British traders go all out for shares – Now’s the time to go multi-asset

158,000 people claim to be trading shares daily in the United Kingdom,. 11% have traded shares more because they could no longer bet on sporting events during the early stages of the pandemic because these had been cancelled and 14% have traded more because they have more time to do this because of being furloughed

Greek shares trade

New research from ETF provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK and US stocks,  reveals that since the Coronavirus crisis started, 15.5% of people who own shares claim to have started buying and selling more, and 3% of the adult population – over 1.5 million people – say they bought some for the first time.  Only 10% of people who own shares say they have been trading them less since the crisis started.

Of those people who started to trade more:

  • 30% said it was because share prices fell dramatically at the start of the crisis, and this presented a good buying opportunity.
  • 25% said they wanted to take advantage of increased market volatility.
  • Just over one in five (22%) said it was because there was a period when share prices started to rise dramatically and they didn’t want to miss out on this.
  • 14% said it was due to the fact that they had been furloughed and had more time on their hands
  • 11% said it was because they could no longer bet on sporting events because these had been cancelled.
  • Lastly and, perhaps somewhat alarmingly, 11% said it was because they had been made redundant and they thought trading shares would be a good way to make money.

In terms of the frequency of share trading since the crisis started, GraniteShares research reveals that 2% of those that have traded shares – some 158,000 people, say they do this on a daily basis, and 4% claim to trade four to five times a week.

Will Rhind, Founder and CEO of GraniteShares, said: “Our research shows that the COVID-19 crisis has resulted in a significant increase in retail investors trading individual stocks.  This trend has been fuelled by a combination of factors including increased volatility in the markets, people having more time on their hands as a result of being furloughed, and, in some cases, an alternative to betting on sporting events, which had been cancelled.

“However, investing in shares should always be part of a planned and balanced investment portfolio. For many retail investors a portfolio is likely to consist of a mix of funds, ETFs and potentially some individual stock positions, as well as a cash reserve.

”At GraniteShares, we have certainly seen a pick up in interest from sophisticated investors in the short and leveraged single stocks Exchange Traded Products.  Among our exposures to UK blue chips, Rolls-Royce has been the stand out in terms of investor interest, followed by the banks, Barclays and Lloyds Banking Group, and oil majors, BP and Shell.  Looking at our new economy exposures to US tech, Tesla both on the long and short side has been the most actively traded, followed by Amazon and Apple.

GraniteShares Short and Leveraged Single Stock Daily ETPs on UK companies



Read this next

Institutional FX

Euronext reports double-digit growth in FX volume

Pan-European exchange, Euronext has reported a 10 percent rebound in the average daily volume on its spot foreign exchange market. The ADV figure stood at $19.6 billion in January 2022, which is up from December’s $18 billion.

Digital Assets

Voyager subpoenas FTX’s inner circle over Alameda loan

Bankrupt crypto broker Voyager Digital, represented by law firm Kirkland & Ellis, is seeking court approval to subpoena Sam Bankman-Fried’s inner circle, as well as Alameda Research’s former executives.

Retail FX

AvaTrade seals sponsorship deal with F1’s Aston Martin team

Dublin-based forex broker AvaTrade today announced that it has concluded a sponsorship deal with Formula One’s Aston Martin Cognizant team that entails sponsorship rights and other marketing benefits.

Executive Moves

M4Markets onboards Invaxa CEO Marios Antoniou as COO

Seychelles-regulated brokerage firm M4Markets has appointed Marios Antoniou, who has a colorful career within the foreign exchange industry, in the capacity of its Chief Operations Officer.

Digital Assets

GK8 now allows clients to control their digital assets as they would their fiat

“As the institutional market is increasingly turning to self custody, our policy engine empowers them to automate transactions, approvals, and even crucial workflows, while providing the highest degree of security, consistency, governance and control.”

Digital Assets

Retail CBDCs in the UK: “Welcomed” by CryptoUK and R3, but “Dystopian” for ETC Group

“At this stage, we judge it likely that the digital pound will be needed in the future. It is too early to decide whether to introduce the digital pound, but we are convinced preparatory work is justified”, said the BoE and HM Treasury.

Institutional FX

Centroid taps Iress API to provide retail brokers with real-time market data

“It has always been a challenge to have an efficient, elegant solution for market data and order execution for retail brokers, but with Iress we have found absolutely the right partner to add to our client offering.”

Digital Assets

Ramp launches FCA-approved off-ramp product, onboards Brave, Trust Wallet, Ledger

“To obtain and maintain our FCA registration, we must meet and operate within their strict anti-money laundering and counter-terrorist financing standards. This is a huge achievement for us, as compliance is a cornerstone of our business and what we stand for.”

Institutional FX

State Street launches FIX API for Fund Connect ETF platform

“Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100% digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”