Mitch Caplan led E*Trade as CEO during the electronic trading revolution, guiding the company through its transformation into a full-service financial platform serving millions of retail investors. He now serves as interim CEO and chairman of the board at Yieldstreet.
In 1983, a dentist in Michigan executed the world’s first online trade from his home computer, sending an order through Trade Plus—a precursor to E*Trade. At a time when individual investing meant calling a broker during business hours and relying on their recommendations, this simple transaction marked a radical departure. Overnight, technology shifted the balance of power from institutions to individuals, permanently reshaping how the world would interact with markets.
As CEO of E*Trade at the time, I watched the forces that drove this revolution firsthand. Now, I see the same factors converging in private markets. (Disclaimer: I currently lead Yieldstreet, which among other things helps retail investors access private markets.) We’ve already proven that technology can democratize closed markets. The question is whether we’ll design this next wave of access—to private markets—with a greater commitment to serving and protecting the average investor.
First, low-cost, accessible investment vehicles are emerging. Just as ETFs and index funds dramatically lowered barriers to stock market participation, new fractional ownership models and specialized funds are making private assets available at lower minimums.
The rise of electronic trading expanded opportunity but also created new risks. The dot-com bubble saw retail investors lose trillions as platforms prioritized volume over outcomes, gamifying investing rather than educating investors. If private markets open without proper guardrails, we risk repeating these mistakes at an even greater scale.
The solution starts with purpose-built products. Instead of retrofitting institutional vehicles with high fees and lock-ups, we need investments designed for individuals. Imagine target-date funds incorporating private assets for savers with long-time horizons. Or technology that makes private market performance as transparent as checking your 401(k).
This transformation is overdue. While retail investors have gained easy access to public stocks, they’ve been locked out of private markets—where most value creation in the economy occurs. The companies staying private longer, the real estate developments reshaping cities, the innovation happening in venture-backed startups—all of it has been reserved for institutions and the ultra-wealthy.
That’s finally changing. This time, however, we have the benefit of hindsight—and the responsibility to use it.
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.
