Investment Brokers Growing in the UK

Trading has never been as popular as it is today and investment brokers in the UK are thriving. The number of new customers is higher than ever, and brokers registered in the UK are reporting higher revenue and profits on a regular basis.

But why is that? And is the market facing any potential risks?

The Market is More Accessible Than Ever Before

In order to grasp how investment brokers in the UK are constantly growing, you need to understand how today’s market differs from the past.

Before the Internet, anyone that wanted to trade had to do so through a physical broker that usually worked on a trading floor connected to an exchange. Most investments were placed over the phone, and it was a rather limiting system that only very dedicated investors made use of.

Then the Internet came around and everything changed.

Investment brokers happened to be some of the earliest adopters of the Internet, and by bringing their services online, brokers could reach a much broader customer base.

Since then, trading platforms in the UK have continuously developed, and they get better and better for each year. Naturally, these developments are making the brokers more accessible for their customers.

Our point is that brokers are working hard to make investing easier in order to reach more customers. Some are even expecting to see a huge boom in new investors as the highly tech-savvy generation Z becomes old enough to invest.

Stricter Regulation Means Safer Investments

A factor that many seem to overlook is regulation.

Today every serious investment and trading broker in the UK is under strict supervision from the Financial Conduct Authority (FCA). If any of the FCA’s rules are broken, the broker runs the risk of losing their license which would be devastating.

At first glance stricter rules might seem like something that would make the market less attractive, but the opposite has proven to be true. To understand how this works you need to stand in the shoes of a new investor.

One of the main reasons why people interested in investing avoid opening an investment account is the potential risk.

However, when brokers become safer and more transparent due to stricter regulation, potential customers become more willing to use their services.

In other words, stricter regulation attracts more customers which allows investment brokers in the UK to grow.

A Stronger Economy Creates Opportunities

Lastly, we are currently in a time period where the average person has more money to spend than ever before. And due to the possibility of making a profit, investments are one of the most exciting ways for people to spend their money.

One Potential Risk That Could Stop the Growth

Even though most of the leading investment brokers in the UK are growing at rapid speeds, there are some risks that could hurt the market.

At the moment, the most obvious risk that the investment industry in the UK is facing is Brexit. As a matter of fact, a large portion of the UK’s financial institutes have already started moving parts of their business elsewhere in Europe in order to avoid getting hurt by Brexit.

So far we don’t actually know what the financial sector in the UK will look like after Brexit, but the general consensus among brokers seems to be “rather safe than sorry.”

Then again, Brexit could also result in a much better market for UK traders, only time will tell.