Convenience, control, and lower costs are among the main reasons why some investors choose to manage their own investment portfolios instead of working with a financial advisor, according to new research from the BC Securities Commission (BCSC).
The national survey of Canadian investors was commissioned to better understand the attitudes, behaviours, and trends of do-it-yourself (DIY) investors, also known as self-directed or self-managed investing.
The study focused on how DIY investors differ from those who work with advisors, how they research investment opportunities, and the influence and role of social media in their decision-making. While DIY investing is growing gradually, the findings show that it’s catching on faster with younger and newer investors.
Forty-three percent of Canadian investors have some DIY investments, while 64% have an advisor. Of those who have an advisor, about a third also self-manage some of their investments.
DIY investors are diverse in their reasons for investing and how engaged they are in managing their own portfolios.
- While 77% of all investors say their main investment goals are long-term savings or retirement, DIY investors are more likely to say they also invest for other reasons like generating additional income, the chance of receiving a very large return, or just to have fun.
- Thirty-three percent of DIY investors cited having more control over their investments as the most important reason for managing some or all of their investments themselves.
- DIY investors tend to have less trust overall in media, government, and financial institutions.
- Those who choose not to work with advisors cite concerns about the value of the advice they provide, costs, and a desire to bear personal responsibility for any losses they may incur.
- Other key reasons for managing their own investments include convenience and gaining more financial literacy.
Most Canadian investors (67%) still look first to advisors or financial institutions like banks for information on investing, followed by family and friends, online sources, and social media. When it comes to social media, YouTube is the most popular source of financial information overall with 10% of Canadians using the platform. TikTok is where 20% of 18- to 24-year-olds say they turn to first to help them make decisions about money.
DIY investors are more likely than those using financial advisors to turn to social media for information and are generally more trusting of what they find there. Ten percent of all Canadians report purchasing an investment they first learned about on social media within the last year, but that number climbs to 25% for young men.
The full research is available here.
About the Research
This online survey was conducted for the BCSC by Innovative research Group among a representative sample of Canadians and British Columbians from March 12 to March 23, 2024. A total of 4,272 Canadians aged 18 and over completed the survey, which was weighted to a balanced sample of 2,500 nationally. The survey included a national oversample of 1,579 DIY investors (weighted to 1,500 for separate analysis), 1,446 BC adults (weighted to 1,000 for separate analysis), and 542 BC DIY investors (weighted to 500 for separate analysis.) Weighting ensures the overall sample’s composition reflects the actual age, gender, education, and region of the Canadian population according to census data, and their investable assets according to data from the Statistics Canada Survey of Financial Security.
Report a Concern
If you have any concerns about a person or company offering an investment opportunity, please contact the BCSC Contact Centre at 604-899-6854 or 1-800-373-6393, or through email at [email protected]. You can also file a complaint or submit a tip using the BCSC’s online complaint form.
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