Almost four in five (78 per cent) UK-based wealth managers and independent financial advisers (IFAs) have seen an increase in the level of stocks and shares trading by their clients in the past two years, GraniteShares has revealed.

The firm's research found that just 3 per cent of wealth managers and IFAs have witnessed a decrease in the level of stocks and shares traded, while 19 per cent said there has been no change.

The study of 100 wealth managers and IFAs found that nearly all (97 per cent) think the stock market will become more volatile over the next 12 months, leading to 87 per cent expecting to see an increase in the level of trading by their clients.

Over a quarter (27 per cent) expect to see a dramatic increase, while almost one in 10 (9 per cent) believe trading levels will remain the same.

Over the next two years, all survey respondents predict a rise in the level of trading of stocks and shares.

More than two thirds (68 per cent) expect to see a 25 per cent to 50 per cent increase in the level of trading by their clients, while one in five (20 per cent) expect to see a 10 per cent to 25 per cent increase.

Furthermore, over one in 10 (11 per cent) said that trading will soar by 50 per cent and 75 per cent.

The research by the firm also showed increasing numbers of copy trading, a portfolio management strategy that allows traders to copy the positions taken by another trader directly.

More than two thirds (68 per cent) of wealth managers and IFAs said that between 5 per cent and 10 per cent of their clients copy trade, more than a quarter (26 per cent) said under 5 per cent of their clients replicate the trades of others, and 4 per cent said over 10 per cent of their client base have adopted this strategy.

Three out of five (63 per cent) wealth managers and IFAs said their clients started copy trading three to four years ago, while more than one in five (21 per cent) implemented this strategy four to five years ago.

GraniteShares founder and chief executive officer, Will Rhind, said: "Share trading is becoming increasingly attractive given the strong performances of markets around the world in general and the surge in many individual stocks, that offered huge opportunities to investors and traders.

"The switch to more trading by the clients of wealth managers and IFAs highlights that investors are taking a more active approach to managing their wealth and that is reflected in the demand we are seeing for our long and short ETPs, which are efficient instruments to get leveraged exposures for tactical trading and also portfolio hedging."

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