Competition to attract retail investors is intensifying as the government launches a campaign to encourage direct share ownership. AJ Bell reported a record 50,000 new customers in the second quarter, bringing its total client base to 723,000. The firm now manages nearly £109 billion on behalf of investors.
Record Growth for Low-Cost Platforms
Chief Executive Michael Summersgill attributed the surge to “the value placed on our low‑cost propositions, ease of use and trusted brand.” The announcement coincided with the government’s advertising blitz, which began on Thursday, aimed at persuading savers to move from cash ISAs to equities, such as stocks and shares ISAs.
Research from Boring Money reveals there are now 18.4 million investors in the UK, drawn by low-cost platforms. Trading 212 leads among new investors due to zero admin and share dealing fees.
Third Wave of DIY Investors
Holly Mackay, CEO of Boring Money, commented: “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.”
Hargreaves Lansdown, the largest retail stockbroker, faced backlash over controversial fee changes that raised costs for some clients. Rival interactive investor, owned by Aberdeen, reported £3 billion in inflows for the three months to March, partly crediting Hargreaves’ changes with adverts stating: “And to a certain competitor who recently changed their fees, thank you.” Hargreaves countered that it had cut some fees.
Gender Gap Persists
Boring Money notes a widening gender gap: 11 million male investors versus 7.4 million women, a gap of 3.6 million, up from 3.3 million in 2025.
Government Campaign Aims for Long-Term Returns
The government’s campaign hopes to steer investors toward riskier assets for better long-term returns. Investment Association data shows £10,000 in a cash ISA a decade ago would be worth £8,400 after inflation, while the same amount in a global equity fund would be nearly £20,000.
“Savvy the Squirrel” is the mascot for ads running on TV, online, and billboards. Chris Cummings, CEO of the Investment Association, explained: “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, costing up to £10 million a year, are backed by major City names like Aviva and Schroders.
