7 Best Investment Platforms for Beginners: How to Grow Your Money.

Investment Opportunities for Everyone

According to The Sun: Investing has become accessible not only for those with luxury yachts or sports cars – now anyone can engage in it, and it is essential to start as soon as possible for your money to have a chance to grow.

Today, investing has become simpler, but many people may not know where to start. In this article, we will discuss how to quickly start making money using seven of the best platforms for beginners.

When choosing an app, it is essential to consider several factors: fees, ease of use, and the variety of investments.

Some platforms allow you to invest in individual companies, while others offer ready-made portfolios for those who prefer a more passive approach.

No matter your choice, the most important thing is that your platform is under the oversight of the Financial Conduct Authority and part of the Financial Services Compensation Scheme (FSCS), which protects your funds in case the company goes bankrupt.

Account and Tax Benefits

When opening an account, a stocks and shares ISA (Individual Savings Account) is usually the best option. You can invest up to £20,000 a year, and any profits will be tax-free.

You can start with just £1 – however, the size of your return will depend on the amount of investment and the chosen investments.

For instance, if you choose a low-risk fund and invest £10 a month for 20 years, your assets could grow to £3,291 at a 3% annual growth rate.

This happens due to compound interest: you earn interest not only on the initial investment but also on previously earned interest.

Funds with a cautious strategy invest less in the stock market and more in government bonds and gold, which are considered less risky.

And if you are willing to take more risks, you can choose an 'adventurous' fund, where most of your capital will be invested in stocks.

By investing £10 a month for 20 years, you could increase your assets to £5,929. If you save £20 a month, your savings could reach £11,859 – not bad for long-term savings.

Experts recommend having savings equivalent to at least six months of salary before starting to invest. And remember: only invest money that you are prepared to lose.

Best Apps for Beginners

1. Wealthify

This app stands out for its simplicity, which is perfect for those who do not want to delve into complex terminology. You can open an ISA for £1 and start pension saving with £50.

The platform offers five risk levels, each with a ready-made investment portfolio that includes stocks, government bonds, and real estate.

The fee is 0.6% per year, plus investment costs – 0.16% for the standard portfolio or 0.7% for the ethical one.

• Pros: Simplicity and the ability to start with £1.
• Cons: Limited investment options for more experienced investors.

2. Dodl

With Dodl, you can set up a regular payment starting at £25 a month or invest a one-time amount starting from £100.

It offers various ready-made investment funds or the option to choose individual stocks.

The app also allows you to invest by themes, such as startups from developing countries or robotics and AI technologies.

The fee is 0.15% per year plus investment costs.

• Pros: Managed by financial manager AJ Bell. The app offers 4.32% on unused funds.
• Cons: Costs can be high for those planning to invest small sums.

3. Nutmeg

Nutmeg has become one of the first platforms to offer ready-made investment portfolios.

You can choose a risk level from 1 to 10. The management fee is 0.65% per year.

• Pros: A variety of resources for managing personal finances.
• Cons: Minimum investment is £100 to open an account.

4. Moneyfarm

By choosing Moneyfarm, you will get managed funds with various risk levels.

• Pros: Clear explanation of the investment process.
• Cons: High minimum investment of £500.

5. Moneybox

Moneybox allows you to open an account from £1, which is suitable for beginners.

• Pros: Affordable and understandable investment offerings and rounding function.
• Cons: The most expensive option among those listed.

6. Trading 212

This platform is more suitable for those who want to choose their own investments.

• Pros: User-friendly.
• Cons: Not suitable for complete beginners.

7. Invest Engine

Invest Engine specializes in ETFs.

• Pros: Very low costs.
• Cons: A large selection can be somewhat intimidating for beginners.

Experience of a Real Investor

‘My investment of £10 a week has grown to £15,000’

ANDRIY opened an account with Moneybox in 2016.

“I had never seen a company offering such an opportunity before. I believe the idea of saving a little is fantastic” – says Andriy, 50.

He started with a debit card with a savings account and later opened an ISA for stocks, choosing ethical investments.

Today, Andriy saves £10 a week and adds more when he has the opportunity. After eight years, he now has around £15,000.

He recently transferred his money to a Cash ISA, as he may want to access it in the near future.