Best Investment Apps UK 2023

Looking for your perfect investment app?

I’ve tested, scored, and ranked the best investment apps in the UK.

Using your phone to invest gives you the power to tap into global markets seamlessly on the go.

Whether you’re a beginner or an experienced investor, I’ve got you covered.

So, in a nutshell, what are the best investment apps in the UK? The best investment apps in the UK include eToro, known for its social trading environment and a wide range of instruments. InvestEngine is recognised for its automated, low-cost ETF investing, making it ideal for passive investors. Meanwhile, Plus500 offers a straightforward CFD platform with zero commission, appealing to those new to investing.

Top UK Investment Apps Ranked

Here is a quick list of the best investment apps to use in the UK based on my hands-on analysis:

1. eToro – Overall best investment app UK for beginners
2. InvestEngine – Best investment app for ETFs
3. Plus500 – Best investment trading app for CFDs
4. Freetrade – Best investing app for free share upon signup
5. Nutmeg – Best robo-adviser investment app
6. Moneybox – Best investment app with ’round-up’ tool
7. interactive investor – Best investment app for a large portfolio of assets
8. AJ Bell – Best investment app for active traders & investors
9. Hargreaves Lansdown – Best investing app for selection of funds
10. IG – Versatile UK investment app for smart portfolios

Best Investment Apps UK Compared for Investors

Here I’ve compared the investment apps based on four key rating criteria you must consider and compare:

Rank	Investment app	Type	Minimum deposit	Trading fees	Types of investments	ISAs
1	eToro	Investment platform	£7.50	£0	Stocks, indices, ETFs, currencies, commodities, crypto	Yes, with Moneyfarm
2	InvestEngine	Investment (ETF) platform	£100	£0 (DIY) 0.25% (Managed)	Investment funds	Yes
3	Plus500	Trading platform	£100	Fees are built into the spread	Forex, commodities, indices, options, stocks, ETFs	No
4	Freetrade	Trading app	£0	£0	Stocks, ETFs, investment trusts, REITs, SPACs, IPOs	Yes
5	Nutmeg	Robo advisor	£100	0.25% – 0.75%	Investment funds	Yes
6	Moneybox	Robo advisor	£1	£0	Investment funds	Yes
7	interactive investor	Investment platform	£0	£3.99	Stocks, funds, trusts, warrants, ETFs	Yes
9	AJ Bell	Investment platform	£500	£1.50 – £9.95	Stocks, funds, trusts, bonds, ETFs	Yes
9	Hargreaves Lansdown	Investment platform	£100	£11.95	Stocks, funds, trusts, ETFs	Yes
10	IG	Investment platform	£250	0.50% (Managed)	Real stocks & ETFs, exchange-traded securities, CFDs (currency pairs, stock indices, stocks, ETFs, commodities, crypto, bonds, and futures)	Yes

Best Investment Apps UK Reviews

Research shows that the rise in the use of investment apps in the UK has been significant over the last few years, with estimated downloads reaching around 7.1 million or 13% of the adult population¹.

It’s easy to understand why. Who wouldn’t want to have the ability to work towards financial freedom and invest in stocks and shares on the go?

Having worked in the retail investment sector in the financial heartbeat of the UK (London) over the last four years, I had the opportunity to experience the rise first-hand.

Additionally, in my role working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”, I was able to work with and test some of the biggest investing apps and platforms on the market.

Using my experience in this field, I’ve compiled a list of the best investment apps in the UK based on four key criteria:

1. Minimum deposit
2. Trading fees
3. Types of investments
4. ISA availability

Factors such as usability, education materials, and additional features were also considered.

All the investing apps I’ve reviewed below are available on Android and iOS, and more importantly, regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA).

1. eToro – Overall best investment app UK for beginners

The overall winner on my list of the best investment apps and what I recommend to beginners is eToro.

eToro offers an exciting way to invest, with its copy trading, zero commissions, and vibrant social trading community.

A major advantage is the ability to copy trades from seasoned investors in real time.

This makes it perfect for beginners, as you can learn the ropes of investing by copying from professionals.

In addition, eToro boasts a wide range of assets, including stocks, indices, commodities, cryptocurrencies, and more.

For long-term investors, eToro’s Smart Portfolios are top-notch. There are 65 investment portfolios curated by eToro analysts spanning a range of market themes, trends, and industries available to invest in.

A brand new feature they’ve just launched is that you can now earn up to 5.3% interest on unused balances in the platform, pretty cool!

Overall, the platform’s user-friendly design and safety features make it a secure and reliable place to invest. eToro is a great investment app for those looking to benefit from copy trading and its low fees.

Key rating criteria:

Type	Minimum deposit	Trading fees	Types of investments	ISAs
Investment platform	£10	£0	Stocks, indices, ETFs, CFDs, currencies, commodities, crypto	Yes, with Moneyfarm

Other fees: $5 withdrawal fee, $10 inactivity fee, currency conversion fees.

Read my full eToro review.

Pros:

• Commission-free trading for stocks and ETFs
• Smooth and straightforward account setup process
• Access to social trading features

Cons:

• $5 charge for withdrawals
• Limited to a single account currency option

2. InvestEngine – Best investment app for ETFs

I recommend InvestEngine as the best investment app if you plan to invest in ETFs.

ETFs allow you to invest across a whole market with ease and speed in just one transaction by mirroring the performance of a given index.

• Using an investment app to invest in ETFs will offer you the following:
• Diversify your investments across hundreds of individual shares or bonds
• Choose to invest globally, across specific regions, or in individual stock markets
• Access supported bonds, commodities, and categories such as ESG or tech
• Low cost of investing, zero stamp duty, and easily bought and sold on the stock market

With InvestEngine, you can easily take charge of your investing and get the most out of your money – no matter your experience level.

InvestEngine offers DIY and managed ETFs, with no fee for DIY portfolios and a 0.25% fee for managed portfolios.

You can also build your own portfolios, using a variety of stocks, funds, and ETFs (580+ ETFs).

InvestEngine’s user-friendly platform is designed for new and experienced investors alike, and it offers helpful features such as portfolio analysis and automated portfolio rebalancing.

Plus, InvestEngine has a handy mobile app so you can check your investments on the go.

If you’re looking for an affordable, convenient, and overall best way to invest in ETFs, InvestEngine is a top pick.

By signing up via my link, you will receive a Welcome Bonus of up to £50 when you invest your first £100 (Ts&Cs apply).

Key rating criteria:

Type	Minimum deposit	Trading fees	Types of investments	ISAs
Investment (ETF) platform	£100	£0 (DIY) 0.25% (Managed)	Investment funds	Yes

Read my full InvestEngine review.

Pros:

• Extensive selection of ETFs (580+)
• User-friendly interface
• Low-cost managed option with a 0.25% fee
• Excellent customer support
• Ability to invest within a business account

Cons:

• Limited investment options, only ETFs

3. Plus500 – Best investment trading app for CFDs

Plus500 is a noteworthy investment app in the UK, especially for those interested in CFD trading, offering a user-friendly proprietary trading platform.

It features an extensive range of financial products, including over 2,800 CFD contracts, shares, commodities, and options. The platform is known for its commission-free trading and offers a free lifetime demo account.

Plus500 is regulated, publicly traded, and provides the Insights trading tool for informed decision-making.

Targeted primarily at active CFD traders, Plus500 is appreciated for its competitive pricing and excellent customer support.

Long-term investors seeking advanced features may find it less suitable. With its strong regulatory standing and a focus on customer service, Plus500 ensures security and reliability.

However, its concentration on CFDs and inactivity fees might not cater to all trading preferences. Traders should consider their trading goals and risk appetite before choosing Plus500.

Plus500 is a prominent CFD provider, offering fast order execution and advanced technical features, with no crypto products. It supports a wide range of payment methods and is known for rapid withdrawal times.

With over 110 trading indicators and an array of risk management tools, Plus500 is suitable for traders seeking a broad range of financial markets and low spreads.

It provides negative balance protection but lacks integration with other trading platforms and has limited customer support.

Ideal for beginner to intermediate traders, Plus500 offers an easy-to-use platform for efficient, low-fee transactions and quick withdrawals. Advanced traders might require more extensive technical features.

Key rating criteria:

Type	Minimum deposit	Trading fees	Types of investments	ISAs
Trading platform	£100	Fees are built into the spread	Forex, commodities, indices, options, stocks, ETFs	No

Read my full Plus500 review.

Pros:

• Commission-free trading
• Easy-to-use mobile app
• Quick and helpful customer support
• Low spreads

Cons:

• CFD trading only

4. Freetrade – Best investing app for free share upon signup

A close runner-up is the investment app from Freetrade, a relatively new player in the investment space, having launched their app in 2018.

Freetrade offers one of the easiest ways to get started in investing, with commission-free share trading and free shares for new accounts.

It’s a great option for those looking to invest in the stock market without the hassle of dealing with commissions.

It’s well-suited to beginner investors, with a low entry point, an intuitive user interface, and plenty of helpful resources.

The platform also provides new users with free shares when they open an account, which can be used to get familiar with trading and the stock market.

By opening and funding a new account with a minimum deposit of £50, you will immediately receive a complimentary share worth anywhere between £10 and £100.

In my experience, Freetrade is a great choice for those looking to get started in investing without the commissions and fees associated with more traditional platforms.

Key rating criteria:

Type	Minimum deposit	Trading fees	Types of investments	ISAs
Trading app	£0	£0	Stocks, ETFs, investment trusts, REITs, SPACs, IPOs	Yes

Other fees: £5.99/month for Stocks and Shares ISA, £11.99/month for Self-invested personal pension (SIPP) plus other benefits.

Read my full Freetrade review.

Pros:

• Commission-free trading for stocks and ETFs
• Swift and user-friendly account registration process
• Excellent mobile trading platform

Cons:

• Limited product variety in the portfolio
• Lack of research tools

5. Nutmeg – Best robo-adviser investment app

This investment app from Nutmeg is great if you’re looking for a robo-adviser experience.

Start investing with Nutmeg for quick and easy setup, low fees, and guidance from professionals.

Nutmeg is one of the simplest investing apps for those who want to start investing with minimum hassle and a hands-off approach.

Management fees range from 0.25% – 0.75%. The robo-adviser feature makes it easy to pick from a range of portfolios that are tailored to your risk level and investment goals.

You have the option to invest in various accounts, including a Stocks and Shares ISA, Junior ISA, Lifetime ISA, general investment account, or pension account.

Additionally, you have the flexibility to select from four distinct management styles: fully managed, fixed allocation, Smart Alpha powered by J.P. Morgan Asset Management, and socially responsible.

If you’re confused about what to invest in, Nutmeg constructs a globally diversified portfolio for you, which is customised to align with your financial objectives and risk tolerance.

You can then monitor your investments and performance in real time.

Nutmeg’s user-friendly interface and helpful customer support make it a top pick for those who are just starting to invest.

Whether you want to build a portfolio of stocks and shares, ETFs, or other investments, Nutmeg has got you covered.

With its low management fees and wide range of options, Nutmeg is an excellent choice for beginner investors.

I recommend Nutmeg mainly for its focus on socially responsible investing². Every Nutmeg portfolio gets an ESG score, showing the impact of your investment choice.

Key rating criteria:

Type	Minimum deposit	Trading fees	Types of investments	ISAs
Robo advisor	£100	0.25% – 0.75%	Investment funds	Yes

Other fees: Fund costs (0.21% – 0.36%), Market spread (0.04%). Read more about Nutmeg fees.

Read my full Nutmeg review.

Pros:

• User-friendly interface for easy navigation
• Streamlined investment choices
• Professional management by experts

Cons:

• Subpar track record in investment performance
• Not the most cost-effective option available

6. Moneybox – Best investment app with ’round-up’ tool

Moneybox is an ideal choice for beginner investors.

It offers a range of portfolios, a round-up feature, and a Lifetime ISA.

The app is subscription-based and has a low cost of £1/month, a 0.45% platform fee, and a 0.12%-0.58% fund management fee.

The range of portfolios includes a low-risk option, a medium-risk option, and a high-risk option. This allows you to select the option that best fits your investment goals.

The round-up feature is an automated saving tool that rounds up each purchase to the nearest pound and invests the difference.

Moneybox also offers a Lifetime ISA. This allows users to save up to £4,000/year while receiving a 25% government bonus on top of their savings.

The Moneybox investment app is beginner-friendly and provides you with a complete solution for effective money management.

Key rating criteria:

Type	Minimum deposit	Trading fees	Types of investments	ISAs
Robo advisor	£1	£0	Investment funds	Yes

Other fees: £1/month subscription fee, 0.45% platform fee, 0.12% – 0.58% fund management fee, currency conversion fee 0.45%.

Read my full Moneybox review.

Pros:

• Ideal for beginners looking to start with as little as £1
• Allows for cash savings
• Provides options for a Lifetime ISA, ISA, and Pension (SIPP)
• Assistance is available for mortgage-related matters
• Exceptional customer service

Cons:

• Limited variety in investment choices
• Offers a relatively low cash savings rate
• Restricted additional features or offerings

7. interactive investor – Best investment app for a large portfolio of assets

Interactive investor, a subsidiary of the wealth management behemoth Abrdn, is an appealing choice for investors seeking an extensive suite of assets for building a diverse portfolio.

This UK-based investment app and platform has a rich history of providing insightful financial information and investment services since 1995. It also won ‘Investment Platform of the Year’ by Investors’ Chronicle in 2022³.

Although I’d recommend this investment app to more experienced investors, it does present a user-friendly interface.

Even beginners can smoothly navigate their way around it, managing their portfolio, staying updated with the latest news, keeping tabs on market performance, and creating watchlists.

The app’s biggest advantage is its access to over 40,000 investment options including shares, ETFs, funds, and bonds, as well as ADRs (American Depositary Receipts) from Japan, India, and China.

Interactive investor’s unique selling proposition lies in its fixed monthly subscription fee, instead of the industry-standard practice of annual percentage-based fees.

While this might not make it the most cost-effective option for small investors, the potential tax benefits offered through its ISA and SIPP provisions are worth noting.

The app also provides an assortment of ‘Quick Start Funds’, comprising three Vanguard-backed passively managed funds and three BMO-backed actively managed ones, allowing novices to dabble in globally diversified options.

Furthermore, users gain access to a wealth of expert ideas, research, and insights that can prove invaluable when selecting investments.

Safety isn’t overlooked either. The platform implements biometric technologies like face recognition and fingerprint scanning, enhancing security.

Interactive investor offers a free trade every month. Their regular investing service also removes trading fees. This makes them a solid investment choice.

Key rating criteria:

Type	Minimum deposit	Trading fees	Types of investments	ISAs
Investment platform	£0	£3.99	Stocks, funds, trusts, warrants, ETFs	Yes

Other fees: Stocks & Shares ISA and trading account starting at £4.99/month. Self-Invested Personal Pension (SIPP) starting at £12.99/month.

Read my full interactive investors review.

Pros:

• Intuitive trading platforms for a user-friendly experience
• Swift and hassle-free deposit and withdrawal processes
• Excellent customer service (plus via phone)

Cons:

• Basic charting and analytical tools
• Monthly account fee

8. AJ Bell – Best investment app for active traders & investors

AJ Bell is a top name in the UK’s online investment space. It’s ideal for those doing more than 10 trades a month or having small portfolios.

AJ Bell is among the UK’s largest online investment platforms. Their goal is to make investing simple for all. They provide many choices for DIY investors: shares, funds, bonds, ETFs, ETCs, investment trusts, and warrants.

The platform is well-known for its wide asset range, encompassing funds, and competitively priced ready-made portfolios.

Users can trade seamlessly via a user-friendly platform, which seamlessly transforms into a mobile app for on-the-go management.

The app, mirroring the web platform in design and functionality, is highly responsive.

However, the absence of price alerts might be a bit of a letdown for some.

AJ Bell’s fee structure is compelling, especially if you’re an active trader.

With an annual platform fee that scales down from 0% to 0.25% based on your portfolio size and dealing fees that drop from £9.95 to £4.95 after 10 online share deals in a month, it’s an enticing proposition.

Plus, they extend the option to choose from their Share Dealing Account, Stocks and Shares ISA, Junior Stocks and Shares ISA, Lifetime ISA, SIPP, and Junior SIPP.

Beginners aren’t left behind either. AJ Bell offers a selection of diversified, ready-made investment ideas tailored to various risk appetites and investment goals.

Ranging from growth-oriented to income-centric baskets, these ideas are crafted by specialist teams and are easy to choose from.

On the other hand, if you prefer a more straightforward, uncluttered service from a trusted name like AJ Bell, you might find their newly launched investment app, Dodl, appealing.

Designed with novice investors in mind, Dodl boasts a streamlined interface and attractive pricing structures.

Key rating criteria:

Type	Minimum deposit	Trading fees	Types of investments	ISAs
Investment platform	£500	£1.50 – £9.95	Stocks, funds, trusts, bonds, ETFs	Yes

Other fees: Annual platform fee of 0% – 0.25% for funds and 0.25% for shares (maximum £3.50/month).

Read my AJ Bell review.

Pros:

• Trusted investment app
• No withdrawal fees
• Attractive pricing for mutual fund investments

Cons:

• Annual platform fees

9. Hargreaves Lansdown – Best investing app for selection of funds

Hargreaves Lansdown, an FTSE 100 company, is the UK’s largest investment platform. They are known for their wide asset range and top-notch customer service.

This platform caters to investors wanting a varied portfolio. They offer over 2,500 funds, global shares, ETFs, ETCs, investment trusts, and more.

The flexibility of Hargreaves Lansdown’s approach stands out.

For beginner investors or those who prefer a hands-off approach, the platform provides a range of expertly managed ready-made portfolio options.

More confident investors are given the liberty to select from a broad assortment of funds, shares, and other investments to tailor their portfolios according to their investment strategies.

Pricing at Hargreaves Lansdown might pose a challenge for high-volume traders, as it is comparably steeper than many other platforms.

There is no platform fee for its Fund and Share Account, but it charges a 0.45% fee (capped at £45) annually for its ISA and a similar fee (capped at £200) annually for its SIPP.

They offer an array of products including a Fund and Share Account, Stocks and Shares ISA, Lifetime ISA, Junior ISA, and SIPP.

The Hargreaves Lansdown investing app has the same research features as their web and desktop versions. This makes managing your portfolio easy, even on the move.

However, the app could benefit from the addition of alerts and notifications.

Another compelling aspect of Hargreaves Lansdown is its commitment to human connections.

The platform offers access to human financial advisors, cementing its reputation as a trusted partner for long-term financial planning.

Hargreaves Lansdown may have higher costs, but it’s a top choice for those seeking a diverse portfolio, expert advice, and top-notch service.

Key rating criteria:

Type	Minimum deposit	Trading fees	Types of investments	ISAs
Investment platform	£100	£11.95	Stocks, funds, trusts, ETFs	Yes

Other fees: Annual platform fees of 0% – 0.45% for funds and 0.45% for shares (maximum £45/year).

Read my full Hargreaves Lansdown review.

Pros:

• User-friendly trading platforms
• Access to top-notch educational resources
• Excellent customer service

Cons:

• High fees for stocks and ETFs
• Restricted to GBP as the base currency

10. IG – Versatile UK investment app for smart portfolios

IG is a leading investment app in the UK, renowned for its diverse range of investment options, including CFDs, spread betting, and stockbroking.

It stands out for its extensive array of products. Both the web and mobile platforms of IG are user-friendly, ensuring a smooth trading experience, complemented by 24/7 customer support.

Targeted at a wide audience, IG is particularly beneficial for moderately experienced traders with its Smart Portfolio, while active traders can utilise the Share Dealing account for more hands-on investment management.

New investors will find the Smart Portfolio useful as a robo-advisory tool, and forex enthusiasts will appreciate IG’s strong offerings in forex trading.

Additionally, IG offers an iOS and Android app, providing access to over 12,000 stocks, funds, and investment trusts. The fee structure is advantageous, with UK stock trades starting at £8, reducing with frequent trading.

International trading options come with competitive commissions and a straightforward fee system, including a waived custody fee for active traders. The app facilitates easy funding with multiple payment options and a reasonable minimum deposit requirement.

IG also boasts a range of fully managed, low-cost portfolios, tailored to individual financial needs and managed by experts in partnership with BlackRock.

These portfolios, spanning across various global markets, offer a cost-effective alternative to traditional wealth management, with transparent fees and a focus on diversification suited to different risk appetites.

Overall, IG Investments is a versatile and robust platform that caters to a variety of investor profiles, balancing competitive fees with a wide range of investment opportunities and strong educational and customer support resources.

Key rating criteria:

Type	Minimum deposit	Trading fees	Types of investments	ISAs
Investment platform	£250	0.50% (Managed)	Real stocks & ETFs, exchange-traded securities, CFDs (currency pairs, stock indices, stocks, ETFs, commodities, crypto, bonds, and futures)	Yes

Read my full IG review.

Pros:

• Low-cost managed investment portfolios
• Excellent educational resources
• Huge selection of assets

Cons:

• High minimum deposit

How to Decide Which Investing App Is Best for Me?

When choosing from the best investing apps, there are several factors to consider and compare.

Along with the key rating criteria I used to rank the apps, here’s what to look for:

Low fees

One main advantage of investing through an app over a traditional broker is the low fees.

eToro and Freetrade both offer commission-free trading on stocks and shares.

While managed portfolios offered by Nutmeg, Moneybox, and InvestEngine all have some of the lowest fees in the market.

User experience

User experience is key when it comes to investing, so make sure you choose an app that’s easy to use and provides the features you need.

Look for an app that’s designed for your level of experience, with features that are easy to understand and use.

For example, eToro is number one for beginner investors, with its well-designed app, copy trading feature, and Smart Portfolios.

Alternatively, I’ve found that interactive investor and AJ Bell have a more trade-focused interface, better for more experienced investors.

Consider your preferences and the features you need, and then choose an app that provides a great user experience.

Account types

Investment apps provide a variety of account options, including individual investment accounts (ISAs), self-invested personal pensions (SIPPs), and general investment accounts (GIAs).

It’s important to choose an app that offers the account type that aligns with your investment goals and preferences.

Nutmeg offers a wide variety of account types. They’ve also won awards in every account category, showcasing their excellence.

Useful features

Choose an investment app with many useful features. These should include real-time market data, custom stock alerts, easy investment tracking, and options like copy trading.

eToro excels with its unique charts. These charts are on both mobile and desktop platforms, giving users clear and engaging insights.

Moreover, eToro lets you easily set up custom stock alerts. You can also track your investments using a clear dashboard that comes with live updates.

Finally, their unique social trading aspect allows you to learn investing basics and copy from the best investors.

Reputation

It’s important to consider an app’s reputation before investing, as it can be an indication of how reliable, trustworthy, and secure it is.

As such, it’s important to read reviews and look at user feedback before committing to any investment app.

Additionally, it’s essential to check the app is authorised and regulated by the Financial Conduct Authority (FCA) to ensure the safety of your investments.

The above investment apps are all authorised and regulated by the FCA and have been well-reviewed by users.

Sites such as Trustpilot and Google Reviews can be used to get a better understanding of any investment app’s reputation.

Security

As an investor, it’s important to ensure that the investment app you’re using is secure.

Some of the security features that should be available on an investment app include two-factor authentication (2FA) for account access, secure encryption technology, and customer service support.

Types of Investment Accounts

Many investment apps are available for beginners. Choose an app based on your investment goals and strategy.

Let’s look at some common categories of investing apps:

General Investment Accounts

If you’re a UK investor with an interest in making your own investment choices, look for apps that provide general investment accounts (GIA). These platforms allow you to freely trade a variety of financial assets.

Always check the platform’s markets and its fees. For example, eToro offers a wide variety of investment accounts. It has stocks and ETFs from the UK, US, Europe, and Asia.

Additionally, eToro imposes no commission fees and allows for fractional investing, enabling you to start with as little as $10.

Stocks and Shares Individual Savings Accounts (ISAs)

Certain investors opt for Stocks and Shares ISAs, which offer a tax-efficient way to invest in various assets, such as stocks, ETFs, trusts, and bonds.

If you’re unfamiliar, here’s a brief rundown:

• During the tax year 2023/24, you can invest up to £20,000 into a Stocks and Shares ISA.
• Capital gains and dividends within your ISA are tax-exempt, allowing your investment to grow without tax penalties.
• These ISAs are designed for those looking for long-term growth, often for retirement savings.

However, Stocks and Shares ISAs aren’t without their downsides. Not all investment apps offer them, limiting your choices.

Also, those that do typically charge higher fees.

For example, opening a Stocks and Shares ISA with Hargreaves Lansdown incurs a 0.45% fee based on your investment value. They also charge an £11.95 trading fee each time you buy or sell assets. Therefore, the tax benefits might be outweighed by these high costs in the long term.

Additionally, it’s worth noting that UK investors receive a yearly tax-free allowance. For the 2023/24 tax year, the capital gains tax-free allowance is £6,000, and the dividend tax allowance is £1,000. So, if your gains don’t exceed these amounts, you’re not liable for taxes regardless. However, a 0.5% stamp duty tax on UK investments still applies.

Individual Retirement Plans

Planning for retirement? An individual retirement account is a smart strategy.

Keep in mind, however, that access to your retirement funds is restricted until you reach the age of 55, which will soon change to 57. Therefore, only contribute funds that you won’t need in the immediate future.

You can simultaneously manage this personal retirement account along with an employer-sponsored pension plan, and invest in both.

It’s crucial to be aware of certain contribution limits:

• Up to 100% of your annual earnings
• A lifetime limit of £1,073,100 in total contributions
• An annual contribution cap of £40,000

What Is Investing?

Investing is the process of allocating money or resources to an endeavour, asset, or project with the expectation of generating a profit or return over time.

This can involve purchasing assets that have the potential to increase in value, such as stocks, bonds, real estate, or mutual funds, or it could involve investing in one’s own business.

Investing aims to create wealth over time and achieve specific financial goals, such as funding retirement, buying a home, or paying for education.

It’s a strategy of setting aside money that you don’t need immediately, allowing it to grow and multiply over the long term.

Investing can also serve as a hedge against inflation, as the returns on investments often outpace the rate of inflation.

However, investing also involves risks, as the potential for higher returns comes with a higher possibility of losses.

This is why it’s crucial to carefully study and understand different investment vehicles and strategies, diversify your investment portfolio, and align your investments with your financial goals and risk tolerance.

Why Invest In Financial Assets?

Investing in financial assets comes with several potential advantages:

• Capital Growth: Financial assets like stocks have the potential to increase in value over time. This capital appreciation can significantly contribute to wealth creation.
• Income Generation: Some financial assets provide regular income in the form of dividends (for stocks) or interest payments (for bonds). This can be a consistent source of income beyond traditional work.
• Diversification: Investing in a variety of financial assets helps spread risk. Different types of assets often perform differently under varying economic conditions. By holding a diverse portfolio, you can reduce the impact of any single asset performing poorly.
• Liquidity: Many financial assets like stocks and bonds are quite liquid, meaning they can be quickly bought or sold. This liquidity can be advantageous if you need access to your funds quickly.
• Hedge against Inflation: Typically, the return on investments in financial assets is higher than the inflation rate, preserving the purchasing power of your money.
• Wealth Transfer: Financial assets are easily transferred from one generation to another, making them suitable for inheritance or gifting purposes.

How to Invest Money in the UK

Investing money in the UK involves several steps:

1. Set Your Financial Goals: Identify what you’re investing for. This could be retirement, buying a house, funding your children’s education, or simply growing your wealth.
2. Build an Emergency Fund: Before investing, it’s recommended to have an emergency fund covering three to six months’ worth of living expenses.
3. Understand Your Risk Tolerance: Your risk tolerance will determine the types of investments you should consider. If you’re risk-averse, you may lean towards bonds and cash. If you’re willing to take on more risk for potentially higher returns, you may consider investing in stocks.
4. Determine Your Investment Strategy: This could be investing in individual stocks, bonds, or mutual funds. Alternatively, you might choose a passive investment strategy like investing in index funds or exchange-traded funds (ETFs). You should also take into account the duration of your investment, alongside your current age and your risk tolerance.
5. Choose an Investment App: Several platforms and apps offer investment services in the UK, like eToro, Freetrade, or Interactive Investor. Look for a platform that fits your investment needs and has low fees.
6. Open an Investment Account: You can choose from various types of accounts, including a personal or joint investment account, a Stocks and Shares ISA (Individual Savings Account), or a SIPP (Self-Invested Personal Pension). Creating your account may require you to provide your national insurance number or upload a valid ID card, depending on the platform you select.
7. Diversify Your Portfolio: Spread your investments across different asset classes and sectors to reduce risk.
8. Regularly Review Your Investments: Monitor the performance of your investments and rebalance your portfolio as needed.

For more info, you may find my comprehensive guide ‘Where & How to Invest Money UK‘ useful. Or check out this good YouTube video on getting started with investing in the UK:

How Do Investment Apps Work?

Investment apps are designed to simplify the process of investing by offering a user-friendly platform that you can operate directly from your smartphone or other devices.

When you open an account on an investment app, you will usually be asked to provide some personal information and financial details.

This is part of the Know Your Customer (KYC) regulations, which are designed to prevent fraud and money laundering.

Once your account is set up, you can start investing.

Most UK investment apps offer a range of different assets you can invest in, such as stocks, bonds, ETFs, mutual funds, and sometimes even commodities or cryptocurrencies.

You select the asset you want to invest in, specify how many units you want to buy, and confirm the purchase.

The app then sends this order to a broker, who executes it on your behalf.

Some investment apps also offer features like robo-advising, where an algorithm makes investment decisions on your behalf based on your risk profile and investment goals.

Other apps allow you to invest in fractional shares, meaning you can buy a portion of a stock instead of having to buy a whole share, making it more accessible to people with less money to invest.

Most investment apps make money by charging fees.

These could be flat fees per trade, subscription fees for using the app, or management fees for managing your investments.

It’s important to understand what fees you’ll be charged before you start investing using an app.

Commonly Asked Questions

Here I’ve answered some popular questions people have about investing in general, investment apps, and using them in the UK.

Are investment apps worth it?

Investment apps can be worth it, depending on your financial goals, investing knowledge, and personal preferences.

Here are a few points to consider:

• Convenience: Investment apps allow you to manage your investments on the go. You can check your portfolio, make trades, and research investments at any time and from anywhere.
• Accessibility: Many investment apps have low or no minimum account balances, making investing accessible to beginners or those with less capital.
• Education: Several apps provide educational content to help you learn about investing. This feature is beneficial for beginner investors.
• Automated Investing: Some apps offer robo-advisory services, which automatically manage your portfolio based on your financial goals and risk tolerance. This feature is useful for those who prefer a hands-off approach.
• Cost: While many apps charge lower fees than traditional brokerages, costs can still add up. Some charge for trades, while others have account fees. Be sure to understand all costs before investing.
• Security: As with any online platform, there is a risk of cyber threats. Reputable apps have security measures in place, but you should also take steps to protect your information.

Investment apps are valuable when aligned with your style and goals. It’s important to research and pick the right app for you.

Are investment apps safe?

Yes, most reputable investment apps are safe, but like any online financial service, they aren’t immune to risks.

It’s crucial to use apps from established financial institutions or well-known fintech companies that are regulated by financial authorities, such as the Financial Conduct Authority (FCA) in the UK.

These apps are required to have robust security measures in place, including encryption technologies to protect your personal and financial data.

Many also offer two-factor authentication for added account security.

Despite these protections, it’s essential to be aware of phishing scams and to use strong, unique passwords for your accounts.

In addition, it’s good practice to regularly monitor your account for any unusual activity.

Lastly, remember that while these apps protect against data breaches, they don’t protect against losses from investing, which is a risk inherent to the nature of investing itself.

How much money should a beginner invest for the first time?

The amount a beginner should invest for the first time can vary greatly based on individual circumstances and goals.

As a general rule, only invest money that you can afford to lose, keeping in mind that investments come with risk and the value of your investments can go up and down.

A universal rule is starting with an amount as small as £50 to £100 (if you’re using a platform that allows such low initial investments).

A good strategy is to start small and gradually increase your investments as you become more comfortable with the process.

It’s also vital to have an emergency fund set aside, ideally enough to cover three to six months of living expenses, before you start investing.

This is to ensure you’re not reliant on your investments for unexpected costs, allowing you to take a long-term view with your investing strategy.

Don’t forget, the amount you choose to invest should not put undue stress on your current living situation or future financial stability.

It’s always a good idea to speak with a financial advisor or do extensive research before making these decisions.

What to invest £1,000 in right now UK?

Investing £1,000 in the UK can open a multitude of avenues for you, though the “best” option will depend on various factors such as your risk tolerance, investment goals, and time horizon.

Here are a few potential investment ideas:

1. Stocks and Shares ISA: You could invest your money in a Stocks and Shares ISA, where any profits made are tax-free. Various platforms offer a variety of stocks, bonds, and funds you can choose from. You could invest in a diversified range of assets or target specific sectors or regions depending on your preference.
2. Exchange-Traded Funds (ETFs): ETFs are a popular choice for diversification as they track a broad market index, sector, commodity, or basket of assets. UK-focused ETFs, global ETFs, or sector-specific ETFs can all be solid choices based on your preference.
3. Individual Stocks: If you’re comfortable with the risks and have done your research, you might want to consider investing in individual companies listed on the London Stock Exchange or even international stocks.
4. Peer-to-Peer Lending: Platforms like Zopa or Funding Circle allow you to lend your money to individuals or small businesses in return for interest payments, although this can be riskier than traditional investment methods.
5. Investment Trusts or Mutual Funds: These collective investment schemes pool your money with other investors to buy a diversified portfolio managed by professional fund managers.
6. Savings Account or Fixed-Rate Bonds: If you’re risk-averse, a high-yield savings account or fixed-rate bonds might be an option. They offer more security but usually lower returns.

How do I decide what to invest in?

Deciding what to invest in is an important step that relies on various factors such as your investment goals, risk tolerance, investment horizon, and financial situation.

Firstly, define clear financial goals; are you saving for retirement, a down payment on a house, your child’s education, or perhaps building wealth over the long term?

This will determine your investment horizon.

Risk tolerance is another crucial factor. Some investments carry more risk but can potentially yield higher returns.

Others are less risky but may offer smaller returns. It’s important to know your risk tolerance level to choose suitable investments.

For instance, if you can’t afford to lose your investment or are nearing retirement, you may want to choose safer investments such as bonds or mutual funds.

Your current financial situation also plays a vital role. For instance, if you have high-interest debt, it might be better to pay that off before investing.

Also, ensure you have an emergency fund set up to handle unexpected expenses. Consider diversifying your portfolio across different asset classes (stocks, bonds, real estate, commodities, etc.) to spread risk.

Researching different sectors, companies, and trends can also provide investment ideas. Lastly, continuous learning is essential.

Educate yourself about different investment options, stay updated with financial news, and consider consulting with a financial advisor.

Remember, investing is a long-term endeavor, and informed decision-making is key.

What is the best way to invest small amounts of money in the UK?

Investing small amounts of money in the UK can be a smart and accessible way to start building wealth.

Here are a few methods that are particularly suited for small investments:

1. Stocks & Shares ISA: A Stocks & Shares Individual Savings Account (ISA) allows you to invest in a wide range of stocks, bonds, and funds, and any gains or income are tax-free.
2. Micro-Investing Apps: Apps like Moneybox or Nutmeg allow you to invest small amounts regularly. Some of these apps round up your purchases to the nearest pound and invest the difference, making it an effortless way to accumulate a nest egg over time.
3. Regular Savings Accounts: Some banks offer regular savings accounts that allow you to save a small amount each month, offering a higher interest rate than standard savings accounts.
4. Exchange-Traded Funds (ETFs): ETFs can be a cost-effective way to invest in a diversified portfolio as they track a specific index or sector. You can start investing in ETFs with a relatively small amount of money.
5. Robo-Advisors: Robo-advisors like Wealthify or Wealthsimple manage your investments based on your risk tolerance and goals. They typically have low minimum investment requirements and use algorithms to create and manage a diversified portfolio for you.
6. Peer-to-Peer Lending: Peer-to-peer lending platforms allow you to lend small amounts of money directly to individuals or businesses in return for interest payments. However, it’s important to note that these investments are not covered by the Financial Services Compensation Scheme and carry a risk of loss.

What is the safest way to invest in the UK?

Investment safety is usually determined by the level of risk associated with the investment.

Lower-risk investments are generally considered safer, though it’s important to note that all forms of investment carry some risk, including the risk of loss.

Here are a few relatively safe ways to invest in the UK:

1. Savings Accounts and Cash ISAs: These are generally considered the safest options since your original capital and interest are protected. However, the returns are usually quite low, and inflation may erode the value of your savings over time.
2. Government Bonds (Gilts): UK Government bonds, also known as gilts, are considered very safe because they are backed by the British government. The risk of the UK government defaulting on its debt is extremely low, so your investment is pretty secure. However, the returns may not be as high as other investments.
3. Fixed Interest Bonds: These offer a fixed rate of interest over a set period. They can be a safe way to invest as you know exactly how much you will receive back at the end of the term, provided the company issuing the bond does not go bust.
4. Diversified Investment Funds or ETFs: Diversified funds or ETFs that spread their investments across a broad range of assets can also be a safer choice. By diversifying, the risk is spread across many different investments, which can reduce the impact of one investment performing poorly.
5. Pension Funds: Contributing to your pension is a relatively safe and tax-efficient way to invest. Your contributions are usually invested in a diversified portfolio of assets to grow over the long term.
6. Defensive Stocks: Companies in sectors such as utilities, healthcare, and consumer goods often perform consistently and offer regular dividends. They might not offer huge growth, but they are typically more stable.

Where can you go for stock advice?

There are numerous resources available online for those looking for advice on stock investing.

Here are a few websites that offer insights, analysis, and discussions on stocks:

1. Yahoo Finance: A comprehensive site that offers financial news, data, portfolio management resources, and more.
2. Investopedia: This site provides a wide range of information on investing, including articles, tutorials, definitions, and advice.
3. Seeking Alpha: This site offers stock market insights and investing strategies from a community of experts and contributors.
4. Motley Fool: Known for its stock-picking advice, this site provides insights into investing in stocks, mutual funds, and retirement.
5. Zacks Investment Research: Offers extensive data, articles, and advice on stocks, mutual funds, ETFs, and more.
6. Bloomberg Markets: Provides news, analysis, and financial data on global markets, including stocks.
7. Morningstar: Known for its in-depth mutual fund research, Morningstar also provides valuable insights and data on stocks.
8. TradingView: A network where traders can share and exchange ideas on stocks.
9. CNBC Markets: A segment of the CNBC website dedicated to market news and stock data.
10. TheStreet: Offers financial news and advice, including stock picks and strategies.

Remember, while these websites can provide valuable insights and advice, it’s important to use this information as a part of your overall research and not the sole basis for your investment decisions.

What are the best auto investment apps in the UK?

There are several auto investing apps available in the UK that can help simplify investing and make it more accessible.

Here are a few worth considering:

1. Moneybox: Moneybox is an app that rounds up your everyday purchases to the nearest pound and invests the spare change into a range of simple tracker funds. It’s a great way to automate investing and get started with minimal upfront investment.
2. Nutmeg: Nutmeg offers automated portfolio management based on your risk appetite and financial goals. You answer a few questions about your financial goals, and Nutmeg will recommend a fully managed portfolio that suits your needs.
3. Wealthify: This robo-advisor creates and manages an investment plan tailored to your risk tolerance and financial goals. Once you deposit funds, the app automatically invests in diversified portfolios of low-cost ETFs.
4. Plum: Plum is an app that automatically saves money for you and can invest those savings in a range of funds. It uses algorithms to analyse your income and spending patterns and sets aside an amount that you can afford to save or invest.
5. Vanguard: If you’re looking to invest in low-cost index funds, Vanguard’s app allows you to automate contributions to your portfolio.

For more details, check out my comprehensive guide on the best automatic investment apps in the UK.

What are the best free UK investing apps?

Several investment apps in the UK are free to use, offering access to a range of stocks, funds, and other investment options.

Here are some noteworthy ones:

1. eToro: Known for its social trading features, eToro allows you to follow and copy the trades of experienced investors. It provides commission-free trading in stocks and ETFs, though it’s worth noting that other fees may apply, like withdrawal fees.
2. Freetrade: A UK-based platform, Freetrade, provides free access to buying and selling shares in the stock market. It’s easy to use, ideal for beginner investors, and you can start investing with as little as £2.
3. Trading 212: This is another platform that offers commission-free investing in stocks and ETFs, with an easy-to-use interface suitable for both beginners and more experienced traders. It also offers fractional shares, meaning you can invest with small amounts of money.
4. Revolut: Revolut’s main service is a digital bank, but it also offers fee-free trading of U.S. stocks. You can start investing with as little as £1 and buy fractional shares.
5. Degiro: Although not entirely free, Degiro offers very low-cost access to a huge range of global stock markets and is known for its extensive range and low fees.

Be cautious, while the apps are free to download and offer commission-free trades, there may be other associated costs, such as foreign exchange fees, withdrawal fees, or inactivity fees.

Always check the fee structure before starting to invest.

What is the best investment app for beginners in the UK?

Here are the best investment apps for beginners in the UK:

1. eToro – Ready-made investment portfolios perfect for beginners
2. InvestEngine – Low-cost ETF investing
3. Freetrade – Commission-free trading
4. Nutmeg – Robo-advisor investment app
5. Moneybox – Automatic round-up investing great for beginners
6. interactive investor – Free for regular investing
7. AJ Bell – Great for active traders
8. Hargreaves Lansdown – Large selection of funds

Can I make passive income through investing?

Investing can indeed be a powerful way to generate passive income. This is income that you earn without actively working for it regularly.

Many investments can generate income in the form of interest, dividends, or capital gains.

For example, investing in dividend-paying stocks or funds can generate a steady stream of income as these companies distribute a portion of their earnings back to investors.

Similarly, investing in bonds or other fixed-income securities can provide regular interest payments.

Real estate investments, either through physical property or real estate investment trusts (REITs), can yield rental income.

Peer-to-peer lending platforms or high-yield savings accounts can also provide interest income.

Lastly, investing in growth stocks or funds can lead to capital gains over the long term, which although not ‘income’ in the traditional sense, can boost your wealth passively.

Final Thoughts

After reviewing the best investment apps in the UK, it’s clear that there’s something for everyone.

If you’re a beginner or an investor seeking a managed portfolio, there’s a suitable app for your financial goals.

All you have to do is decide which one is right for you. By taking the time to understand what you’re looking for and what each app offers, you can make an informed decision and start investing with confidence.

But, for beginners, I’d recommend eToro as the best investing app in the UK.

FAQs

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• Best investment platform UK
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Sources:

1. https://appradar.com/blog/best-investment-apps-2022 ↩︎
2. https://online.hbs.edu/blog/post/sustainable-investing ↩︎
3. https://celebrationofinvestment2022.investorschronicle.co.uk/page/2431816/2022-winners- ↩︎