focus on making investment opportunities accessible to everyday individuals. This includes offering lower fees, user-friendly interfaces, and the ability to trade smaller amounts of money without requiring significant capital. The goal is to facilitate personal investment decisions for the average investor, fostering an environment where small-scale investors can participate in the financial markets effectively.