More Brits eye investing as low-cost platforms elbow into the market
The UK DIY investment market swelled last year as the rise of low-cost platforms lured more investors into taking the plunge of managing their own assets.
The do it yourself market has grown 19 per cent over the past twelve months, totalling £772bn assets under administration, as 18.4m Brits ploughed capital into the market, according to the latest data from investment research firm Boring Money.
By the end of last year, there were 13.4m DIY investment accounts, a near-quadrupling from the 3.6m in 2016, as low-cost platforms enticed more people to enter the stock market.
Shiny new low-cost platforms
The surge comes as more low-cost platforms enter the market, shaking up the investment landscape and attracting first-time investors who are looking for minimal commission.
Over 50 per cent of investors cited low costs as the biggest factor of consideration when choosing an investment platform, as using well-known and traditional brands fell out of favour.
Last year, 71 per cent of people prioritised using trusted brands when investing, but this plummeted to just 38 per cent seeing as a top priority a year on.
New digital platforms are increasingly winning over investors, after old school firms hiked fees and trading costs, leading new, younger investors to seek options with commission free trading, no FX fees and offerings of modern assets, such as crypto.
During 2025, just five per cent of beginner investors opted to plough money into Hargreaves Lansdown, while over 40 per cent opted for the fast-growing platform Trading 212, according to Boring Money research.
Holly Mackay, chief executive of Boring Money, said: “We are now entering the third wave of DIY investors.
“During the pandemic the second wave emerged, of younger investors buoyed by meme stocks, crypto and rising markets.
“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.”
Broader audience and regulatory backdrop
While the post-pandemic investment boom was driven by young investors, the latest stock market wave has been boosted by 35 to 44 year olds, as participation amongst the age group grew seven per cent.
It comes as people within the age group become higher earners and enter a period of rapid wealth accumulation, making them more likely to invest than their younger counterparts who have found themselves drowning dealing with a struggling graduate job market and student loan crisis.
The rise also aligns with government ambitions to boost retail investing in the UK to foster greater economic growth, as concerns surrounding hoarding cash continue to grow, with more investors moving away from the relative safety of savings.
Meanwhile, seasoned investors are becoming used to geopolitical uncertainty, doubling down on their investments rather than pull away.
Mackay said: ”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…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.”