News Release

Vancouver – 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 B.C. Securities Commission (BCSC).

The national survey of Canadian investors, conducted by Innovative Research Group, 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 per cent of Canadian investors have some DIY investments, while 64 per cent 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 per cent 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 per cent 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 per cent – 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 per cent of Canadians using the platform. TikTok is where 20 per cent 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 per cent of all Canadians report purchasing an investment they first learned about on social media within the last year, but that number climbs to 25 per cent for young men.

“While many investors still seek traditional advisory services, a notable number of Canadians are drawn to DIY investing for its autonomy, potential cost savings, and the pursuit of financial knowledge,” said Pamela McDonald, the BCSC’s Director, Communications & Education. “As we navigate an evolving investment landscape, understanding investors’ motivations will help us, as regulators, provide the resources and protections they need.”

The research is available on the BCSC’s investor education website.

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 B.C. adults (weighted to 1,000 for separate analysis), and 542 B.C. DIY investors (weighted to 500 for separate analysis.) Weighting ensures that 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.

About the B.C. Securities Commission (bcsc.bc.ca)

The B.C. Securities Commission, an independent provincial government agency, strives to make the investment market benefit the public. We set rules, monitor compliance by industry, take action against misconduct, and provide guidance to investors and industry. As guardians of B.C.’s investment market, we’re committed to maintaining a market that is honest, fair, competitive and dynamic, enabling British Columbians to thrive.  

Media Contact:
Elise Palmer
604-899-6830

Public inquiries:
604-899-6854 or 1-800-373-6393 (toll free)
inquiries@bcsc.bc.ca

Learn how to protect yourself and become a more informed investor at www.investright.org