New eToro research highlights stark differences between U.S. and UK retail investors
eToro study shows cultural gaps in US and UK investing
Recent research conducted by eToro in collaboration with Nasdaq has highlighted key differences between retail investors in the US and the UK, shedding light on varying motivations, behaviors, and openness regarding investing.
The study, part of eToro's latest Retail Investor Beat report, analyzed responses from 2,000 retail investors across both countries, revealing contrasting approaches to financial goals and investment habits.
Different investment goals: Independence vs. retirement
American retail investors prioritize financial independence and income growth, with 39% of Americans aiming for independence compared to 31% of their UK counterparts. Similarly, 37% of US investors cite generating additional income as a goal, compared to 31% in the UK. Conversely, UK investors overwhelmingly focus on funding retirement, with 42% identifying it as a primary goal, compared to just 32% of Americans.
Openness about investments: A cultural gap
The study also revealed striking differences in how openly investments are discussed. Americans are significantly more likely to talk about their portfolios, with over 40% breaking the taboo by sharing details with friends, family, and colleagues. UK investors, on the other hand, remain more reserved, with only 35% discussing investments with friends and 28% with extended family. Conversations with strangers are rare in both countries but slightly more common in the US (5%) than in the UK (2%).
Gaining knowledge: Americans take the lead
American investors demonstrate a proactive approach to financial education, with 23% having attended investment courses compared to just 15% of UK investors. Americans are also more inclined to study strategies of renowned investors (36% vs. 28%) and pay for investment tools (22% vs. 16%). On average, they spend 18 more minutes per week on research than their UK counterparts.
Trust in financial news sources
The study revealed differences in trusted sources of financial information. UK investors prefer financial institutions (53%) and specialized financial media (44%), while Americans are more likely to rely on personal networks such as friends and family (25%) and to incorporate AI tools into their strategies (17% vs. 13%).
Expert commentary
Brandon Tepper, Senior Vice President at Nasdaq, emphasized the importance of data transparency and education in empowering retail investors globally. Dan Moczulski, eToro’s UK Managing Director, noted that while the UK lags behind the US in openness and knowledge-sharing, educational tools and accessible platforms could help bridge this gap in the coming years.
This research highlights the evolving culture of retail investing in both countries, showcasing opportunities for growth through education and transparency.
Previously, eToro released research showing that younger generations of investors are far more likely than older ones to discuss their investments openly.
