Closing the European Gap in Investors
Investigating the Reasons for the Gap Between Europe and Other Regions in Investing Despite Increased Accessibility in The Modern Day
Investing’s Changing Landscape
The investing landscape has changed. A Federal Reserve official Financial Stability Report found that pre 2008, investing was dominated by global investment banks. In 2013 mobile-first, commission free models began rolling out and democratising access to investing and by 2020 many apps had become the go-to place for investing, especially amongst the younger generation.
The democratisation of stock market access is evident in the fact that in the U.S. 62% of adults own stocks. In contrast, the opportunity to invest isn’t gaining the same traction in Europe, where only 34% of adults invest in some financial products. Potential reasons for this are deeply rooted in cultural financial habits that favor saving over investing. Policymakers and organizations throughout Europe are clearly encouraging people to invest. However, these efforts might go unnoticed if it weren’t for the fact that the investment gateway is easily accessible on the home screen of one’s smartphone. Investment apps like XTB aim to bridge this gap by developing their portfolio to offer people access not only to global stock markets but also to local financial products like ISA
Why are Mobile Investing Apps Growing in Popularity?
To answer this question, we must recognize the increasing popularity of two interrelated factors: technology and investment products. These are more accessible than ever before. Investing is becoming a mainstream trend and an essential aspect of modern life, largely due to advancements in technology. Inflation is a universal challenge, and traditional methods of managing finances are no longer sufficient to secure one’s financial future.
The growing popularity of investment apps is for several reasons including the ease of access to stock markets these apps provide. Now anyone can pick up their phone and start investing.
In 2025 XTB observed the growing popularity of investing on the stock market, stating that amongst over 1.7 million their clients, trading in shares and ETFs surged by 118% year on year. In the EU markets, nearly 80% of new clients’ initial transactions involved shares, ETFs, or investment plans, highlighting their increasing popularity.
Championing Europe’s Investment Landscape
This leaves us with a question. If stocks and mobile models for investing are growing in popularity in other markets how can they grow in Europe too? The answer is awareness and education. A 2025 EFPA Financial Advisory Survey concluded that “…lack of knowledge is the most frequently cited barrier to investment, and better financial education is seen as the key solution.” XTB is already taking ownership of this issue, providing many educational resources on some of the identified key gaps in financial knowledge, ranging from risk, how to invest, diversification and assessing investment products. Perhaps as more companies follow suit, in line with policymakers and organisations promoting investing, the gap in investors between Europe and other regions like the U.S. will begin to close.
Investing involves the risk of losing money and may not be suitable for you.
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