Best 5 UK Investment Platforms for British Investors
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An investment platform is a digital tool that enables investors to manage various financial instruments like stocks, bonds, mutual funds, ETFs, options, futures, cryptocurrencies, and real estate.
These platforms offer a user-friendly way for investors to buy, sell, trade assets, monitor portfolios, conduct research, and access educational resources. They can take various forms, such as online brokerage, robo-advisors, peer-to-peer lending, cryptocurrency exchanges, and real estate crowdfunding platforms.
The choice of the right investment platform and app depends on an investor’s goals, preferences, risk tolerance, and level of involvement. Major investment platforms like Hargreaves Lansdown, Vanguard, AJ Bell, Fidelity, and eToro have been ranked in a survey of thousands based on customer ratings and fee analysis. These platforms are suitable for British investors, given that some are based in the UK or have registered offices there.
Benefits of Using a UK Investment Platform
- Diversity and choice: Investment Platforms allow you to invest in a range of asset classes through a variety of managed funds – with some platforms also offering direct shares and margin lending (gearing). This may provide you with access to several fund managers, each offering a variety of investing alternatives, contingent on the intricacy of the platform.
- Your investments are in one place: Without compromising on diversity, platforms can combine your investments under a single administration facility. You receive consolidated reports (simplifying your tax reporting), regular updates, and often 24-hour online access to your portfolio.
- Access to specialist or wholesale funds: It can provide access to specialist and/or wholesale funds that would otherwise be outside your reach.
- Flexible fees: Some platforms provide flexible fee structures and certain fees may be tax deductible.
- You retain control: You can retain control over where your money is invested and, in consultation with your financial adviser, you can create the investment strategy that is best suited to your financial needs and goals.
As long as your money remains invested through the platform, you can instruct your adviser to switch investments or change your strategy at any time, online or over the telephone. As a result of these added services and functionalities, you may incur an administration fee for using the platform.
If you’re thinking about investing through a platform, it’s important to consider your circumstances and make an informed decision. Let’s move on to explore the best investment platforms in the UK!
Top 5 Investment Platforms Available in the UK
1. Hargreaves Lansdown (Best for DIY investing)
Website: https://www.hl.co.uk/
Annual Platform Fee: Up to 0.45%
With a history of over four decades, Hargreaves Lansdown consistently assisted clients in maximizing their investments, saving both time and money while navigating tax implications. Currently entrusted with an impressive £120 billion by over 1.7 million clients, with a workforce exceeding 2,000 dedicated professionals. It excels not only in investment management but also in providing seamless trading experiences for its clients.
Notable Features:
- Ready-made portfolio
- Portfolio building blocks include global corporate bonds, strategic bonds, UK income, UK growth, European, US, and Asia and Emerging Markets funds.
2. Interactive Investor (Best for experienced investors)
Website: https://www.ii.co.uk/
Annual Platform Fee: £120 – £240
Interactive Investor is a global investment platform with 400,000 clients and offers a fixed platform fee for investors with higher-value portfolios. It offers impartial financial insights alongside the necessary tools and trading infrastructure, empowering users to make informed and assured investment choices of shares, funds, investment trusts and bonds via trading accounts, ISAs and SIPPs. With access to 17 overseas markets, clients can invest monthly and pay interest on cash balances.
Notable Features:
- No trading fees for regular investing services.
- Access ready-made funds and expert recommendations for personalized investment choices.
3. Degiro (cheapest way to invest online)
Website:https://www.degiro.com/
Annual Platform Fee: £0
Degiro is a top-notch investment app offering a wide range of trading options including stocks, bonds, ETFs, options, and more. With access to 50 global exchanges and 200 commission-free ETFs, investors can diversify their portfolios easily.
Notable Features:
- Trusted by over 1 million customers in 18 countries.
- Ideal for investors at any level, from beginners to experts.
4. eToro (best for beginners)
Website: https://www.etoro.com/
Annual Platform Fee: Free
eToro is a social investing platform that has about 30 million users in over 100 countries. It offers trading tools like stop losses, limit orders, and leveraged trading, and allows beginner and experienced investors to interact. However, it charges a 0.5% currency conversion fee when deposited in UK dollars, and has a withdrawal fee and inactivity fee. eToro offers a wide range of shares, ETFs, and cryptocurrencies.
Notable Features:
- Craft a unique portfolio and copy top traders.
- Regulated by FCA (UK), ASIC (Australia), CySec (Cyprus), GFSC (Gibraltar), FinCen, and FINRA (United States).
5. Bestinvest (best for large long-term investors)
Website: https://www.bestinvest.co.uk/
Annual Platform Fee: starts from 0.2%
Bestinvest, owned by Evelyn Partners, offers a low share trading fee of £4.95 for UK shares and no fees on funds or US shares. However, it charges a high foreign exchange fee and platform fee for non-ready-made portfolios. Customers can trade online, by app, or over the phone with a low telephone dealing fee of £30.
Notable Features:
- “Spot the Dog” report exposes underperforming funds.
- The investment selector tool enables research and comparison of funds, displaying ongoing charges, yield, and Bestinvest star ratings.
Conclusion
Above are the 5 top-rated investment platforms in the UK. Before investing in any platform, you must look into the factors you need to know. Reading each platform’s instructions and rules is necessary before investing in any platform. It is advised to do a check before investing whether it is suitable for you or not.
