Online investors in it for the long haul
The vast majority (85 percent) of online investors are using their online investing accounts for either long-term goals or a combination of long-term and short-term ones, according to the latest RBC Direct Investing poll. Contrary to popular perception that many online investors are looking for quick financial gains, just nine percent of Canadian online investors are seeking short-term profit through their online investing accounts.
"Our study confirms the trend we identified last fall: online investors are looking for more than just a quick buck," said Michael MacDonald, vice-president, Strategy, RBC Direct Investing. "This is why we introduced a goal-setting tool to help investors define their short and long-term goals and chart their progress toward achieving those goals."
The majority (73 percent) of online investors have been investing for longer than three years and of these, 92 percent are 36 years of age and older. The remaining 27 percent have been investing for three years or less, with just over one-third (35 percent) of these being 18 to 35 year olds.
The key challenges identified by those who are newer to online investing include:
not confident investing on their own (44 percent)
little time to manage investments (40 percent)
inadequate knowledge to manage investments on their own (38 percent).
The poll also found that more than four out of five (84 percent) of those newer to online investing use their online brokerage to gain investment knowledge. RBC Direct Investing has set up its website specifically to help online investors ramp up their knowledge.
"Those who are newer to online investing don't have to 'go it alone', particularly with the online tools and resources now available," added MacDonald. "Our Rep-Assisted screen-sharing gives clients a one-on-one phone guidance session; our Practice Accounts offer a no-risk way to test investing strategies. Convenience and ease of use continue to be at the heart of everything we make available to our online investors."