More millennial investors want to manage their own money with do-it-yourself investing

TORONTO -

Millennial investors have jumped into the stock market in a big way over the past year with about two million new trading accounts being opened across the country.

A recent survey finds many of them feel they don't need the assistance of a financial advisor and plan to do their investing on their own.

“Canadians are no different then investors all around the world trying to find new ways to grow their money, especially since the start of the pandemic," said Nicole McKnight with Finder.com which conducted the survey.

The survey found about three million Canadians plan to stop working with a financial advisor this year and many who want to become do-it-yourself investors are between the ages of 24 and 40 years old.

The survey found 34 per cent of millennials plan to stop working with a financial advisor or are seriously considering it.

Another 54 per cent said they want to save money on fees, 42 per cent want more control over their money and 25 per cent feel knowledgeable about investing.

Andrew Kriegler, president of the Investment Industry Regulatory Organization of Canada (IIROC) said “we've seen a couple of million new do-it-yourself accounts opened over the course of the last year."

Kriegler said do-it-yourself investing can be a good strategy for some, but he cautions that investors should also be aware of the risks and be careful where they get their information from.

IIROC said investors need to develop a strategy and do their research. Some millennials have been investing in cryptocurrencies and stocks that have been promoted on the website Reddit.

“When you are looking at information that comes from, for example, social media, it's very difficult to tell whether that information has been checked, audited or has anything behind it or not or whether it’s somebody’s opinion," said Kriegler.

McKnight added, “I think it's important not to jump on a bandwagon, but really do a lot of research on a company before investing in it."

Kriegler said that while some investors are doing it themselves, others are using an advisor and many are doing a combination of the two.

Kriegler said it's important for younger generations to learn about money and investing, because many may not have a company pension plan so they will need to save for their retirement years.