Competition to lure retail investors is hotting up just as the government launches a campaign to encourage more direct share ownership.
Today AJ Bell said it had attracted 50,000 new customers in the second quarter, a record, which takes its total customer base to 723,000. It now looks after nearly £109 billion on behalf of those investors.
Chief executive Michael Summersgill said the significant increase in new customers reflected “the value placed on our low‑cost propositions, ease of use and trusted brand.”
On Thursday the government began an advertising blitz to encourage savers who are used to putting money into cash ISAs to move instead to equities, such as an investment in a stock and shares ISA.
Research last month from research company Boring Money found that there are now 18.4m investors in the UK, attracted by low-cost players. Trading 212 is the most popular among new investors due to zero admin and share dealing fees.
Holly Mackay, CEO of Boring Money, said: “We are now entering the Third Wave of DIY investors. 15 years ago this was a market for affluent older male hobbyists. During the pandemic the Second Wave emerged, of younger investors buoyed by meme stocks, crypto and rising markets. We now see the emergence of the Third Wave as investing becomes more mainstream.”
The biggest of the retail stockbrokers, Hargreaves Lansdown, faced a backlash from consumers recently over controversial changes in fee structure. That pushed up the costs of investing for some of its clients.
Arch rival interactive investor, owned by Aberdeen, said it had enjoyed a £3bn inflow of funds in the three months to March. It credited part of that to the changes at Hargreaves, running adverts that read: “And to a certain competitor who recently changed their fees, thank you.” Hargreaves said it had in fact cut some fees for consumers.
Boring Money notes that there remains a gender gap when it comes to investment.
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There are now 11m male investors compared with 7.4m women, a gap of 3.6m people, up from 3.3m in 2025.
The government’s ad campaign hopes to move investors into riskier investments to hold for the longer term in search of better returns.
Figures from the Investment Association show that £10,000 in a cash ISA a decade ago would now be worth £8,400 due to inflation. The same in a global equity fund would be worth nearly £20,000.
Savvy the Squirrel is the character invented to appear in the ads which will run on TV, online and on billboards.
Chris Cummings, the chief executive of the Investment Association lobby group, which is steering the campaign, said: “We didn’t want an Einstein to lead the campaign for investing. That could have put people off. And so we were looking for a character that people would relate to and enjoy spending time with, and Savvy the Squirrel came through … [as] somebody who they felt they could have a conversation with.”
Slogans include “squirrelling away your money”. The ads will cost up to £10m a year with the backing of big City names such as Aviva and Schroders.