Nearly half of the UK's online investors are feeling the pinch of increasing inflation.
Investors are increasingly moving to low-cost trading platforms.
Higher US CPI translated to higher Bitcoin price
The latest
UK inflation reading published yesterday (Wednesday) showed a fall in the
consumer price index (CPI) to its lowest level in more than a year. However,
this is no consolation for retail traders.
The newest
edition of the ‘UK Online Investing Report’ by Investment Trends reveals
that nearly 44% of the UK's online investors are grappling with the impacts of
escalating inflation and the cost of living. The report sheds light on various
facets of the retail online investing scene in the UK, from long-term investors
to frequent traders.
The
State of Online Investing in the UK
The study
indicates that around 2.66 million UK adults have unlisted funds or traded
listed investments online. Active listed equities investors have remained
fairly steady over the past year, with 1.23 million, which is a slight increase from
1.22 million in May 2022. This steady figure is largely due to the reactivation
of previously dormant clients.
Lorenzo Vignati, Associate Research Director at Investment Trends
According
to Lorenzo Vignati, the Associate Research Director at Investment Trends, the
adoption of cash products like fixed deposits and high-yield savings accounts
almost doubled in the past year. It reflects the global rise in interest rates.
“Nearly one
in two online investors admit to feeling the brunt of higher inflation – with
many reporting a drop in portfolio value and savings,” Vignati added.
Additionally, the UK is witnessing a growing trend of dependence on artificial intelligence (AI) for financial guidance, as revealed by the most recent edition of the annual Investor Index study. The survey highlights that 73% of investors in the UK place their trust in ChatGPT, an AI chatbot, to offer dependable financial advice in the coming years.
The Impact of High Fees
and Changing Preferences
Tough
market conditions and high fees have contributed to the stagnation of dormant
online investors and have led to increased platform-switching activity. About
11% of online investors are likely to open a new account with a different
platform over the next year.
In terms of
investment holdings, it is estimated that 42% of total investments are held in
stocks and shares ISAs, which is up from 39%, and 15% in (Self-Invested Personal Pensions)
SIPPs and down from 18%. When it comes to confidence in investment decisions,
particularly for SIPPs, pre-retirees report the highest levels, while Zoomers
and Millennials exhibit the lowest levels of confidence.
“With a
notable disparity in confidence to make investment decisions from one
generation to the next, platforms have a key opportunity to review their
engagement and support services and ensure they are meeting the needs of their
investors across the entire user journey,” Vignati commented.
Low-Cost Platforms Gaining
Popularity
Investment
Trends' report also
uncovers a shift from traditional investing platforms to lower-cost
alternatives. As of May 2023, 61% of UK online investors are either using a
disruptive commission-free or low-cost investing platform.
Pure-listed
equities investors predominantly choose disruptive platforms, while low-cost
platforms are gaining traction among those pursuing a mixed equities and funds
strategy.
Investment
Trends, a research firm in the wealth management industry across the UK and
Australia, based this report on a survey of 13,386 online investors conducted
between April and May 2023. In another recent study, the company reported that the United Arab Emirates' FX and CFDs traders population reached a record-breaking 49,000 in 2023.
The latest
UK inflation reading published yesterday (Wednesday) showed a fall in the
consumer price index (CPI) to its lowest level in more than a year. However,
this is no consolation for retail traders.
The newest
edition of the ‘UK Online Investing Report’ by Investment Trends reveals
that nearly 44% of the UK's online investors are grappling with the impacts of
escalating inflation and the cost of living. The report sheds light on various
facets of the retail online investing scene in the UK, from long-term investors
to frequent traders.
The
State of Online Investing in the UK
The study
indicates that around 2.66 million UK adults have unlisted funds or traded
listed investments online. Active listed equities investors have remained
fairly steady over the past year, with 1.23 million, which is a slight increase from
1.22 million in May 2022. This steady figure is largely due to the reactivation
of previously dormant clients.
Lorenzo Vignati, Associate Research Director at Investment Trends
According
to Lorenzo Vignati, the Associate Research Director at Investment Trends, the
adoption of cash products like fixed deposits and high-yield savings accounts
almost doubled in the past year. It reflects the global rise in interest rates.
“Nearly one
in two online investors admit to feeling the brunt of higher inflation – with
many reporting a drop in portfolio value and savings,” Vignati added.
Additionally, the UK is witnessing a growing trend of dependence on artificial intelligence (AI) for financial guidance, as revealed by the most recent edition of the annual Investor Index study. The survey highlights that 73% of investors in the UK place their trust in ChatGPT, an AI chatbot, to offer dependable financial advice in the coming years.
The Impact of High Fees
and Changing Preferences
Tough
market conditions and high fees have contributed to the stagnation of dormant
online investors and have led to increased platform-switching activity. About
11% of online investors are likely to open a new account with a different
platform over the next year.
In terms of
investment holdings, it is estimated that 42% of total investments are held in
stocks and shares ISAs, which is up from 39%, and 15% in (Self-Invested Personal Pensions)
SIPPs and down from 18%. When it comes to confidence in investment decisions,
particularly for SIPPs, pre-retirees report the highest levels, while Zoomers
and Millennials exhibit the lowest levels of confidence.
“With a
notable disparity in confidence to make investment decisions from one
generation to the next, platforms have a key opportunity to review their
engagement and support services and ensure they are meeting the needs of their
investors across the entire user journey,” Vignati commented.
Low-Cost Platforms Gaining
Popularity
Investment
Trends' report also
uncovers a shift from traditional investing platforms to lower-cost
alternatives. As of May 2023, 61% of UK online investors are either using a
disruptive commission-free or low-cost investing platform.
Pure-listed
equities investors predominantly choose disruptive platforms, while low-cost
platforms are gaining traction among those pursuing a mixed equities and funds
strategy.
Investment
Trends, a research firm in the wealth management industry across the UK and
Australia, based this report on a survey of 13,386 online investors conducted
between April and May 2023. In another recent study, the company reported that the United Arab Emirates' FX and CFDs traders population reached a record-breaking 49,000 in 2023.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Executive Interview | Jas Shah | FMLS:25
Executive Interview | Jas Shah | FMLS:25
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
