Gen Z Australians drive surge in short-term options trading
Gen Z Australians are showing a sharp tilt towards short-term, higher-risk investment strategies, amid persistent cost-of-living pressures and an unpredictable financial environment. Data from Tiger Brokers indicates a surge in Gen Z engaging with trading platforms, with a 66% increase in sign-ups to the Tiger Trade app between FY24 and FY25.
Demographic surge
Gen Z users, defined as those born from the mid-1990s to early 2010s, now comprise 31.2% of the total Tiger Trade account base. This marks a notable climb from the previous year, when the growth rate for this age group stood at 37%. The most pronounced increase stems from young workers in the hospitality sector, who represent almost one in ten Gen Z investors on Tiger Trade. Other prominent industries include information technology (6.09%), engineering (8.51%), and education-science (5.3%).
Short-term trading
The data revealed a pronounced pivot towards options trading among Gen Z investors. There has been a 141% rise in the number of Gen Z clients trading options compared to the prior year. On average, these users hold options positions for just 21 days. This timeframe is considerably shorter than the typical holding period for such instruments, which generally ranges from 30 to 90 days. The increasing appeal of short-term positions comes as global equity markets have experienced substantial volatility over the past year.
Hospitality sector
Hospitality workers account for 9.59% of Tiger Trade's Gen Z user base, the highest among all occupations tracked. This is followed by engineering (8.51%), IT (6.09%), and education-science (5.3%). The high participation from hospitality is particularly notable given the sector's largely casual workforce, estimated at 64%. Other fields such as finance, accounting, grocery, and warehousing make up smaller portions of Gen Z investors on the platform.
Appeal of options
Rapid and unpredictable swings in equity markets have made short-term trading strategies more attractive to young investors seeking flexibility. The appeal of options trading lies partly in its lower capital requirements relative to purchasing shares outright, and its defined expiry dates, which can suit investors looking for faster turnover.
"Considering the current financial environment, it's natural that Australians are seeking additional sources of income, such as investing. Compared with Gen X and Gen Y, who tend to prefer more conservative, long-term investments like property, Gen Z show greater interest in lower-barrier, shorter-cycle investments such as stocks and options. Tiger Trade's wide range of tools and resources are especially appealing to Gen Z, particularly tech natives, as they enable them to invest more efficiently," said Cruz Li, Head of Marketing, Tiger Brokers Australia.
Tech habits
The preference for immediate feedback and fast-paced engagement is reflected in trading patterns among young Australians.
Their use of apps like Tiger Trade mirrors habits developed from digital platforms characterised by quick interactions, such as short-form video and gamified applications.
"Options Trading requires typically less capital than directly buying stocks, allowing traders to control larger positions with a smaller investment upfront. Additionally, having witnessed significant market swings recently, Gen Z are drawn to options because, unlike long-term stock holdings, options have expiration dates and shorter trading cycles," said Li.
"Young Australians increasingly expect fast feedback and immediate results, mirroring the instant responsiveness offered by short-form video platforms and gamified applications in their daily digital interactions. This habit is translated directly into their trading practices, evident in the +141.24% increase in Gen Z who traded options from FY24 to FY25," said Li.
