Some 78 per cent of UK wealth managers and IFAs have seen an increase in the level of trading stocks and shares by their clients in the past two years.
Research by GraniteShares, an issuer of exchange traded products, revealed just 3 per cent of wealth managers and IFAs have witnessed a dramatic decline in the level of stocks and shares traded.
The study comprising 100 wealth managers and IFAs found 97 per cent thought the stock market would become more volatile over the next 12 months.
As a result of this 87 per cent said they expected to see an increase in the level of trading by their clients with 27 per cent expecting a dramatic increase.
According to the research, all respondents predicted a rise in the level of trading of stocks and shares over the next two years.
With 68 per cent expecting to see a 25 to 50 per cent increase in the level of trading by their clients.
Some 20 per cent anticipated a 10 to 25 per cent boost in activity while 11 per cent thought trading would soar between 50 and 75 per cent.
Will Rhind, founder and chief executive 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.”
The research also found an increasing number of respondent’s clients were copy trading, a portfolio management strategy that allows traders to copy the positions taken by another trader directly.
According to the data, 68 per cent of wealth managers and IFAs said between five and 10 per cent of their clients copy traded while 26 per cent said under five per cent of their clients replicated the trades of others.
Some 4 per cent said more than 10 per cent of their client base had adopted this strategy.
In terms of how long since clients had implemented the strategy, 63 per cent of respondents said their clients started copy trading three to four years ago.
With 21 per cent saying clients had begun using the strategy four to five years ago.
alina.khan@ft.com
