Forex, CFDs and Crypto: Italian Investors Are Getting Younger—and Riskier

Despite often being portrayed in Hollywood movies as risk-takers who live on the edge, in the financial markets, the average Italian investor would likely give up investing altogether rather than build a portfolio riskier than a default-free bond.

For years, Italy has been known for its cautious approach to investing, with most adults favouring low-risk assets like bonds and real estate. However, a shift is underway. While overall investor numbers have slightly declined since 2022, younger Italians are showing a growing appetite for financial markets—particularly in higher-risk areas like CFDs, forex, and cryptoassets.

A significant number of Italians plan to start investing or expand their portfolios in the next 12 months, potentially adding 2.1 million new investors to the market, according to a BlackRock report. Data from eToro further reinforces this trend, showing that younger Italian traders are more engaged in riskier assets compared to older generations.

Could this signal a major shift in Italy’s historically conservative investment culture?

Read the previous part of this three-part series: 9 Barriers, 1 Big Problem: Why Italians Still Don’t Invest

The Rising Demand in Italy

Despite the marginal decrease in the number of investors since 2022—around 1%—while in countries like Great Britain, Germany, and France, there has been an increase well into double digits, BlackRock’s report highlights a potential and significant increase over the next 12 months.

Of the surveyed investors, 17% declared that it is very likely they will either start investing or increase their current investment portfolio. Among this portion of Italian adults—equivalent to 15 million people—2.1 million do not currently have an investment portfolio. If all these potential investors actually enter the financial markets, the number of Italian investors will increase by around 15% over the next 12 months, reaching 33% of adults in Italy, assuming the number of adults remains roughly the same.

Massimo Citoni, Regional Manager Italia of eToro, described a dynamic and expanding market: “Italian retail investors are often characterised as risk-averse, favouring stable assets such as bonds, real estate, or cash savings. While these traits are rooted in tradition, the full picture reveals a growing appetite for trading and investing across generations. […] Younger investors, in particular, are drawn to technology-driven opportunities like tech stocks and digital assets while also recognising the value of diversification.”

Highlighting the emerging brokerage industry of Italy, Citoni said: “Progress is driven by competition. […] At eToro, we will continue to expand our offering to provide the solutions investors need for every step of their investing journey.”

eToro is a well-known and established broker that offers services worldwide, currently counting more than 30 million users, with over 10.4% based in Italy.

Analysing the average portfolio of an eToro trader compared to the data provided by Consob is insightful because the average eToro user is significantly younger than the one analysed by the Italian market authority. This provides an exclusive advantage in identifying potential trends among younger investors.

The average Italian investor, according to Consob’s poll, is just over 50.4 years old, and only 28.37% of Italian investors are under 44 years old. On the other hand, the average age of an eToro client is 38.15 years old, with 70.12% of clients being under 44 years old.

As mentioned by Massimo Citoni, the data provided by eToro demonstrates a significant shift among younger investors towards riskier assets such as equities, cryptoassets, forex, and alternative investments. While Consob’s average portfolio allocates only 5% to derivatives and alternative investments, one in five of eToro’s younger traders invests in forex and alternative investments, suggesting a much larger portfolio allocation towards CFDs.

Also, read this part in this Italy-specific series: Italy’s CFD Market Has Potential—So Why Are Foreign Brokers Still Staying Offshore?

Italian CFD Market: An Insider’s View

After analysing the charts and numbers from Consob’s report, as an Italian investor and trader, I can’t help but share my own perspective.

However, it is also important to consider that Italy has an ageing population, and most statistics are skewed by the behaviour of older generations. In reality, based on my own participation in the financial markets, I find the figures provided by eToro more reflective of the growing interest in riskier asset classes, including CFDs.

Furthermore, while the barrier to entry related to the advantages of an Italian broker remains relevant, in most cases, Italians are not afraid to open a secondary brokerage account to pursue their financial goals. The issue? Many may not yet realise they have this interest.

Most Italians, especially university students I speak with, simply dismiss the idea of investing in the financial markets, citing a lack of financial education. Therefore, brokers considering expansion into the Italian financial markets should focus on strong marketing campaigns and educational initiatives to bridge this gap and guide younger market participants towards riskier assets.

Italian investors, as a whole, are often described as cautious savers and planners—risk-averse and relatively hesitant towards alternative investments, foreign assets, and derivatives. These general characteristics are deeply rooted in tradition and fuelled by misconceptions, including the belief that they lack sufficient financial knowledge, time, or money to start investing. In reality, Consob’s data highlights a significant mismatch between Italian investors’ self-evaluation of their financial knowledge and their actual understanding. Additionally, what appears to be a lack of disposable funds is often due to the allocation of savings towards goals such as handling unexpected events, supporting family, enjoying life, and purchasing property.

However, the data provided by Massimo Citoni and the team at eToro Italia has given us a fresh perspective on the topic by analysing a younger population sample.

Among eToro’s clients, one in five investors allocates funds to alternative investments and forex, while one in three has gained exposure to cryptoassets. This contrast—especially pronounced among Gen Z investors—signals strong potential for brokers in the CFD industry in Italy, given the growing demand paired with the highest portfolio value and margin per transaction in Europe.