New research from consumer website and investment research firm Boring Money shows DIY investing is continuing to move into the mainstream in the UK.
One in three UK adults now invests, equivalent to around 18.4 million people, with the number of DIY investment accounts growing by more than 19% over the past year.
The total value of assets held on UK DIY investment platforms has now reached £572 billion.
The research, based on survey data from 6,465 UK adults alongside analysis of more than 40 investment platforms, suggests the profile of investors is also changing.
While the surge in retail investing seen after the pandemic was driven largely by younger adults, the fastest growth over the past year has been among 35 to 44-year-olds.
The average age of a DIY investor has also fallen from 55 five years ago to 49 today, pointing to investing reaching a broader section of the population.
The competitive landscape among investment platforms is also shifting.
Cost remains a key consideration for investors when choosing where to invest, with 55% citing low annual charges as the most important factor.
At the same time, loyalty to established brands appears to be weakening.
Among those who started investing in the past year, just 5% chose Hargreaves Lansdown, compared with 42% who opted for newer low-cost platform Trading 212.
Holly Mackay, chief executive at Boring Money, said: “We are now entering the third wave of DIY investors.
“Fifteen years ago this was a market for affluent older male hobbyists.
“During the pandemic the second wave emerged, of younger investors buoyed by meme stocks, crypto and rising markets.
“We now see the emergence of the third wave as investing becomes more mainstream.
“British adults now manage over 13 million DIY investing accounts and have more choice than ever.
“Competition is hotting up.
“Pricing is not the only element of value but it’s an important one and we anticipate more pricing pressure ahead.
“We anticipate strong continued growth this year but of course the big potential storm cloud on the horizon is geopolitical uncertainty coupled with high tech valuations.
“However the third wave of investors are accustomed to short-term noise and we see a more muted reaction to market volatility today than we would have done 10 years ago.
“The majority of retail investors today tend to buy the dips rather than run for the hills, but of course the worst could yet lie ahead of us.”
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