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The continued rise of DIY trading

31/01/2022

Last year, a report from research and publishing house Boring Money revealed a rise in “DIY investors”, with a total of 950,000 accounts opened by such investors in 2020. 

In mid-2021, we wrote about the boom in the number of younger people entering the investment market. But why is DIY investing continuing to prove popular, and what choices are available to DIY investors? 

 

Why is DIY investing on the rise? 

There are many factors contributing to the recent increase in DIY investing. The first of these is the COVID-19 pandemic. 

A combination of lockdown boredom and having fewer places open in which to spend their disposable income is cited by many as one reason for the rise in DIY investment. However, one other major factor is the growth of investment apps. 

Often fee-free, these apps make investing more accessible for younger audiences and bypass the need to use a broker. However, there are real fears that they are introducing a sense of gamification to investing, which could see newer investors taking on more risk than they initially intended. 

Finally, it may be that people are drawn in by seeing the incredible success of certain shares. Over the course of 2021, for example, Watches of Switzerland saw growth of 159% in a year, while £1,000 invested in Bitcoin at the start of January would have turned into £1,622 by the end of December. With more free time to learn about share prices, could this be another reason why DIY investing is on the rise? 

 

Choosing a DIY investment method

There are many factors that will determine the best DIY investment method for an individual investor to use. These could include, among others:

  • Level of investing experience
  • The type of assets required
  • Fees charged
  • Educational resources
  • Analytical tools
  • Minimum investment amount

Of course, it is also vital to ensure that the platform you choose is regulated to ensure that your investment is as safe as possible. 

Those looking to enter into the world of DIY investing will find plenty of advice online, including comparisons of the best apps for different needs. The most important thing before embarking on a DIY investment journey is to do plenty of research, and to understand the risks involved. 

 

“Stable Rise Limited is not authorised or registered by the Financial Conduct Authority. The marketing materials are not intended to provide financial advice nor promote any individual financial products.”

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