Nine of 10 Canadians who use self-directed investing are happy with their experiences, says a TD survey.
And the number of investors who are managing at least part of their investments directly could double within the next 10 years. Of those who don’t currently do any self-directed investing, 34% say they would consider doing so in the future, joining the 27% of Canadians surveyed who already have self-directed accounts.
“Many self-directed investors tell us they like the flexibility and control of managing their investment decisions, as opposed to thinking it will get them better returns than working with a financial advisor,” says Calvin MacInnis, president of TD Direct Investing. “In fact, most self-directed investors say they have either consulted or still consult a financial advisor to help them.”
MacInnis notes that online brokerages need to continue to adapt to client needs. Just over half (54%) of the respondents using self-directed investing said there is a lack of information tailored to their specific needs, not enough educational content available on websites, or that websites are too complex and difficult to navigate.
“A growing number of our self-directed clients are looking for a suite of professional-level tools, analytics and resources, which are also intuitive and tailored to their unique needs, to help them stay on top of the markets,” says MacInnis.
MacInnis notes that Canadians surveyed overwhelmingly prefer to use a desktop or laptop computer for self-directed investing, with just 7% primarily using a smartphone. But MacInnis says that’s going to change in the future.
“Our survey found that younger Canadians – those aged between 18 and 34 – are significantly more likely than other age groups to use a smartphone for self-directed investing,” he says. “Couple that with the fact that a larger percentage of younger Canadians is already using self-directed investing or is considering opening an account, suggests that the smartphone is becoming a much more common way to access self-directed investments.”