Investing can be an effective way to grow your money over time, but with so many platforms available, choosing the right one can be overwhelming—especially if you're a beginner. The good news? Investment apps have made it easier than ever to get started, even with minimal knowledge. In this guide, we’ll explore the best investment apps for beginners in the UK, covering key features, fees, and how to choose the best one for your needs.
Why Use an Investment App?
Investment apps offer a simple, accessible way to start investing without needing a large sum of money. They provide user-friendly interfaces, automated tools, and educational resources to help beginners make informed decisions. Here’s why they are a great option:
Low Minimum Investment: Many apps allow you to start investing with as little as £1.
Automated Investing: Robo-advisors can manage your portfolio for you.
Educational Tools: Some apps provide guides and insights to help you learn as you invest.
Diversification: Many platforms offer exchange-traded funds (ETFs) and managed portfolios.
Low Fees: Most investment apps have lower fees than traditional stockbrokers.
Best Investment Apps for Beginners in the UK
1. Freetrade – Best for Commission-Free Investing
Freetrade is a great option for beginners who want to buy and sell shares without paying commission fees. It offers an easy-to-use interface and a range of investment options, including stocks, ETFs, and investment trusts.
Pros:
Commission-free trades
User-friendly mobile app
Fractional shares available
Cons:
Limited research tools
No access to foreign exchanges
Fees:
Free basic account
£4.99/month for the Plus account (offers more stocks and advanced features)
2. Trading 212 – Best for Stocks and ETFs
Trading 212 is another commission-free trading app that allows users to invest in a wide range of stocks and ETFs. The app also offers a ‘Practice Mode,’ where you can use virtual money to learn how trading works before investing real funds.
Pros:
Commission-free stock and ETF trading
Fractional shares available
Easy-to-use mobile app
Cons:
Limited account types (no pension or ISA option)
Customer support can be slow
Fees:
No trading fees
Currency conversion fee: 0.15%
3. Nutmeg – Best for Hands-Off Investing
Nutmeg is a robo-advisor that automatically manages your investments for you based on your risk tolerance. It’s an excellent choice for beginners who prefer a hands-off approach.
Pros:
Automated investing tailored to your risk level
Investment ISAs and pensions available
Transparent fee structure
Cons:
Higher fees compared to DIY platforms
No direct stock trading
Fees:
0.75% per year for portfolios under £100k
0.35% per year for portfolios over £100k
4. Moneybox – Best for Round-Up Investing
Moneybox is ideal for those who struggle to save and invest consistently. It rounds up your everyday purchases and invests the spare change in a diversified portfolio.
Pros:
Round-up feature makes investing effortless
Investment ISAs and pensions available
Good educational content
Cons:
Small investment amounts mean slow portfolio growth
Monthly subscription fee
Fees:
£1 monthly subscription fee (free for the first three months)
Platform fee of 0.45% per year
5. Wealthify – Best for Ethical Investing
If you’re looking for an ethical investment option, Wealthify offers a range of socially responsible portfolios. It’s a robo-advisor that automatically manages your investments based on your risk preference.
Pros:
Ethical investment options available
No minimum investment required
User-friendly interface
Cons:
No direct stock trading
Limited control over individual investments
Fees:
0.6% annual management fee
How to Choose the Best Investment App for You
With so many options available, it’s essential to choose an investment app that aligns with your goals. Here are some factors to consider:
Investment Goals: Are you looking for long-term growth, passive investing, or stock trading?
Fees: Check for account fees, trading fees, and withdrawal fees.
Investment Options: Some apps focus on stocks, while others offer ETFs, ISAs, or pensions.
Ease of Use: Beginners should look for an intuitive and easy-to-navigate platform.
Customer Support: Ensure the app provides reliable customer service in case you need assistance.
FAQs
1. What is the best investment app for beginners in the UK?
The best app depends on your needs. Freetrade and Trading 212 are excellent for commission-free stock trading, while Nutmeg and Wealthify are ideal for hands-off investing.
2. Do I need a lot of money to start investing?
No, many investment apps allow you to start with as little as £1, making investing accessible to everyone.
3. Are investment apps safe?
Yes, most reputable investment apps are regulated by the Financial Conduct Authority (FCA) and use encryption to protect your data.
4. Can I withdraw my money anytime?
Yes, but it depends on the app and investment type. Some investments, like stocks, can be sold quickly, while others, like pensions, have restrictions.
5. Should I choose a robo-advisor or DIY trading app?
If you want a hands-off approach, a robo-advisor like Nutmeg or Wealthify is ideal. If you prefer to pick your own stocks, a DIY trading app like Freetrade or Trading 212 is better.
Final Thoughts
Investment apps have revolutionised the way people invest, making it easier and more accessible than ever. Whether you're looking for a hands-off approach with a robo-advisor or want to actively trade stocks, there’s an app to suit your needs. Before choosing, consider fees, investment options, and ease of use to ensure you’re making the best decision for your financial future.
Subscribe for more tips! Subscribe to our newsletter
Disclaimer: Smart With Money may receive compensation from affiliate links, advertisements, and partners featured on this site. This compensation does not influence our editorial content, reviews, or recommendations. Our opinions are our own, and we aim to provide accurate and objective financial information to help you make informed decisions.
Additionally, all content provided on SmartWithMoney.co.uk is for informational purposes only and does not constitute financial advice. Please seek independent financial advice before making any financial decisions.