Return of Day Traders Drives Rise in Volume
Even as mom-and-pop investors sit out the rally, short-term players–including some classic individual day traders–appear to be making a comeback.
Trading volume surged 14 percent or more last month from July at online brokerage firms Charles Schwab Corp. (SCHW), TD Ameritrade Holding Corp. (AMTD) and E*Trade Financial Corp. (ETFC). Electronic trader Knight Capital Group Inc. also posted a 7.7 percent increase.
It amounts to an unusually large jump in online trading, traditionally the domain of smaller investors. “Usually, August is one of the worst months of the year,” said Richard Repetto of Sandler O’Neill Partners L.P., with volume typically falling 10 percent from July.
