The fact that one of the most significant changes in British personal finance occurred covertly through app store downloads during the same years that the majority of people were too financially strapped to feel like investors at all is particularly ironic. The rate of inflation was high. Salaries were being eaten up by rent. The job market for recent graduates was difficult. In the midst of all of that, a generation of young adults in Britain began purchasing shares for free on their phones in quantities that would have seemed insignificant ten years ago.
According to research firm Boring Money, the DIY investment market in the UK now has £772 billion in assets under administration, up 19% in just the last 12 months. As of 2025, there were 13.4 million open DIY investment accounts in Britain, almost quadrupling the number from 3.6 million in 2016. In 2024, the number of retail trading app downloads in the UK increased by over 50% annually. These figures are not marginal. They describe a structural shift in who invests and how, primarily due to platforms that charge nothing for the standard transaction that used to cost between £4 and £12 each time.
| Detail | Information |
|---|---|
| Trend | Surge in zero-commission trading app usage among young British investors |
| UK DIY Investment Market Size | £772 billion assets under administration (2025) |
| DIY Investment Accounts | 13.4 million — up from 3.6 million in 2016 |
| Market Growth | 19% over twelve months (Boring Money research) |
| Retail Trading App Growth | Over 50% year-on-year increase in 2024 (FinTech Global) |
| Key Platforms | Trading 212, Freetrade, eToro, Revolut, Investa |
| FCA Finding | More than 1 in 5 UK adults under 35 now invest via zero-commission platforms |
| Cost Priority | 50%+ of investors cite low costs as the biggest factor when choosing a platform |
| Trust Brand Shift | Prioritising trusted brands fell from 71% to 38% in one year |
| Beginner Investor Split | 5% chose Hargreaves Lansdown vs. 40%+ chose Trading 212 (2025, Boring Money) |
| Academic Finding | Removing fees improves net performance by ~11% annually (UC Berkeley, 2023) |
| Reference Website | City AM – More Brits Eye Investing as Low-Cost Platforms Elbow Into the Market |
In mid-2025, the Financial Conduct Authority reported that over one-fifth of UK adults under 35 now use zero-commission platforms for their investments. Many of them are beginning with modest sums, such as £20, £50, or £100, which would not have been profitable under the previous fee structure. A £10 commission on a £50 trade is so harsh that it completely prevents people from participating in the market. The equation is altered when the commission is removed. Without having to return 20% of her initial investment to a brokerage before the stock has moved an inch, a 26-year-old Peckham resident with £80 in disposable income at the end of the month can now own a fractional share in a company she believes in.
One of the more striking aspects of this story is the move away from well-known brands. When selecting a platform a year ago, 71% of British investors stated that they gave priority to using reputable, well-known brands. That percentage has dropped to 38%. In 2025, more than 40% of novice investors went directly to Trading 212, while only 5% selected Hargreaves Lansdown, which has long been regarded as the standard for retail investing in the UK. That is not a footnote about generational preferences. That is a tale of market share. Acknowledging the issue, Hargreaves Lansdown has announced plans to release a more contemporary app. This is the kind of reaction that typically occurs after several years of witnessing younger customers leave.
The scholarly argument for zero-commission trading is more compelling than the headlines typically convey. Using data from eToro’s staggered international fee removal as a natural experiment, a 2023 study by Berkeley Haas discovered that eliminating commissions improved net annual performance by about 11% while also increasing trading frequency by about 30%. Portfolios became more diverse when trading was free, and the improvement was mostly due to fee savings rather than a decline in trade quality. At least in this dataset, the widely held belief that eliminating fees would promote careless trading and harm returns proved to be incorrect. Risk does not go away as a result. However, it undermines the claim that zero-commission platforms are mostly harmful.
However, the risk factor is real and should be taken seriously. According to the FCA’s data, news headlines or social media trends, rather than any thoughtful analysis, were responsible for a significant portion of trades on these platforms. Impulsive decisions are easy to make in an environment created by engagement-focused apps, such as those with notifications, real-time charts, and trending leaderboards. Independent analyst Ben Hallam reported witnessing “lots of trades, panic selling and following hype without proper research.” The platforms are aware of this as well, and some are making investments in learning resources. It’s another matter entirely whether those tools truly alter behavior on a large scale.
Additionally, there are structural constraints that are not always evident in zero-commission marketing. When Revolut first launched, its trading product only included US stocks listed on the NYSE and Nasdaq; it did not include index funds, investment trusts, or access to the passive vehicles that the majority of financial advisors would consider fundamental. Every time a British investor purchases US shares, they are subject to FX fees, which normally range from 0.5 to 1 percent per transaction and compound significantly over time. Not all platforms offer ISA access, which is crucial for tax efficiency in the UK, particularly now that the capital gains tax allowance has been reduced to just £3,000. Investors who overlook these important details will ultimately pay the price.
As this market develops, it seems that young British investors are not primarily motivated by the desire to make quick money. It involves doing something, anything, with savings that would otherwise remain in a current account and earn very little while their value is gradually diminished by inflation. It’s a logical impulse. The industry is still debating whether the platforms that make it possible are sufficiently designed to provide the long-term results these investors require.
