DIY Recovery: new broking accounts hit record high - 11.09.2009
Citywire
A record number of new execution-only accounts were opened in the second quarter of the year as investors emboldened by the market recovery sought to play the momentum.
The ComPeer quarterly update on trading activity within the wealth management sector showed that 240,376 new accounts were opened over the three months.
The report said: ‘The second quarter has shown the first indications of a recovery within the markets, represented by good performances from both wealth managers and execution only stockbrokers.
‘Trade activity has also been exceptional, most particularly through the cash markets where volumes for all UK retail stockbrokers increased by 15.6% quarter on quarter, making Q2 the most active quarter since Q1 2000 with over five million cash market trades.’
Volatility as well as growth has been a core driver of trade over the past year with CFD trading up from around two million trades in Q2 2008 to around 3.75 million.
Net purchases of overseas equity fell from 64% to around 50% between Q1 and Q2, while equity was stable at 50%.
Gilts purchases suffered the biggest fall from 85% to just above 50%, while fixed interest declined marginally but remained around historically high levels at just over 70%.