A new study by eToro, in collaboration with Nasdaq, reveals fascinating contrasts between US and UK retail investors. The survey, which included 2,000 retail investors (1,000 from each country), uncovers their habits, motivations, and attitudes toward investment education and research.
Key Highlights of the Study
Cultural Differences in Retail Investing
US and UK retail investors approach investing differently, particularly in their willingness to share knowledge and discuss portfolios.
- US investors are more open and proactive, discussing investments with friends, family, and even colleagues.
- UK investors, while warming up to retail investing, are less likely to engage in conversations about financial strategies in social circles.
Dan Moczulski, eToro UK’s Managing Director, commented:
“Investing is becoming a more common topic in the UK, but it still lags behind the US in openness and willingness to share knowledge. With the right education tools and investment platforms, we expect this gap to close in the future.”
Investment Goals: Financial Independence vs. Retirement
The survey highlighted divergent priorities for investors:
- US Investors:
- 39% aim for financial independence (vs. 31% in the UK).
- 37% seek to supplement their income (vs. 31% in the UK).
- UK Investors:
- 42% prioritize retirement savings, compared to 32% of US investors.
Openness in Discussing Investments
US investors are far more comfortable talking about investments than their UK counterparts:
- 41% of US investors discuss their portfolios with friends, compared to 35% in the UK.
- US investors are also more likely to talk with family (37% vs. 28%) and colleagues (21% vs. 18%).
Investment Education and Research
When it comes to improving financial knowledge, US investors lead the way:
- 23% of US investors have taken an investment course (vs. 15% in the UK).
- US investors dedicate 2 hours and 42 minutes weekly to research, compared to 2 hours and 24 minutes for UK investors.
- 36% of US investors study the strategies of well-known investors (vs. 28% in the UK).
Trusted Sources of Financial News
The survey revealed differences in trust across sources:
- UK Investors:
- 53% trust financial institutions, compared to 48% of US investors.
- 44% trust specialist media (vs. 36% in the US).
- US Investors:
- 17% rely on AI tools for investment research (vs. 13% in the UK).
- They are more likely to trust friends and family (25% vs. 19% in the UK).
What This Means for Retail Investors
The findings highlight the growing interest in retail investing across both nations, with the US taking the lead in education and proactive investing. UK investors are catching up, but cultural and systemic differences shape their behavior.
As financial platforms like eToro continue to innovate—integrating tools like AI-driven insights and social trading features—the gap between these markets is expected to narrow.