Almost four in five (78%) UK-based wealth managers and independent financial advisers (IFAs) have seen an increase in the level of stocks and shares trading by their clients in the past two years, GraniteShares has revealed.

The firm's research found that just 3% of wealth managers and IFAs have witnessed a decrease in the level of stocks and shares traded, while 19% said there has been no change.

The study of 100 wealth managers and IFAs found that nearly all (97%) think the stock market will become more volatile over the next 12 months, leading to 87% expecting to see an increase in the level of trading by their clients.

Over a quarter (27%) expect to see a dramatic increase, while almost one in 10 (9%) believe trading levels will remain the same.

Over the next two years, all survey respondents predict a rise in the level of trading of stocks and shares.

More than two thirds (68%) expect to see a 25% to 50% increase in the level of trading by their clients, while one in five (20%) expect to see a 10% to 25% increase.

Furthermore, over one in 10 (11%) said that trading will soar by 50% and 75%.

The research by the firm also showed increasing numbers of copy trading, a portfolio management strategy that allows traders to copy the positions taken by another trader directly.

More than two thirds (68%) of wealth managers and IFAs saidthat between 5% and 10% of their clients copy trade, more than a quarter (26%) said under 5% of their clients replicate the trades of others, and 4% said over 10% of their client base have adopted this strategy.

Three out of five (63%) wealth managers and IFAs said their clients started copy trading three to four years ago, while more than one in five (21%) implemented this strategy four to five years ago.

Founder and chief executive officer at GraniteShares, Will Rhind, said: "Share trading is becoming increasingly attractive given the strong performances of markets around the world in general and the surge in many individual stocks, that offered huge opportunities to investors and traders.

"The switch to more trading by the clients of wealth managers and IFAs highlights that investors are taking a more active approach to managing their wealth and that is reflected in the demand we are seeing for our long and short ETPs, which are efficient instruments to get leveraged exposures for tactical trading and also portfolio hedging."

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