How firms can win business from advice-seeking DIY investors

A growing number of younger, do-it-yourself investors are seeking financial advice from human advisors, according to the latest J.D. Power U.S. Investor Satisfaction Study. The findings suggest that while digital platforms remain popular, economic uncertainty is prompting many younger investors to seek professional guidance.

The study, which surveyed more than 11,000 investors, found that 27 percent of DIY investors expect to work with a financial advisor in the next 12 months.

The trend is particularly pronounced among Gen Y and Gen Z investors, 37 percent of whom expressed interest in advisory services. By comparison, only 21 percent of Gen X, Boomer, and Pre-Boomer investors indicated the same.

"For younger generations of investors who’ve been exposed to digital, human and hybrid forms of investment advice during the past several years, the decision to lean into DIY or advised channels is rarely ever an either/or scenario," Kapil Vora, senior director of wealth intelligence at JD Power, said in a statement Thursday. "Increasingly, investors are using several approaches, and many younger investors who would traditionally have fallen into the DIY category are actively looking to work with human advisors."

It's worth noting that JD Power conducted its study from January through December 2024, collecting responses from 7,876 advised investors and 3,723 DIY investors. The percentage of investors seeking advisory relationships have likely gone higher since then, Vora said, "given the economic shifts of the past several weeks."

Related reading: Investors losing faith as Trump recession fears roil markets

Traditional firms lag in attracting younger investors

Despite the rising demand for financial advice, traditional wealth management firms appear to be struggling to capture younger clients. According to the study, just 11 percent of investors under 40 are working with traditional firms. By contrast, fintech companies serve the largest share of younger investors at 42 percent, followed by banks at 26 percent and retirement or discount brokerage firms at 20 percent.

Ease of doing business also emerged as a key factor in investor satisfaction, ranking just behind trust, products and services, and advisor relationships.

"However, it is no longer enough to have a brand legacy or an array of products and services; a company must deliver value and make the experience easy for investors," Vora said.

Beyond delivering value and an easy experience, cost transparency might be a crucial factor in the war for self-directed investors' dollars. According to research from Cerulli, 46 percent of unadvised affluent investors cite cost transparency as the most difficult part of working with an advisor, while 28 percent say fees are too high.

However, once investors establish an advisory relationship, those concerns seem to largely fade over time – only 11 percent of advised clients feel costs are unclear, and just 12 percent believe fees are excessive. Those numbers, Cerulli said, suggest upfront discussions about pricing and services can help ease skepticism and convert self-directed investors into long-term clients over time​.

Beyond pricing concerns, 34 percent of unadvised investors sureyed by Cerulli worry that advisors are not recommending the best products, underscoring the need for transparency in investment selection.

Related reading: More DIY investors want an advisor in their corner

Investor satisfaction rankings

The study ranked wealth management firms based on investor satisfaction, with Raymond James earning the highest score among advised investors at 748 on a 1,000-point scale. US Bank and Edward Jones followed with scores of 738 and 734, respectively.

For DIY investors, Vanguard ranked highest with a score of 704, followed closely by Fidelity at 703 and T. Rowe Price at 691.

In its own recent 2025 Robo-Advisor Report, Morningstar ranked Vanguard Digital Advisor and Fidelity Go among the top digital investment platforms.

Vanguard earned the highest overall rating, standing out for its low costs, strong portfolio construction, and expanded financial planning tools, while also lowering its account minimum to $100. Fidelity Go was recognized for its competitive pricing, straightforward investment approach, and use of zero-expense-ratio funds, offering free management for accounts under $25,000 and access to advisor coaching for larger balances.