Close to four out of five (78%) UK based IFAs and wealth managers have seen an increase in the level of share trading by their clients over the past two years, according to research from GraniteShares.
In contrast, only 3% of those questioned said they have seen a dramatic decrease in the level of stocks traded, while nearly a fifth (19%) say there has been no change.
The study with 100 advisers and wealth managers found nearly all (97%) think that the stock market will become more volatile over the next 12 months and as a result 87% expect to see an increase in the level of trading by their clients.
Other findings include more than a quarter of those quizzed (27%) said they expect a ‘dramatic increase’ in trading. Around one in 10 (9%) believe trading levels will remain the same.
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The researchers also gathered views on copy trading. More than two in three (68%) advisers and wealth managers said that between 5% and 10% of their clients copy trade, 26% said under 5% of their clients do so, and 4% said over 10% of their clients have adopted this strategy.
More than three out of five (63%) said their clients started copy trading three to four years ago, whilst more than one in five (21%) implemented this strategy four to five years ago.
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Will Rhind, founder and CEO of GraniteShares, said: “Share trading is becoming increasingly attractive given the strong performances of markets around the world in general and the surge in many individual stocks, that offered huge opportunities to investors and traders.
“The switch to more trading by the clients of wealth managers and IFAs highlights that investors are taking a more active approach to managing their wealth and that is reflected in the demand we are seeing for our long and short ETPs, which are efficient instruments to get leveraged exposures for tactical trading and also portfolio hedging.”
