DIY investor platforms brush off Covid-19 and march steadily on

New data published today by consumer investment website BoringMoney.co.uk confirms that as at September 30 2020, there was £270 billion in the UK DIY investment market, an increase from £252bn in September 2019.

This 7% growth in assets, despite the volatility in markets, masks a potentially more interesting trend as the number of client accounts increased by 15% over the year.

There are now 6.6 million DIY investment accounts in the UK.

CEO Holly Mackay comments: “Trading levels have been consistently peaking at up to three times normal levels of activity. More people are opening up investment accounts than ever. It’s actually been a good year for investment platforms.“

In terms of momentum, 2020 has been a notable year for the following providers who have seen £AUA increase by more than 50% over the past 12 months:

  • Interactive Investor (see below for more detail)
  • Moneybox
  • PensionBee
  • True Potential Investor
  • Vanguard (see below for more detail)
  • Wealthify

Mackay continues: “These 6 providers’ growth can largely be attributed to consolidation, new launches, low costs and/or ease of digital engagement. But despite their growth in £ terms, Hargreaves Lansdown continues to march on. Of the 900,000 new DIY investors in the past 12 months, 1 in 5 chose Hargreaves Lansdown as their home.”

Growth was also solid across the larger providers, with Q3 results from industry stalwarts as follows:

  • Hargreaves Lansdown, the biggest player in the market, saw AUA growth of 2.8% over the quarter, from £104bn to £106.9bn.
  • Its user numbers grew a further 2.2%, with an additional 31,000 accounts opened. It now has more than 1.44m customers compared to 1.26m at the end of Q3 2019 – growth of 14.5%.

  • AJ Bell Youinvest assets were up 7.2% for the quarter, with £13.4bn AUA vs £12.5bn in Q2 – delivering annual growth of 20.7% from £11.1bn in Q3 2019.
  • Its customer numbers also rose to more than 172,000 – up 6.2% from Q2 and 43.3% YOY.

  • Interactive Investor added another 4.1% to its AUA in Q3m taking it to £33bn – an increase of 54% YOY.
  • This rise came alongside a comparatively steady 21% YOY increase in user numbers.

  • Other winners included Vanguard, which grew its AUA by 13.2% for the quarter and 110% for the year.

- ENDS -

For further information, please contact:

Cara Whitehouse, PR & Communications Manager
cara@boringmoney.co.uk

About Boring Money

Boring Money is an independent research and publishing house which provides information, tips and Best Buy tools to savers and investors. It recently raised £900,000 through crowdfunding, with more than 12,000 weekly readers and investors supporting and engaging with the company. The business conducts regular research with industry providers and UK consumers to track the developing DIY investment market from both the customer and provider perspective. Boring Money holds test accounts with over 25 investment platform providers and also holds regular focus groups and interviews with consumers to ensure regular input and feedback from the user perspective.

Founder Holly Mackay has worked in the investment industry for 20 years and is supported by a team of 12 researchers, analysts and marketing execs. Boring Money is not regulated to give personal financial advice, nor is it regulated by the industry watchdog.

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