Internet share traders are regaining confidence in the stock market, with online stockbrokers seeing a rise of close to 50% in business over the last quarter, and the number of people dealing on the internet reaching a record high.

In its quarterly report on the share dealing market, market research group ComPeer said that private investors are reversing a 15-month slide in share trading volumes between April and June this year.

The number of those dealing online rose to a record 395,000 in this period, while online business overall was up 42%.

"There is a growing optimism in the market, while the need to invest for the future becomes ever more important for investors," said, Mark Powell, chairman of the Association of Private Client Investment Managers and Stockbrokers.

Online trading accounted for more than a third of all execution-only trades (trades without advice) while the total value of shares traded online rose by just over 20%.