The rapid growth of online trading systems has transformed investment practices, particularly among digitally active investors. This study examines the influence of digital financial literacy on investor returns in online trading environments. Using a quantitative and descriptive research design, primary data were collected from 150 online investors aged 18–40 years through a structured questionnaire. The data were analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis in SPSS. The findings reveal a significant positive relationship between digital financial literacy and investor returns. Investors with higher levels of digital competence demonstrate better risk management practices, diversified portfolios, and more informed trading decisions. The regression results indicate that digital financial literacy significantly predicts investor returns, explaining a substantial portion of the variance in performance. The study concludes that strengthening digital financial literacy can enhance investment outcomes and promote sustainable participation in online trading systems.