The popularity of trading in the UK has dropped significantly since COVID-19 and continues to show no signs of recovering.
Trading-related searches are down 62% compared to the peak in 2021. There are some growth areas though bucking the trend from AI trading to futures trading as the data shows below. Justin Grossbard from Spread-Bet.co.uk explained:
“The decline in trading interest in the UK has led to fewer people opening up new accounts. While the industry continues to grow, this is due to existing traders increasing their volume compared to new traders entering the market”
Search Interests By Trading Category
Search volumes have fluctuated significantly since 2020 due to COVID and external factors from elections, economic shifts and market-based volatility.
Since 2020 we have seen the following trends.
AI Trading Has Increased By 350%
It’s no surprise that the hype around AI has translated to trading with the ability to integrate programs into automated trading environments. In fact, the interest in AI trading is now more than half that of general share trading and continues to grow at the fastest pace.
Share Trading Interest Has Had It’s Weakest Quarter
Q3 2024 saw half the interest in trading shares since COVID. While historically Q3 has the lowest interest levels due to the summer holidays, the trend has been downward since 2020 when the introduction of commission-free brokers entered the market making it easier to invest small amounts on the stock market.
CFD Trading Has Shrunk The Most -74%
Interest in Contracts for Difference (CFDs) has seen the sharpest fall in interest within the UK. This may be due to the shift to other forms of trading (eg. Futures trading) and restrictions placed by the FCA such as the banning of Crypto CFD trading.
Interest In Futures Trading Has Grown 45%
The futures market has seen the biggest surge in search popularity within the UK due to factors such as the US election, improvements in trading platforms and the rise of algorithmic trading. This is the biggest bright stop in a shrinking UK market.
Spread Betting And Forex Trading Interest Has Halved
Forex trading which had the most interest back in 2020 has seen a 49% drop in searches while the niche topic of Spread Betting is down 52%. Like CFD trading, regulation had some impact on this area of trading with restrictions placed on UK retail traders but general interest has waned in the vertical.
UK Broker Interest Trends
Search volumes for spread betting brokers have experienced significant changes between 2020 and 2024, driven by global events and market shifts. This period saw a significant rise in interest in sports spread betting, forex spread betting, and financial spread betting as traders adapted to economic uncertainty and market volatility.
The graph below shows the average monthly search volume for each type of broker, while the general “spread betting” search trends on the right highlight fluctuations in overall interest.
- Sports spread betting brokers saw a 37.5% increase in search volume during major sports events.
- Forex spread betting broker searches surged by 108% during early pandemic-driven currency volatility.
- Financial spread betting brokers experienced a 125% rise in searches during 2020-2021 as traders sought alternatives to traditional markets.
The search volume for spread betting surged by 125% in early 2021, as retail traders turned to this flexible trading option to capitalise on market volatility caused by the COVID-19 pandemic. While searches stabilised from mid-2022 onwards, spread betting remains a popular strategy during times of economic uncertainty.
Financial spread betting experienced a similar spike, with a 125% increase in searches from December 2020 to January 2021. Traders used financial spread betting to speculate on assets like forex, commodities, indices, shares, and crypto as the pandemic disrupted global markets.
Forex spread betting saw a 108% rise in search volume between September 2020 and January 2021. The volatility in currency markets, driven by economic uncertainty and central bank interventions, made forex spread betting an attractive way to profit from short-term currency fluctuations. However, by August 2022, searches had dropped 40% as currency markets stabilised. Despite this, forex spread betting continues to appeal to traders due to its tax advantages.
Sports spread betting consistently led the way in search volumes, rising by 37.5% between October 2020 and January 2021. Major sporting events like the UEFA Euro 2020 and FIFA World Cup 2022 triggered spikes in interest, as traders bet on match outcomes. Unlike financial and forex spread betting, which are influenced by market conditions, sports spread betting is driven by events, maintaining strong search interest throughout the year.
Across the spread betting industry, each type of betting saw varying levels of interest from 2020 to 2024. Sports spread betting remained the most searched, while forex and financial spread betting experienced spikes during periods of market volatility.
Overall, the steady search volume for general spread betting reflects its continued importance as a trading strategy, especially in times of economic uncertainty.