Rob Talevski, CEO of Webull AU, said Webull has been receiving a growing number of under-35s inquiring about establishing SMSFs and, in response, has added a new SMSF offering that provides a platform with no monthly fees while also offering features like live streaming ASX prices, live support, and free trade ideas.
“We’re definitely getting a lot of under 35 inquiries, and that’s what drove us to add these additional features,” Talevski told SMSF Adviser.
“[From feedback from young customers] we have found that many of them are setting up an SMSF because there’s been a shift anyway from just leaving their money with big industry funds. In the past, setting up an SMSF used to be a really long, painful process – you would go to an accountant, spend thousands of dollars, and wait months. Now you can do that online, and as long as all your ducks are lined up, it can be done in a matter of days, for under $1,000.”
The anecdotal evidence from Webull is in line with findings from SMSF software company Class, which reported in its annual Benchmark Report in February that there has been a spike in Millennial establishments. In FY2024–25, they grew at a faster rate than any other demographic, increasing to 33.6 per cent from 28.5 per cent as of 30 June 2024.
Additionally, the most recent annual Vanguard/Investment Trends report showed that the average age of SMSF establishments now is 47, with an average starting balance of around $330,000.
Talevski said many of the youngest SMSF members are tech-savvy and well-informed regarding compliance issues.
“[They say] ‘I like doing things online, and I can take control [of my super] easily’. They’re also finding the cost of setting up SMSF, as well as the ongoing admin, is actually quite cheap,” he said.
“These younger demographics are really our future investors and are falling into the market, and the growth in that sector has increased exponentially in the last few years. That’s where we’re getting the demand from. That’s where the drive is coming from.”
Talevski continued that many of the younger cohorts of SMSF members and trustees already use trading platforms regularly, and many are switching from traditional industry funds to SMSFs because of the flexibility and control they offer.
“A lot of them want control. Even if it’s only $20,000–$50,0000 with which they are starting their fund, they feel they can manage that better than a fund manager from whom they get a report maybe once a year that tells them they paid thousands of dollars in fees without much movement in their overall balance,” he said.
“There’s a real significant shift, and I think at Webull we’re in the box seat because we have actually a pretty large representation on our client book. Around 60 per cent of our clients are actually under 35. They like the online and digital aspect [of what Webull offers].”
