TORONTO, Oct. 01, 2024 (GLOBE NEWSWIRE) -- Today, FAIR Canada released new research challenging some common assumptions about the growing, dynamic world of do-it-yourself (DIY) investors. Forty-five percent of Canadian investors now have some DIY investments. The findings reveal that DIY-Only investors have less risk tolerance and confidence, and are less likely to use the tools on their DIY platform than ‘Hybrid’ investors who also work with an advisor.
FAIR Canada commissioned the research to deepen our understanding of the attitudes and behaviours of DIY-Only investors, who are exclusively self-managed, and Hybrid investors. Of the 1,350 Canadian investors surveyed, 46% were DIY-Only investors and 54% were Hybrid.
“These fresh insights could reshape our understanding and support of individual investors,” says Jean-Paul Bureaud, FAIR Canada’s Executive Director. “The rise in DIY investing reinforces the need for regulators to help all investors make informed decisions with clear, transparent information and to ensure fairness in the investing landscape.”
DIY-Only Investors Versus Hybrid Investors
FAIR Canada’s findings cite that Hybrid investors (72%) are more likely to indicate they are confident about investing than DIY-Only investors (61%).
They are more likely to report that they commonly make risky investments (34%) than DIY-Only investors (28%). Men and younger DIY investors are also more likely to say they commonly make risky investments.
Hybrid investors are twice as likely to apply to trade options, futures, or over-the-counter derivatives (28% versus 15% for DIY-Only investors), and to use credit or margin to finance their investments (21% versus 11% for DIY-Only investors). They are also more inclined to diversify their DIY portfolios, exhibit greater confidence in their investment decisions and engage in higher-risk investments.
Only 16% of Hybrid investors report not using any of the tools on their online platforms, compared with double the proportion (33%) of DIY-Only investors who report the same.
DIY-Only investors are more likely to rely on financial statements (44%) than Hybrid investors (35%). They are also more likely to rely on media and family and friends.
Almost four-in-10 DIY-Only investors and three-in-10 Hybrid investors do not trust investment advisors. Overall, DIY-Only investors (43%) are less likely than Hybrid investors (52%) to agree the investing process is fair to the average investor.
Implications for Policy and Support
“The report underscores the need to review how we regulate DIY platforms and consider whether they could offer some advisor-like features to help DIY investors make better choices,” said Mr. Bureaud. “Regulators are now looking at how DIY platforms can be improved to offer non-tailored advice to investors. FAIR Canada looks forward to contributing to the evolution of the regulatory framework for DIY investors.”
The full report, Understanding Do-It-Yourself Account Holders, is available on FAIRCanada.ca.
About the Research
The Strategic Counsel conducted this online survey for FAIR Canada with 1,350 DIY investors proportionate to the population across Canada. Surveying occurred from February 20, 2024 to March 4, 2024, and May 27, 2024 to June 17, 2024. The sample size for DIY-Only investors was 615 with a precision level of 4.9%. The sample size of Hybrid investors was 735 with a precision level of 3.6%. ‘Precision level’ refers to how accurately the survey results represent the true characteristics of the entire population.
About FAIR Canada
FAIR Canada champions the rights of individual investors in Canada through advocacy, education, and regulatory advancements. We are the trusted, independent voice on significant issues that affect individual investors. As Canada’s only non-profit, investor-focused organization, we provide informed, objective comments on regulatory matters that have an impact on investor fairness and protection. Learn more about investor rights at FAIRCanada.ca and connect with us on X (formerly Twitter) and LinkedIn.
For further information contact:
Jean-Paul Bureaud
Executive Director, FAIR Canada
JP.Bureaud@FAIRCanada.ca
Teresa Pagnutti
Public/Media Relations Lead
Teresa.Pagnutti@FAIRcanada.ca
416-230-0172
