Third of investors check their balance every day
More than a third (35 per cent) of investment app users check their balance every day, while nine per cent check their apps multiple times per day.
According to the Investing Reviews Annual Report 2023, investors aged between 35 and 44 are most likely to check their investments multiple times per day. This has led Investing Reviews to call for action against trading apps which encourage addictive behaviour and risky decisions.
“App creators have become experts at using users’ responses to encourage certain actions, but trading platforms are one place where consumers need to be protected from these design tricks,” said Simon Jones, chief executive of Investing Reviews.
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“The low barriers to entry in the saturated investment market means that users with little experience can quickly get encouraged to risk their hard-earned money on products and trades they don’t fully understand.”
A recent investigation by the Financial Conduct Authority (FCA) found that many trading platforms use design tricks such as offering points, badges and rewards to encourage investors into trading more frequently.
Investing Reviews warned that this could push retail investors to take greater risks with their money.
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“If you’re using trading apps for your investments, remember that you’re playing with real money, and don’t let yourself be manipulated by simple tricks like flashing lights and league tables,” added Jones.
“We call on the FCA to clamp down on the worst practices and provide solid guidelines so the industry can clean up its act.
“Platforms should be required to offer education on investing and trading to prevent inexperienced users from gambling with their life savings.”
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