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Always remember that investments can go down as well as up in value, so you could get back less than you put in. A rule of thumb is to hang on to your investments for at least five years to give them the best chance of providing the returns you want.
Contents:
We’ve compiled a list of the best investment apps in the UK, divided into three categories: investment platforms, robo advisors (automated investing), and trading apps.
These apps are authorised and regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA). They are also all available to download on Android and iOS devices, while a handful can be accessed on both desktop and mobile devices.
Please remember that when you invest, your capital is at risk. ISA, pension, and tax rules also apply.
Here are the best investment apps in the UK:
Moneybox is a UK investment app that allows you to invest in a range of tracker funds, exchange-traded funds (ETFs), exchange-traded commodities (ETCs) and US stocks. Moneybox offers two forms of investing depending on your investment savviness, investing strategy and attitude to risk. Beginner investors or those who prefer a ready-made portfolio can choose from the three ready-made portfolios on offer - Cautious (lower risk), Balanced (medium risk) and Adventurous (higher risk). Advanced or more confident investors can pick from the range of tracker funds, ETFs, ETCs and US stocks available and build their portfolios themselves.
The Moneybox app also empowers you to invest your spare change by rounding up your card transactions to the nearest pound and investing the difference on your behalf. For example, if you spend £2.30 on a snack, Moneybox will invest 70p for you. You can also instruct the app to make weekly or one-off deposits into your investment portfolio as it rounds up your spare change.
You can start investing with Moneybox with as little as £1. Moneybox offers commission-free trading on US stocks. However, fund management fees apply to other types of investments. A currency conversion fee of 0.45% also applies to US stocks. Moneybox’s suite of products includes a Stocks and Shares ISA, Lifetime ISA, Junior ISA, Personal Pension, and General Investment Account.
Please note: US stocks on Moneybox are only available via a Stocks and Shares ISA.
Capital at risk.
Earn up to 5.2% annual interest on uninvested cash
XTB is a user-friendly, fully-customisable European trading platform renowned for its extensive CFD and forex trading offerings. XTB provides traders instant access to hundreds of global markets and over 5,600 instruments, including UK and overseas stocks and shares, ETFs, forex, indices, commodities, stock CFDs, and ETF CFDs.
XTB is good for beginners and even better for experts. Beginners can take advantage of XTB’s Passive Investment Plan designed for long-term investing. This plan allows you to build a portfolio of ETFs, set up recurring deposits so you invest regularly while taking advantage of pound-cost averaging, and invest fractionally so you can afford even the most expensive ETFs with as little as £15. Expert or advanced traders and investors have two choices of software when trading with XTB. You can access the in-house trading software, xStation, and MetaTrader 4 (MT4). xStation by XTB is a powerful trading software available on iOS, Android, and desktop devices suitable for beginners and advanced traders. The xStation trading software provides comprehensive charting and risk management tools. With the inbuilt trading calculator, you can easily estimate costs, profits or losses before opening a position, modify stop loss and take profit orders directly on the chart or close all positions with a click of a button. XTB also provides an extensive library of educational materials, including videos, webinars, and courses suitable for beginners and experienced traders. When you sign up, you will have access to a dedicated account officer who will work with you to help you better understand your needs and how XTB operates.
It is free to open a trading account with XTB, and all users have access to a free demo account with £100,000 of virtual funds that you can use to practise trading and investing until you become confident enough to use real money. Deposits in GBP and EUR are free of charge, but withdrawals below £60 have a £12 processing fee. Real stock trading is commission-free for monthly turnover up to €100,000 (£85,000). Transactions above this limit will attract a commission of 0.2% (minimum €10 (£8.50). If you invest in foreign stocks and ETFs, a 0.5% currency conversion fee may apply. Stock and ETF CFD trading are also commission-free. Other fees apply. XTB does not offer an ISA or SIPP.
Please note: Contracts for Difference (CFDs) are leveraged products and carry a significant risk of loss to your capital, as prices may move rapidly against you, and you may be required to make further payments to keep any trades open. Between 74 and 89% of retail investor accounts lose money when trading CFDs. These products are not suitable for all clients. Therefore, please ensure you fully understand the risks and seek independent advice.
InvestEngine is a low-cost ETF investment platform that provides a choice of managed portfolios tailored to you and commission-free DIY investing to help you build long-term wealth. Users can invest in over 500 exchange-traded funds (ETFs) from iShares, Vanguard and other leading brands.
With InvestEngine, you can invest in two ways depending on your investment savviness: Beginner investors or those who prefer to choose a ready-made investment portfolio can select from one of the Managed Portfolios on offer, where the team of experts at InvestEngine will take care of the day-to-day investment decisions for you. These portfolios are a selection of ETFs based on your preferences and risk tolerance, and they have a platform fee of 0.25% per year. Advanced or more confident investors can choose from 500+ commission-free ETFs and build their portfolios themselves. With the DIY Portfolio, there are no platform fees. All InvestEngine portfolios are free of setup fees, dealing fees, ISA fees or withdrawal fees.
InvestEngine stands out amongst its competitors as one of the cheapest investment apps in the UK because it charges no platform or management fees on its DIY Portfolio and just 0.25% a year on its Managed Portfolio. You can also start investing with as little as £100. InvestEngine’s suite of products includes a Stocks and Shares ISA, Personal Account and Business Account.
Capital at risk.
Earn up to 5.3% annual interest on uninvested cash
eToro is a multi-asset investment platform that offers both investing in stocks and cryptoassets, as well as trading CFDs. With eToro, UK traders have real-time access to thousands of stocks, ETFs, indices, commodities, forex, cryptocurrencies, and NFTs from top exchanges worldwide. Catering to beginners and expert traders, eToro provides an impressive range of fundamental and technical analysis tools, including market news, economic data, social media trends, news sentiment trends, and advanced charting tools.
If you are new to investing or prefer a more hands-off approach, eToro has over 40 fully allocated, balanced investment portfolios, focusing on market segments you can understand and relate to. Some of the portfolios include MetaverseLife, BigTech, GoldWorldWide, Vaccine-Med, BitcoinWorldWide, Diabetes-Med, Driverless, and GigEconomy. These portfolios are a grouping of several assets, such as stocks, cryptocurrencies, ETFs, and even people, bundled together based on a predetermined theme or strategy. eToro also offers Copy Trading, which allows everyday investors to copy the trades or investments of top-performing traders on the eToro platform. Anyone can copy trades on eToro, and, in the same way, anyone can give others access to copy their trades.
It is entirely free to open an account with eToro, and all registered users receive a US$100,000 demo account for free, which you can use to practise trading or investing until you become confident. Trading on eToro occurs in USD, so a currency conversion fee will apply if you deposit or withdraw in a currency other than USD. Withdrawals incur a fee of US$5 (£4), and the minimum withdrawal amount is US$30 (£24). For UK customers, eToro offers an eToro Money app which allows you to convert your GBP to USD free of charge, thereby reducing your foreign exchange costs. eToro does not offer an ISA or SIPP.
Please note: Your capital is at risk. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Additionally, cryptoassets are high-risk investments, and you should not expect to be protected if something goes wrong. Tax on profits may apply. Copy Trading does not amount to investment advice. Other fees apply. For more information, visit eToro.
Freetrade is a popular app for investing in stocks in the UK, offering a mobile trading platform that gives access to thousands of UK and overseas stocks, ETFs, and investment trusts covering different sectors and markets worldwide. The Freetrade app can be accessed on iOS and Android and offers a slick and easy-to-use user interface and experience. The app is also a great choice for both beginners and experienced investors.
With Freetrade, you can invest in fractional shares of even the most expensive US shares with as little as £2. Depositing, trading and withdrawing on Freetrade are commission-free (other charges may apply). FX rates apply to US stocks at the spot rate + 0.99%. To get the most out of Freetrade, you can choose from three subscription plans. The Basic Plan costs £0.00 per month and allows you to open a General Investment Account (GIA) and trade commission-free. The Standard Plan costs £5.99 per month and allows you to open a Stocks and Shares ISA in addition to your GIA. With the Plus Plan at £11.99 a month, you get a Self-Invested Personal Pension (SIPP) and a Stocks and Shares ISA in addition to your GIA. Dealing on Freetrade is commission-free, irrespective of the subscription plan you choose. Freetrade’s suite of products includes a Stocks and Shares ISA, General Investment Account (GIA) and SIPP.
Special offer: Get a free share worth £10 when you join Freetrade and fund your account with at least £50.
Please note: When you invest, your capital is at risk. The value of your investments can go down as well as up, and you may get back less than you invest. ISA rules apply. SIPP eligibility and tax rules apply. Free share terms and conditions apply.
Plum is a UK money management and investment app that helps you manage your money and build an investment portfolio. With Plum, you can invest in up to 21 funds and over 3,000 UK and overseas stocks. Plum also offers ethical or ESG investment options for those who want to invest in line with their values.
The Plum app empowers you to invest your spare change by rounding up your card transactions to the nearest pound and investing the difference on your behalf. For example, if you spend £1.20 on a snack, Plum will invest 80p for you. The app also calculates how much you can afford to set aside and invests it automatically once a week.
You can start investing with Plum with as little as £1. Plum charges a monthly subscription fee ranging from £2.99 to £9.99 per month; you get the first month free. Stock trading on Plum is commission-free (other charges may apply). FX rates also apply to US stocks at the spot rate + 0.45%. The average annual fund management fee across all funds offered is 0.39%. Plum’s suite of products includes a Stocks and Shares ISA, General Investment Account and Personal Pension.
Capital at risk
Moneyfarm is a UK robo advisor that provides you with a personalised investment plan based on your risk preferences and goals. With Moneyfarm, you can invest in one of seven risk-rated portfolios recommended to you based on the result of an online assessment. Each portfolio comprises a mix of cost-efficient exchange-traded funds (ETFs) and other passive index trackers. Moneyfarm also offers ethical investments or instruments with Environmental, Social, and Governance (ESG) considerations for those who want to invest in line with their values.
Moneyfarm’s customers also benefit from free and personalised digital financial advice from Moneyfarm’s investment consultants, and you can chat, phone, email, or meet your consultant in person. To get started, you will be asked to complete a short survey so that Moneyfarm can better understand how you approach your finances before matching you to your investment portfolio and consultant.
You can start investing with Moneyfarm with as little as £500. Moneyfarm charges an annual management fee depending on how you choose to invest, ranging from 0.75% to 0.35% on the total value of your portfolio. An annual fund management fee of 0.20% (average) also applies to all portfolios. This is built into the cost of the ETF or tracker fund on any given day, so you will not see fund charges being deducted from your portfolio directly. Moneyfarm’s suite of products includes a Stocks and Shares ISA, Junior ISA, General Investment Account, and Personal Pension.
Capital at risk.
Wealthify is a UK robo advisor that allows you to choose from five investment Plans based on your attitude to risk. These investment Plans are named Cautious, Tentative, Confident, Ambitious and Adventurous and allow you to choose a risk level that best suits your needs. If you are conscious about the environment or would simply like to invest in line with your values, each of Wealthify’s five portfolios is also available as an ethical investment Plan, so you can stay true to your values while potentially growing your money.
With Wealthify’s ISAs and General Investment Accounts, the minimum investment is £1, and you can withdraw your money anytime. There is an annual platform fee of 0.60%, and fund management fees range from 0.16% to 0.70% per year, depending on your chosen investment theme. Once you complete the signup process, you can start investing with a lump sum, which you can top up as frequently as you want.
Wealthify’s suite of products includes a General Investment Account, Stocks and Shares ISA, Junior ISA and SIPP in both Original and Ethical themes.
Capital at risk.
Investing is the process of putting your money to work with the aim of growing it over time. In other words, it is about allocating your resources, such as cash or other assets, to various investment opportunities in the hope of generating profits, income, or both.
Investing can help you build wealth, protect your purchasing power against inflation, and achieve your financial goals.
There are many different types of investments, including stocks, bonds, real estate, and even art or collectables. When you invest, you purchase these assets with the expectation that they will appreciate in value, generate income, or both over time.
This is different from simply saving your money in a bank account, where your primary goal is preserving your capital and earning a modest amount of interest.
Investing in stocks and shares can be an effective way to grow your money and reach your financial goals.
Everyone has different financial goals. Some people want to save for a cosy retirement, while others may want to buy a house or have a wedding.
No matter your goal, investing in stocks and shares can help your money grow over time. Usually, you’ll get better returns from stocks than simply keeping your money in a regular bank account.
A study by Barclays in 2019 showed that stocks do better than cash nine times out of ten in any ten-year period. For shorter periods, like five years, this drops to seven out of ten.
How much can you make in the stock market? Well, it depends. On average, your investment might grow by 3 - 12% per year. But there are no guarantees.
How well your investments do depends on a few things, such as:
Besides your investments growing in value, you can also earn money from some companies when they make a profit. This money is called a dividend, and it’s like getting a piece of the company’s profit.
One thing to remember when investing is that “past performance is not a reliable indicator of future results.” This means that just because a company did well before doesn’t mean it will always do well. Nobody can predict the future, so it’s important to do your research before investing in the stock market.
To invest money in the UK, you’ll need to:
Here are the best investment apps for beginners in the UK:
To invest £5,000 in the UK, you’ll need to, first and foremost, establish clear financial goals and set aside an emergency fund to cover any unexpected expenses that may arise.
Next, tax efficiency should be a primary consideration. A Stocks and Shares ISA can be a valuable tool for this purpose, allowing you to invest in a diversified portfolio of assets, such as index funds, ETFs, bonds, or REITs, all while keeping your gains tax-free.
For long-term investment goals, a Lifetime ISA or pension scheme could be advantageous, as they often come with government bonuses and tax relief. These options can help you build a nest egg for future milestones, such as purchasing a first home or enjoying a comfortable retirement.
First-time investors should invest as little or as much as they feel comfortable investing. The best investment apps in the UK will allow you to start investing with as little as £25 a month. Some even accept £1.
At Koody, we recommend using the 50/30/20 budget calculator to divide your monthly net income into three categories: Needs (50%), Wants (30%), and Savings and Investments (20%). If you allocate 20% of your income to Savings and Investments, you can reasonably decide how much of that 20% you want to invest. Budget by Koody is an excellent tool for sorting out your finances, categorising your spending and making plans for your future.
Beginners with little money can start by investing in fractional shares. Fractional shares allow you to own a portion of a share instead of a full share, making it more affordable and accessible for many investors. For example, if Apple’s share price is £100 and you only have £20 to invest, you could use a fractional share provider to buy one-fifth of a share of Apple. Popular fractional share providers in the UK include eToro and Freetrade.
The best investments for beginners in the UK are:
Yes, investment apps are most certainly worth it in the UK. Investment apps allow you to access a wide range of stock market products directly from your smartphone or tablet. This means you can create, monitor and rebalance your investments at any time without using a desktop computer or calling a stockbroker.
This level of access and convenience means you know exactly how much your portfolio is worth at any given time and can keep on top of market news and stock market updates with just a click of a button. Today, almost all investment platforms in the UK offer an iOS or Android investment app, so even if you choose to open an account with an established platform, you will still enjoy the convenience of a modern mobile app.
Investment apps are generally safe to use, as they are regulated by financial authorities such as the Financial Conduct Authority (FCA) in the UK. These regulatory bodies ensure that investment apps comply with strict rules and guidelines to protect the interests of their users.
However, it is essential to choose a reputable and well-established investment app with robust security measures in place. These measures may include data encryption, two-factor authentication, and regular security audits to protect your personal information and financial transactions.
While no investment is entirely risk-free, using a regulated investment app can provide you with a secure and convenient way to manage your investments. Always do your research and read reviews to ensure you are using a trustworthy app, and never invest more than you can afford to lose.
Here are some of the best stock research websites in the UK:
Automatic investing involves giving a finance app permission to regularly invest your spare change or small amounts of money into the stock market. Automatic investment apps use their technology to estimate how much you can afford to invest and automatically invest it for you.
While most of these apps use Open Banking technology to analyse your spending habits in order to estimate the right amount of money to invest on your behalf, others round up your purchases and automatically invest the change, and some simply allow you to set up direct debits to move a certain amount into your investment account on a regular basis.
Here are the best auto-investing apps:
The best stock trading apps in the UK are XTB, eToro, and Interactive Investor. These are easy-to-use, low-cost mobile apps for trading shares, ETFs, REITs, and other investment products.
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