Best Investment Platforms in UK 2024

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Choosing the right investment platform in the UK is crucial to getting the most out of your investments whether you’re a newbie or an old hand. Many platforms offer different features such as stocks and shares ISAs, self-invested personal pensions (SIPPs) and low fees. In this guide we’ll look at some of the best investment platforms and highlight their pros and cons to help you choose the one that’s right for you.

Best Investment Platforms

There are many investment platforms in the UK, each for different needs such as newbie investors, experienced investors and commission free trading. When looking at these platforms consider the annual platform fee which can eat into your overall investment returns. Here are some to consider:

a. Hargreaves Lansdown

Overview: One of the biggest investment platforms UK, with a wide range of investment funds, ready made portfolios and free financial coaching sessions.
Best for: Those who want a full service investment platform with access to qualified financial planners and fund dealing charges.
Platform fee: 0.45% per annum on funds.

b. Interactive Investor

Overview: Flat fee platform for larger portfolios, with free fund dealing, low cost investing and free monthly trade.
Best for: Frequent traders and those with bigger portfolios.
Platform fee: Monthly fees start at £9.99, trading fees from £5.99.

c. eToro

Overview: Commission free trading and access to the stock market, eToro is a popular choice for UK investors looking for low cost stock trading.
Best for: Newbie investors and those interested in social trading.

What is an Investment Platform?

a. What is an Investment Platform

An investment platform is a digital service, usually a website or app, where you can buy, sell and monitor your investments. These platforms offer access to a range of investment options including shares, funds, investment trusts and bonds. By using an investment platform you can manage your investments online or through a mobile app and stay on top of your financial goals.

b. Types of Investment Platforms

Investment platforms come in many forms, each for different investor needs:

Online Brokerages: These platforms allow you to buy and sell investments online, often at lower fees than traditional brokerages. Good for those who like to be hands on with their investments.
Robo-Advisors: Using algorithms these platforms manage your investments for you, providing diversified portfolios based on your risk tolerance and investment goals. Good for those who want a more passive investment strategy.
Investment Apps: Designed for on the go management, these mobile apps let you manage your investments anywhere, anytime. Popular with younger investors and those who prefer mobile first solutions.
Self-Invested Personal Pensions (SIPPs): These platforms allow you to manage your own pension investments, giving you more control over where your retirement funds are invested.

c. Why Use an Investment Platform

Investment platforms offer many benefits:

Convenience: Manage your investments online or through a mobile app, buy and sell investments when you want.
Lower Fees: Many investment platforms charge lower fees than traditional brokerages, so investing is more cost effective.
Diversification: Access a range of investment options, so you can diversify your portfolio and reduce risk.
Education: Get educational resources and tools from many platforms to help you make informed investment decisions and improve your financial knowledge.

What to Consider When Choosing an Investment Platform

a. Fees and Charges

When choosing an investment platform you need to understand the various fees and charges that apply. These can impact your investment returns and overall experience:

Platform Fee: Some platforms charge an annual fee for holding your investments. This can be a flat rate or a percentage of your portfolio value.
Trading Fees: Many platforms charge fees for buying and selling investments. These fees can vary widely so compare costs especially if you plan to trade frequently.
Management Fee: If the platform offers managed investment services there may be a fee for this, usually a percentage of your portfolio value.
Inactivity Fee: Some platforms charge a fee if you don’t log in to your account or make trades for a certain period. This is something to consider if you plan to take a more passive approach to investing.
Withdrawal Fee: Some platforms charge a fee for withdrawing funds from your account. Be aware of these fees to avoid surprises.

By considering these fees and charges you can choose a platform that fits your investment goals and budget and get the best value for your money.

Investment Platforms

When choosing a platform you need to consider platform fees, investment options and ease of use. Some platforms offer mutual funds, investment trusts, stocks and shares ISAs and exchange-traded funds (ETFs).

For DIY investors platforms like Interactive Investor and Hargreaves Lansdown allow you to choose your own investments. Others like Wealthify offer ready made portfolios for a more passive approach.

Financial Services Compensation Scheme (FSCS) Protection

All UK investment platforms are protected by the Financial Services Compensation Scheme (FSCS). This means your investments are protected up to £85,000 if a platform or broker fails, extra peace of mind for investors.

SIPP Options

For long term retirement savings many platforms offer self-invested personal pensions (SIPPs). These allow you to control where you invest your pension funds with access to a range of investment funds and stocks.

Interactive Investor and AJ Bell Youinvest are two of the top SIPP providers in the UK, low cost and diverse investment strategies.

Comparing Platforms

When comparing investing platforms in the UK consider:

Fees: Annual platform fee, dealing fee and management fee. Platforms like Interactive Investor have a flat fee structure, Hargreaves Lansdown charge a percentage based fee.
Investment Options: Look for platforms that offer a range of investment ideas, general investment accounts, individual savings accounts (ISAs) and mutual funds.
Advanced Trading Tools: Some platforms offer advanced features like professional investors‘ insights, capital gains tax tools and financial coaching for frequent traders.

Alternative Platforms

Beyond the traditional platforms there are alternative platforms like Crowdcube or Seedrs where you can invest in startups and private companies. In addition to traditional platforms consider opening a stocks and shares ISA for tax efficient investing. These alternative platforms can offer high returns but come with higher risk as they are early stage investments.

Conclusion: Best Investment Platform UK

Choosing the best investment platform in the UK depends on your investment goals, portfolio size and preferred fee structure. For low cost platforms Interactive Investor and eToro are good options, for a comprehensive range of investment funds and free financial coaching sessions Hargreaves Lansdown is a good choice.

By comparing platforms on fees, features and investment options you can find one that suits you.