Bringing you live news and features since 2006 

DIY investing booms with 20 per cent annual growth in customer numbers

RELATED TOPICS​

Analysis from Boring Money indicates a record GBP329 billion is now invested across the UK through D2C investing services, including DIY investing platforms, robo advisers and bank share dealing platforms, as the UK’s largest DIY investing platform, Hargreaves Lansdown, has added 126,000 clients to reach 1.62 million users (for the four-month period ending April 2021).   

Across the market customer numbers have risen above 7 million for the first-time, with year-on-year growth of more than 20 per cent fuelled by younger investors opening an investment account for the first time. Boring Money’s research indicates that 9 per cent of all investors today have opened their first account in the last year. 

A combination of strong customer growth and stock market recovery means assets under administration (AUA) across the market have grown more than GBP100 billion year on year (YoY) to GBP329 billion, following a sharp drop in early 2020 triggered by the outbreak of the Covid-19 pandemic.  

Other notable trends include: 

  • Growth among share dealing platforms, catering primarily to traders: Boring Money’s data tracking indicates quarterly AUA growth in excess of 10 per cent among some of the largest share dealing platforms 
  • Robo advisers catering to less confident investors: Robos had a strong quarter and Nutmeg is notable for reaching GBP3 billion under management, having a 33 per cent share of the robo market 
  • Cost conscious investors: Vanguard continues to gain significant traction and grew by nearly 30 per cent over Q1 to assets of GBP6.7 billion 
  • The ‘buy and hold’ platforms: The likes of AJ Bell and Hargreaves Lansdown continue to be the leading platforms for those seeking a long-term home for shares and funds and command a huge share of overall AUA 

Boring Money CEO, Holly Mackay, says: “The DIY market continues to evolve and is no longer the domain of older, golf-playing hobbyists in Surrey. Average ages are falling and first-time investor numbers are growing. 

“Our data shows that there has been a surge in new, young account holders, and 9 per cent of all investors have been investing for 12 months or less. This is reflected in the fact that the average age of a new customer with the market’s largest provider is just 36.  

“However, the growth in customer numbers hides the fact that volatile markets have also rocked confidence. Our Advice Report 2021 confirms that 76 per cent of all investors rate their confidence at just 6 or less out of 10. Few investors are truly confident managing their money, yet advice remains the preserve of the wealthy – just 3.6 million customers in the UK have a financial adviser today. 

“It is great to see so many people investing and taking control of their money. But with this comes a growing need to figure out how to offer better advice to the average person on the street.” 

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by