Self-directed investors take advantage of market conditions

In contrast to recent ONS statistics which revealed private share ownership to be at an all time low - Barclays Stockbrokers, the UK's largest execution-only retail broker, has seen trading volumes in stocks and shares increase, along with a rise in the number of new accounts opened, over the past two years.

While the last two years have seen the most turbulent financial market conditions in living memory, total trades in stocks and shares in 2009 increased by over two thirds (68%), in comparison to 2008.  In addition, more than half (58%) of the deals placed in 2009 were purchases, a consistent ratio seen across the year.  Barclays Stockbrokers also saw a 20% increase in new trading accounts opened compared to 2008.

Paul Inkster, Head of Product, Barclays Stockbrokers, said: "While 2009 was undoubtedly a year of extreme market conditions, we have consistently seen our clients look to take advantage of this volatility.  Trading volumes have revealed a high level of confidence amongst our clients, in particular in their buying activity, as they have identified opportunities arising from weakness in the markets.

"Over the past two years, Barclays Stockbrokers has seen total assets held by clients in stocks and shares remain broadly unchanged, in comparison to a  drop of approximately 15% in the UK stock markets over the same period.  Furthermore, while we have seen little change (1% decrease) in the volume of trades placed through our certificated service, total assets by clients held over the same period (including cash, fixed income instruments such as Gilts and Bonds and funds) have increased by 10%.

Paul Inkster continued:  "We have also seen an increase in trading of non-traditional asset classes.  There has been extraordinary growth over the last five years in trading of CFDs and Financial Spread Trading and, more recently, investor interest has spread into margin FX trading.

"Increasing sophistication of clients and relatively easy access to information over the last few years have combined with investors' desire to diversify their portfolios away from traditional long-only UK equity portfolios and we expect this trend to continue."