Investment statistics: What percentage of the UK population invests in the stock market?
Just over 3% of Brits are invested in stocks and shares ISAs, but what else do we know?
Updated . What changed?
What's in this guide?
- Quick overview
- Who owns UK shares?
- Who is and who isn't buying stocks and shares?
- Coronavirus and investing
- Reasons to invest
- Investor behaviour
- Most popular ways to invest: Movers and shakers
- Total value of global stocks traded
- London Stock Exchange (UK) trading: Market value
- UK Foreign Direct Investment
Investing in stocks and shares may seem a bit “wolf of wall street” to some, but just how much of the UK’s population is invested? We take a look at the breakdown of who’s investing, how they’re doing it and what they’ve invested in.
- 2.2 million people in the UK (that’s just over 3%) were subscribed to a stocks & shares ISA account in 2019.
- 13.5% of UK shares are owned by individuals (the rest is owned by institutions like banks and investment firms).
- 73% of men are considering investing, while 61% of women are.
- Of those with a stocks & shares ISA, 43.5% are women.
- The average length of time that people hold onto their shares for has dropped by 92% to 0.8 years since 1980.
- The total value of all stocks traded in the world in 2019 was $60.36 trillion (£45.75 trillion).
- The London Stock Exchange (LSE) average market capitalisation in 2020, so far, is £3.29 trillion.
Who owns UK shares?
Shares in the UK are traded on the London Stock Exchange (LSE). These shares are available to buy by any individual or company around the world. So who owns the most?
- The number of UK shares owned by individuals has been increasing, with individuals now owning 13.5%.
- The majority of shares are owned by people or businesses overseas, at 54.9%.
|Rest of the world||53.30%||53.70%||53.90%||54.90%|
|Other financial institutions||6.60%||7.10%||8.10%||8.10%|
|Private non-financial companies||2.30%||2.00%||2.20%||2.60%|
Who is and who isn’t buying stocks and shares?
The risky world of stocks and shares isn’t for everyone, so who is and who isn’t buying shares in the UK?
- 33% of Brits owns shares.
- 2.2 million people in the UK were subscribed to a stocks & shares ISA account in 2019.
- Only 43.5% of these ISAs were held by women (957,000).
- While 56.5% of stocks & shares ISAs were held by men (1.25 million).
- The average stocks & shares ISA account is worth £27,000.
- Men have slightly more money in their stocks & shares ISAs, at £29,500 compared to £25,800 for women.
Coronavirus and investing
After COVID-19 hit the world and made most of us housebound, many people used their time to invest, or at least to consider it. The results from a Finder survey done in May 2020 revealed that 20% of Brits thought the pandemic was a good time to invest, while equally as many thought to wait a bit longer.
|No change in opinion||46.70%|
|Already own shares||33.40%|
|More likely to invest||20.40%|
|Less likely to invest||19.55%|
The generation most likely to invest
While share trading was once the preserve of an elite minority, the democratisation of trading via online trading and investing apps is leading to a huge number of people now considering investing. Finder’s survey shows that three quarters of both generation Z and millennials (75% and 74%) already have or would consider investing during or after the COVID-19 pandemic. Despite being the generation that you might typically associate with share trading, only 60% of baby boomers said that they would consider investing in the future, while the figure drops to just 41% for the silent generation.
|Postmillennial/Generation Z (Born after 1996)||75%|
|Millennials (Born 1981-1996)||74%|
|Generation X (Born 1965-1980)||69%|
|Boomers (Born 1946-1964)||60%|
|Silent (Born 1928-1945)||41%|
Reasons to invest
The most popular reason for investing overall (55%) was due to the fact that savings accounts offer poor interest rates. 33% are intrigued by companies that do well and would be more likely to invest if they saw one doing well. 22% found that it was a good time to get involved in investing while many companies aren’t doing well.
|Reason to invest||Percent|
|I think savings account interest rates are poor||54.90%|
|I want to earn dividend income||51.38%|
|I would invest if I saw that a company was doing well||33.43%|
|I have easy access to investing platforms||28.87%|
|I want to invest in ethical companies||27.30%|
|I would invest if I saw that a company wasn't doing well||22.21%|
|More people appear to be investing now and I want to get involved||16.68%|
Generational: Reasons to invest
Why is the interest in investing higher now than before? Fundamental shifts are happening in retail investing: younger generations seem to be embracing the idea as it becomes more accessible via apps.
Of those who are planning to invest, over a quarter of both generation Z and millennials (28% and 26%) say the market crash has made them more likely to invest over the next 12 months. This is almost three times higher than the silent generation (10%) and significantly higher than baby boomers (16%).
Many generation Z and millennials said that dedicated platforms and apps had made them more likely to invest (27% and 32% respectively).
|Generation||It's more accessible due to apps||The apps are cheaper||I want to invest while prices are cheaper|
|Postmillennial/Generation Z (Born after 1996)||27%||17%||25%|
|Millennials (Born 1981-1996)||32%||24%||23%|
|Generation X (Born 1965-1980)||16%||11%||12%|
|Boomers (Born 1946-1964)||11%||8%||10%|
|Silent (Born 1928-1945)||8%||9%||4%|
Millennials are also the group most attracted to dividends; 42% cited them as a reason to invest. Freetrade’s Viktor Nebehaj says, “We’ve noticed that the vast majority of those investing in [dividend stocks] are millennials. They really, really love dividends.”
Why aren’t women investing in shares?
What is causing fewer women than men to invest in the UK? Research from Scottish Friendly suggests that 2.6 million women have been put off investing by the number of funds available to them.
- 43% of women say they haven’t invested because there are too many funds to choose from.
- 70% say getting back their original investment is more important than achieving big financial gains.
- Of the women surveyed, 40% were unaware you could save in more than one type of ISA in the same tax year.
The stock market is in constant transition, and over time, investor behaviour has changed.
- Investors are now holding onto their shares for 0.8 years on average before selling them. In 1980, the average was 9.7 years, representing a decline of 91.75%.
- What method has worked out the best so far in 2020? We decided to start the year with £1,000* placed in some of the most popular investments from last year, in the best savings account available on Finder, and under our mattress. Follow our live tracker to see which method is currently winning.
Most popular ways to invest: Movers and shakers
Fintech is quietly revolutionising retail investing in much the same way that challengers like Revolut, Monzo and Starling Bank have transformed banking – by breaking down the biggest barriers to entry: ease-of-use and cost.
Historically, the share market has been one of the greatest creators of wealth for people around the world, but it’s been limited to those that have access.”
The aptly-named Robinhood was the first to offer commission-free trading for US retail investors in 2015, and this has since been replicated by other disruptors, primarily as a way to attract new customers.
The drop in fees has been accompanied by an “appification” of investing platforms, both among established platforms like Hargreaves Lansdown, AJ Bell and Fidelity, and challengers like Trading 212, Degiro and eToro. The fast-growing challengers still have a long way to go to catch the incumbents, but their influence is changing the whole market.
The next big challenge is engaging a new audience, and it seems the time is right. A survey we ran in 2018 showed that only 22% of Brits owned stocks and shares and 49% had no plans to invest. In 2020, 33% said they owned shares and only 33% said they had no plans to invest. In the space of two years, we’ve seen the proportion of Brits who invest leap by 11 percentage points. This is likely to increase, but it will take work.
Our biggest competitor is not Hargreaves Lansdown, it’s the notion that you should not bother investing. It’s not understanding investing as a lifestyle choice.”
Total value of global stocks traded
|Year||Stocks traded, total value (current USD)||Stocks traded, total value (current GBP)|
London Stock Exchange (UK) trading: Market value
The London Stock Exchange (LSE) is the main stock exchange in the UK and the biggest in Europe. The total market value of companies trading on the London Stock Exchange fluctuates over time. Since 2015, the highest total market value of London Stock Exchange trading came in December 2016 at £4.58 trillion.
Following this, the London Stock Exchange has been falling in market value. In particular, the London Stock Exchange has taken a nosedive during 2020, due in most part to a mass selling of shares generated by the concerns surrounding the coronavirus pandemic. Since July 2019, the London Stock Exchange has seen a fall of £950 billion (-23.3%).
|Date||London Stock Exchange (UK) trading: Market value|
UK Foreign Direct Investment
Foreign Direct Investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. So how much money has been invested by the UK and into the UK?
- Inward FDI fell from £80.6 billion in 2017 to £49.4 billion in 2018.
- The USA accounted for the most FDI into the UK, contributing £39.5 billion (80%).
- Outward FDI totalled £6.3 billion in 2018, down from £99.5 billion in 2017.
- The UK’s highest overall investment was in the Netherlands (£5.4 billion) followed by Hong Kong (£3.9 billion).
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