Online Trading UK: Some Facts Backed Up by Statistics


You might have heard that John Doe is invested in online trading. Ever wondered how that even works? Or maybe, how do those online investors conceive so much information? It’s all numbers and stats!

Well, those numbers and stats are often money in the making. If you know how the financial market works, it will become more apparent. How one trending stock is going up, and some are going down by the minute is all about money coming and going out of the system. A simple analysis of the market trends could help you understand all of that.

Anyways, if so much is there to read in blunt numbers, what percentage of people are trading in the financial market? Is it all hype and buzz of the time? Or does it have any substance to it? Let’s crunch some numbers to find out below.

But first, what is online trading?


Trading in the financial market means you invest your money on financial instruments like shares, bonds or securities, currencies, and more. Previously, it needed a phone call or a visit to a physical brokerage and relying on their expertise. But with the internet in hand, now you can perform all your investment activities from home. Even while you are traveling, you can keep yourself updated all the time. Yes, there is a broker here too. But the digital platform allows you to access the services over the internet, whenever and however you please. The algorithm does all the calculations, and your broker does the dealing within the platform with a lower fee than traditional trading.

The UK loves the trading opportunities online

With the rise of technology and online trading platforms like , more and more people are getting involved in the UK. It is mainly because of the current situation of the world due to the pandemic. But the fact that online trading is made more accessible by digital platforms cannot be denied. A survey in 2024 found that almost one-third of the total UK population owns shares, which is a 50% increase from the 2018 level. All these new investors must have used various online trading platforms.

Many people are still missing out on ISAs


Despite many banks and financial institutes now offering stocks and shares ISAs online, only 5% percent of people in the UK have stock and shares ISAs, totaling £22.6 billion in adult stocks and shares ISAs alone. It is already a massive leap from last year, but most investors still miss out on the tax-free income allowance. It looks like online ISA providers have a long way to catch up with retail and institutional trading.

Technology is an open door for all

As once the investment was reserved for the rich and elite, now it has changed. Anyone with the least amount of savings can invest in their desired product. The use of technology and algorithms has made it easy to understand for even kids in their boyhoods. That is why what once was an industry for retirees is frequented by people at a very early age now. As per statistics, 75 percent of Generation Z and 74 percent of millennials plan to own stocks in the future. As handheld devices are now essential, it is safe to assume that most will enter the market online.

Safety and low risk in the pandemic


Another reason is the financial and health safety online trading provides. The pandemic has made it hard for everyone. Jobs, businesses are being shut down, and everything went online. In this scenario, people turned to online trading in the UK, where none has to travel or go out to grow their wealth. The introduction of innovative trading platforms also facilitated this change, with the global eTrading market surpassing 8-billion dollars in a whisker.

Change in the lifetime savings strategies

Research conducted by Barclays Equity Gilt found that UK shares have invariably returned around 5% since 1899. In contrast, cash savings returned less than one percent after calculating inflations. Moreover, thanks to the convenience of online trading in the UK, Brits can now easily invest in stocks, bonds, equity funds, and such to maximize their life savings.

Thanks to the accessibility of trading platforms, trading habits have also changed. For example, the shares in the ’80s stayed with its investor for over nine or ten years before they moved. But nowadays, investors let go of a stock position within eight months or so.

Why are people siding towards online trading?

  • Tech advancement and easier access to the trade market are attracting more people with little savings.
  • Low-risk factors and low broker rates make people invest online rather than opening up a business of their own.
  • Pandemic has hit everyone hard, and people are searching for an alternative to traditional share business.
  • The high return percentage and the low-interest rates offered on savings push people toward the opportunities of trading securities.
  • Early birds follow a trendy lifestyle. Hence everyone is following in their friends and others.
  • An easier way to learn and research the trade market has made it a good income source for the younger generation.

The bottom line


The London Stock Exchange indexes fell in 2019 before the pandemic hit the world. But from March 2024 to now in 2024, some key LSE indexes in London have broken their historical highs a few times. It indicates that people are more interested in a secured form of investment than anything else on the curve.

More people are getting influenced by seeing others. The advanced trading system facilitated by fintech innovations has attracted many of the UK’s population to financial trading. It includes most generations, but Gen Z and millennials are more likely to trade. Things like easy access to the internet, lack of physical efforts, the comfort of homely surroundings, and low broker fee are coming together to make more people trade different financial instruments. So, when are you planning to start trading yourself?

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