Over a third of retail traders in the UK have said they would be more likely to listen to the advice of ‘finfluencers’ than members of their friends and family, new research has revealed.
Half of retail investors surveyed by CMC Markets admitted they would jump on a trading opportunity highlighted by a financial influencer, while family and friends were the second most used source of information.
While a large majority of retail traders (69 per cent) started trading within the last few years, a quarter said they already get more than 20 per cent of their income from trading.
Traders are also much more focused on the US than expected, following companies like Amazon, Netflix and Apple over British companies, with 45 per cent trading most around US markets open and close.
While FTSE 100 companies are still of great interest to 34 per cent of traders, 54 per cent of the wealthiest group of retail traders were more interested in Nasdaq 100 companies than any other market.
Retail traders are also excited about AI, with 59 per cent stating they are likely to try out AI trading tools.
“Retail trading has taken a very different shape to where it was five years ago. The pandemic opened the door to a whole new demographic of traders,” said Jochen Stanzl, chief market analyst at CMC Markets.
“Today, as the data shows, retail trading is so much more than a hobby. And most traders are taking advantage of a highly volatile market, following economic calendars to inform their strategy, and managing their emotions well to mitigate risk.
“For 2024, we found that shorting IPOs will be a priority, as will closely monitoring interest rate changes and major US companies during earnings season. With AI around the corner, retail trading is set to transform even further.”