Online investing assets hit £192bn at Q3 2017 but nervous investors increase cash holdings

Research from Boring Money finds that online investment assets grew to £192.4bn by the end of the third quarter of 2017, an increase of 17% on the year before. Market leader Hargreaves Lansdown grew assets by 21%, increasing its market share to 43%.

Consolidation is also in evidence as TD Direct Investing customers now log-in to Interactive Investor branded websites. The combined Interactive Investor business is now the second largest direct-to-consumer investment platform, with a 10% share of the online investment market.

Average account sizes now top £50,000 and a key factor in this growth is consolidation, which will be further encouraged as fixed fee models become more widely adopted.


The top five groups currently make up nearly three-quarters of the market with a 73% market share.

Hargreaves Lansdown

£82.0bn

Interactive Investor

£19.5bn

Fidelity

£16.0bn

Barclays/Barclays Stockbrokers

*£15.1bn

Alliance Trust Savings

£8.4bn

* estimated

 

Robo advice still makes up a fraction of the market, with 1% of assets overall. However, robo advisers are the fastest growing segment of the market, with total assets increasing 133% compared to the year before.

 

Hargreaves Lansdown

£82.0bn

43%

Other DIY platforms

£54.6bn

28%

Bank

£26.9bn

14%

Asset managers

£16.4bn

9%

Life companies

£10.7bn

6%

Robo advisers

£1.7bn

1%

 

Holly Mackay, CEO of Boring Money comments, “The Big Boys still dominate the pack. Hargreaves Lansdown has actually increased its market share to an almost vulgar 43% as the challengers’ impact is seen more in column inches than assets under management. Yet against this backdrop of growth, the anecdotal evidence of investor nervousness we hear, caused by high markets and tales of impending doom, is reinforced by greater cash holdings this quarter which form 9% of all non-advised AUA with online propositions.  This most unloved bull market continues.“