Why retail interest in futures trading is booming

July 18, 2025

Retail investors are increasingly turning to futures trading, a space traditionally dominated by institutional players seeking to hedge risk. Once reserved for corporates managing exposure to commodities, currencies and interest rates, futures are now capturing the interest of smaller investors drawn to their speculative potential and leverage opportunities.

Devexperts, which offers software for capital markets firms, recently explored the growth of retail futures trading.

Futures trading has long mirrored the rhythm of the business cycle, with activity peaking each quarter as firms hedge against market volatility. But the pandemic catalysed a turning point, thrusting these instruments into the public eye and onto retail trading platforms. That momentum has not slowed, even as lockdowns ended.

Historically, futures trading dates back to Japan’s Dojima Rice Exchange in the 17th century, where rice was such a critical commodity that the professional class were paid in it. Candlestick charts, now a staple of market analysis, also trace their roots to this exchange. The concept later matured in Chicago, where forward contracts helped farmers lock in prices and standardised delivery terms. That evolved into the modern futures markets we know today, with CME Group emerging as a global leader.

The pandemic created a massive surge in derivatives activity. In 2020, the World Federation of Exchanges reported a 40.4% increase in volumes. Retail traders also shook markets during the meme stock frenzy, coordinating trades online to challenge institutional short sellers. By 2023, futures trading hit 137bn contracts globally, up 64% year-on-year. In early 2025, major exchanges such as CME and ICE posted record daily volumes, with CME’s micro E-mini contracts—designed for retail—experiencing a 35% rise in average daily volume.

Retail futures activity is now 50% higher than pre-pandemic levels, according to the Commodity Futures Trading Commission.

This growth has been mirrored by a wave of consolidation and acquisitions. UK-based IG Group made a landmark $1bn acquisition of US broker Tastytrade in 2021. Plus 500 followed suit with purchases of Cunningham Commodities in the US and Mehta Securities in India. Meanwhile, Robinhood acquired both Marex and digital asset exchange Bitstamp, with plans to roll out digital asset futures. Kraken made headlines with a $1.5bn acquisition of NinjaTrader, gaining a key FCM licence in the process.

Part of the appeal lies in a transformed trading environment, Devexperts explained. The rise of zero-commission apps like Robinhood has democratised access, while social media and YouTube have flooded the market with free educational content. The launch of micro E-mini futures in 2019, allowing users to trade major US indices at a fraction of the cost, also helped open the door for beginners.

Demographically, younger investors from the Millennial and Gen Z cohorts are more active and risk-tolerant than previous generations. Having come of age during financial crises, they tend to favour trading over passive strategies and show strong interest in digital and alternative assets—traits that make them ideal customers for brokers expanding into futures.

Looking ahead, the trend seems poised to continue. Retail appetite for diverse instruments is growing, and firms are racing to enhance trading platforms and infrastructure to meet demand. As the lines blur between asset classes and trading venues, futures are well on their way to becoming a staple in the portfolios of a new generation of investors.

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