Investing your money is a great opportunity to take control and get returns from your hard-earned savings. If you’re new to investing it can be hard to know where to start and what to do, but there are some great investment platforms out there ready to help, while our free comparison tools can help you identify the right one. It’s all about finding the best fit for your investing needs.
So, what should you be looking for in an investment platform?
Approach
Platforms vary in how they invest your money. Talking to a person is part of the process for some, while for others everything is fully digital with no human interaction. Decide which approach you are comfortable with and choose a platform that suits your preference.
Education
Platforms offer a range of learning material in the form of video clips, infographics and guides. Look for a platform that offers education in the way you want to digest it and with the level of guidance and insight that you want. The depth and quality of educational materials can vary significantly, so for some people this could be a vital consideration.
Support and service
If you have a problem or question, do you want to talk to a human being on the phone, or message someone on a live chat? Or do you want a range of different options? Review websites such as Trustpilot can be useful for an idea of customer experiences of soft factors such as service.
Accessibility
Is keeping track of your account and/or making changes when you are out and about important to you? If yes, look for a platform that offers a mobile app (and check the app store for reviews).
Right, let’s move on to the actual platforms. Here are the platforms we think are the best options for those new to investing (in no particular order).
Moneyfarm
Moneyfarm is what’s known as a robo-adviser and it harnesses technology to help customers get started with investing. After you spend a few minutes filling out an online questionnaire, it matches you to suitable investments. The firm also has expert investment consultants to advise customers who need extra help, and an asset allocation team who actively manage its portfolios. On top of that, Moneyfarm offers a range of support for customers via phone, email or the online chat facility.
interactive investor
The big feature separating interactive investor from its peers is that it charges flat pounds-and-pence fees in an industry where percentage-based charging is the dominant structure. While this doesn’t work out well if you’re investing smaller amounts, its Essentials account is designed for those starting out on their investment journey. The Investor Essentials plan (for investors with less than £50,000) costs £4.99 a month, while its Sipp costs £12.99 a month. All interactive investor‘s plans allow you to invest as little as £25 a month using a free regular investing service. A strong all-rounder with a great investment range and options designed for investor needs.
Hargreaves Lansdown
Hargreaves Lansdown is one of the biggest names in the industry. One of the best things about the platform is the material it produces, with a wide range of how-to guides, investing articles, blogs and educational material. The topics go beyond investing, covering other related subjects like personal taxation, meaning it will satisfy the needs of the most information-hungry investor. Costs are competitive if you have a decent amount invested in shares or ETFs, but trading charges will add up quickly for smaller investors. If you’re looking for a large, established firm and education is a priority, then Hargreaves Lansdown might be the platform for you.
Trading 212
Trading 212 is among the 0% commission brokers that have emerged in recent years to drive down costs and make investing even more accessible. Trading 212 are an app-only service with a minimum investment of £1 and low charges, with a choice of a general investing account or an ISA. You can buy individual shares, but the fund options are limited to Exchange Traded Funds (ETFs) and there’s no Self-Invested Personal Pension (Sipp). Other fees may apply. See terms and fees.
Bestinvest
The Bestinvest platform majors on coaching and support. It’s unique as it offers free investment coaching with a qualified financial planner, with no obligations, to all customers. It’s on a mission to help support and educate investors, offering a very wide range of educational material in a host of formats. Bestinvest offers a range of ready-made portfolios for customers who want someone to make investment choices for them, but it also offers full flexibility for customers who want to make the choices themselves.
AJ Bell Dodl
Dodl is an app-only investment service offered by platform heavyweight, AJ Bell. Everything in the app is stripped back to keep any choices simple, making it a great option for new investors looking to dip their toe in for the first time. This means its investment choice is narrower than some other platforms, but it includes AJ Bell ready-made portfolios if you want them to run the investments for you. While Dodl doesn’t have the online or telephone support of other platforms, it’s an easy to use, low-cost option for those that want to keep investing simple.
If you want to know more about these platforms and others in the market, or even the basics of investing, you can find all you need at Compare+Invest, including our free platform comparison tools.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
Image by massimilianocoperchini from Pixabay
