What Is a Retail Investor?

By Mike Price – Updated Oct 17, 2025 at 2:41 AM

Key Points

Retail investors can trade stocks easily using apps like Robinhood, impacting market dynamics.
They face fewer restrictions, allowing investment in small-cap stocks and diverse assets.
Retail investors may pay higher fees and need time management skills to analyze stocks.

A retail investor is a non-professional investor. Also known as individual investors, retail investors have an increasing impact on the market.

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A retail ivnestor working on a trade. — Image source: Getty Images

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Table by author.
Pros	Cons
Concentration	Fees
Stock size	Time
Liquidity	Access
Flexibility	Economies of scale
Circle of competence	Circle of competence

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Retail investors likely won't ever be the dominant force in the stock market. But innovations in trading technology, the many pros of investing for yourself, and easy access to websites such as this one to learn about investing make it increasingly easy for everyday people to handle their own stock purchases and sales.

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About the Author

Mike Price is a 23 year-old Masters of Finance graduate who first started learning about investing on the Motley Fool when he was 13. He is currently seeking a job.

XMFMichaelPrice

Mike Price has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.