Market turbulence appears to be sparking a wave of opportunity for some investors, as interactive investor – one of the UK’s leading investment platforms – has reported its highest-ever trading volumes this week. Activity on the platform soared on Monday, suggesting that many customers are taking advantage of market dips to snap up shares they see as undervalued.
The surge in trades was triggered, in part, by renewed market jitters following tariff announcements by US President Donald Trump. Despite the nervous atmosphere, the buy side notably outweighed the sell side, highlighting what interactive investor says is a clear trend: investors are keeping calm and buying into the dip.
This record-breaking day follows a similarly busy trading session last Friday, with the previous third-highest trading day dating back to 9 November 2020, when Pfizer announced a major breakthrough with its Covid-19 vaccine. The platform said that the levels of investor interest in recent days have mirrored those from the first quarter of this year, underlining a steady confidence among its user base.
In a statement, interactive investor confirmed that stocks such as Rolls-Royce Holdings, Legal & General, Nvidia, and BP were among the most actively traded investments. The blend of both UK-based firms and major international players indicates that investors are seeking value across markets.
Richard Hunter, head of markets at interactive investor, explained the phenomenon:
“There is evidence that our customers are attempting to take advantage of market volatility by buying quality companies during the dip. It suggests a degree of confidence and an understanding of the long-term nature of investing, even amid short-term turbulence.”
This perspective was echoed by Myron Jobson, senior personal finance analyst at the platform. He said:
“Despite the market jitters sparked by Trump’s tariff threats, our customers have remained net buyers, with purchase levels broadly in line with those seen in the first quarter of the year. It suggests that many investors are looking past the short-term noise, viewing recent market weakness as a buying opportunity rather than a reason to retreat.”
Mr Jobson added that investor activity wasn’t confined to domestic equities. “Notably, customers have been snapping up both UK and US equities, illustrating a willingness to capitalise on perceived value at home and across the Atlantic,” he said.
He also highlighted the benefits of adopting a regular investment approach during periods of uncertainty:
“Regular contributions – sometimes referred to as pound-cost averaging – can help smooth out the highs and lows, making volatility less daunting.”
Pound-cost averaging is a popular strategy that involves investing a fixed amount regularly, regardless of market performance. Over time, this can reduce the impact of market swings and remove the pressure of trying to time the market perfectly.
While some investors may be rattled by the global political backdrop and market volatility, the current activity on platforms like interactive investor shows that a large segment remains steadfast in their long-term approach. By continuing to invest and identify opportunities in quality firms, they’re positioning themselves for potential growth when markets recover.
With inflation, interest rate decisions, and global political events continuing to influence sentiment, the next few months could bring further volatility. Yet, if recent behaviour is any indication, many investors are more than willing to ride the waves – and even profit from them.
As Jobson put it: “In the world of investing, volatility is often a feature, not a flaw. For those with a level head and a long-term view, it can present more of an opportunity than a threat.”