Freetrade has seen a significant rise in ISA subscriptions with a 244% surge year-on-year.
The average age of ISA holders is 34. In comparison the average Freetrade customers is 31.
Yet, 38% of those with an active ISA are aged 25 and under. They have on average contributed £860.
This contradicts the stereotype that younger investors are impulsive and adverse to long-term investing.
Freetrade analysis from May 2021 challenged the popular assumptions about the “new wave” of retail investors that has emerged during the pandemic.
It found that 81% of new investors had turned investing into something they do “at least once every few months”.
Yet only 14% reported doing it every week. That suggests it has become a healthy, regular habit and that fears of “overtrading” are overstated.
Almost half (45%) are investing monthly, with many factoring it into their monthly budgeting.
These findings contrast with those from Platforum that suggest Covid-19 is creating a perfect storm for retail investors.
Freetrade CEO Adam Dodds said: “The evidence continues to refute the idea of investing as a ‘lockdown fad.
“Our recent research showed that new investors, rather than simply being bored during lockdown or looking to make a quick buck, have become genuinely interested in investing and planned to make it a regular habit, even after we emerged from the pandemic.
“The interest in long-term vehicles and significant amounts already committed support that.”
Younger ISA subscribers are the keenest on ETFs. Eight of the top 20 investments among 18-25s are trackers, compared to four of the top 20 among those aged 66 and over.
American growth stocks continue to be favoured, with Amazon, Tesla and Apple popular across the board.
“Meme stocks” such as Gamestop and AMC Entertainment feature across all age groups, not just the young, inexperienced investors as it is often assumed.
Both stocks feature in the top 10 across all age brackets. Gamestop was the fourth most popular pick within the 55-65 and 66+ age groups.
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