Retail trading is trading carried out by private individuals with their own money, through accounts held at a broker. It is distinguished from the activity of an institutional investor such as a pension fund, insurer or hedge fund. Retail traders deal in smaller sizes, generally have less information and slower technology, and receive stronger regulatory protection, including limits on leverage and mandatory risk warnings in many countries.
Online and mobile brokers, zero-commission pricing and fractional shares have widened participation since the 2010s. In the United States many retail share orders are not sent to an exchange but are executed by wholesale market makers under payment for order flow arrangements. Beyond shares, retail traders are active in options, currencies, crypto assets and products such as the contract for difference. Regulators' studies of day trading and leveraged products have repeatedly found that most retail accounts lose money over time.