Analysis of Securities Dealers Operating in the Czech Republic with Respect to Czech Retail Investors' Approach to Risk in 2023

This work responds to the current market situation of securities brokers who are trying to take advantage of increasing number of investors and acquire new clients. Specifically, the work deals with the analysis of securities brokers regarding the risk profile of the Czech retail investors. As part of the investigation, based on the frequency of mentions, 15 brokers were identified who offer their services to Czech citizens as well. The seven most popular of them are subsequently analyzed and compared in terms of structure, business model, terms of trade etc. When comparing the fee structure and compiling the risk attribute rating scale, four brokers come out as the least risky and three brokers come out with a higher proportion of risky attributes. None of the brokers falls into the third, high-risk group. The second survey (collected by Ipsos) shows that it is not possible to strictly define the three risk profiles of investors as there is an intersection within all three groups. While risk-averse individuals make decisions as risk-averse, risk-neutral individuals also tend to be more risk-averse than risk-loving. The decision-making of risky individuals is then a combination of all three mentioned approaches. At the same time, the correlation test demonstrates a positive relationship between investors' risk assessment and their decision-making processes, thereby falsifying the established hypothesis.