GraniteShares ETP : More than one in four retail share traders have increased their level of trading to help ease cost of living pressures
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Will Rhind, Founder and CEO at GraniteShares ETP
- More than one in four say they are trading more in a bid to generate income
- Nearly half have switched money out of cash savings
Its study found that 27% of regular share traders say they are investing more and trading more as a way of earning extra money to help with rising bills with younger investors most likely to increase trading.
The nationwide study found over half (55%) of regular share traders aged under-35 have increased their level of trading in response to the cost of living crisis compared with just 13% of the over-45s questioned. The research though did show 7% of over-65s who trade regularly say they are trading more to help with the cost of living.
Most retail share traders are switching money from cash savings to fund their trading, the study shows. Around 44% say they are taking money out of savings while a third (32%) fund trading from their salaries.
But there are more worrying signs in the research for GraniteShares, which offers sophisticated UK investors a suite of index ETPs tracking FAANG stocks and a suite of Short and Leveraged Single Stock Daily ETPs tracking some of the most popular companies in UK markets.
Around 11% of regular share traders have used money from pension funds to buy shares in the past 12 months while have 7% have used their credit cards to trade shares and 7% have used cash set aside for big occasions or major purchases such as a wedding or a deposit for a house.
Will Rhind, Founder and CEO at GraniteShares said: “Retail share traders have generally made money in the past year so it makes sense that so many are increasing their trading to help ease cost of living pressures.
“With most share traders using money from cash savings or their salary it is clear they are being careful with their trading although there are some signs that people may be taking too much risk by using pension funds or borrowings to fund trading.
“Given the levels of volatility experienced in 2022, there are a growing number of sophisticated investors in the UK who see opportunities in the markets, which is reflected in the demand for products such as short and long ETPs which provide the flexibility needed to help navigate volatile market swings on both the long and short sides.”
Source: ETFWorld.co.uk
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