A growing trend for financial DIY among investors
Written by: Steve Lodge - Financial Times
14/08/2010
Categories – Background Information
Execution-only stockbrokers enjoyed increased account openings and record share trading volumes last year (2009) while other wealth managers saw their numbers of client portfolios drop, in what is seen as a growing trend for financial DIY among investors. Full service stockbrokers (according to Compeer) saw the largest reduction in portfolio numbers of 6.8%, against the 9.1% increase at execution-only stockbrokers. Assets in SIPPs saw particularly strong growth of 47.9% to £21.7bn. The cash market transactions of private investors rose from 7.5m to 12.1 million. Average pre-tax profits among execution-only stockbrokers rose to 33.7% in 2009, compared with a drop in margins to 21.5% at wealth managers.
