Best Investment Apps in the UK

In a world where financial markets are more accessible than ever, navigating the sea of investment options can be overwhelming. Whether you're a seasoned investor or a complete beginner, having the right investment app can make a significant difference in your financial journey.

In this guide, we'll explore the top investment apps in the UK, breaking down their features, fees, and unique offerings to help you make informed investment decisions.

Why Invest Using Apps?

Investment apps have revolutionized the way people engage with financial markets. Here are some compelling reasons to consider using investment apps in the UK:

• Convenience and Accessibility Investment apps provide the convenience of managing your portfolio anytime, anywhere. With a few taps on your smartphone, you can access a wide range of financial instruments, from stocks and ETFs to cryptocurrencies and commodities.

• User-Friendly Interfaces Most investment apps are designed with user-friendly interfaces, making them accessible even to those without prior investment experience. This ease of use is crucial, especially for beginners looking to enter the world of investing.

• Diverse Investment Opportunities The best investment apps offer a diverse range of investment opportunities. Whether you're interested in stocks, forex, cryptocurrencies, or commodities, these apps provide access to a multitude of markets.

• Cost-Effective Trading Many investment apps offer commission-free trading on stocks and ETFs, making it cost-effective for investors to build and manage their portfolios without the burden of hefty fees.

Now that we understand the advantages of investment apps, let's delve into the details of some of the best options available in the UK.

1. eToro

If you're a beginner looking for a seamless introduction to the world of investing, eToro stands out as an excellent choice. With over 30 million users globally, eToro has established itself as a user-friendly platform that caters to investors of all levels.

Key Features:

• User-Friendly Interface: The eToro app is designed with simplicity in mind, ensuring that even those with no prior experience can navigate the platform effortlessly.
• Diverse Asset Selection: From stocks and ETFs to cryptocurrencies like Bitcoin and Ethereum, eToro provides access to a diverse range of financial instruments.
• Commission-Free Trading: eToro allows users to trade stocks and ETFs without incurring any commission fees, making it an attractive option for cost-conscious investors.
• Copy Trading: For beginners seeking guidance, eToro's copy trading feature enables users to replicate the trades of successful investors, providing a learning opportunity.
• Low Minimum Deposit: With a minimum deposit requirement of $10 (approximately £8), eToro ensures accessibility for investors with varying budgets.

Drawbacks:

• Deposit Fee on GBP Payments: Users should be aware of a 0.5% deposit fee on payments in GBP.

Note: eToro is a multi-asset investment platform, and the value of investments may go up or down. Copy Trading does not amount to investment advice.

2. XTB

For active traders looking to engage in Contracts for Difference (CFDs), XTB emerges as a top choice. Specializing in CFDs, XTB offers a wide array of markets and competitive trading fees.

Key Features:

• CFD Specialization: XTB focuses on CFD trading, allowing users to speculate on the price movements of various assets without owning them.
• Extensive Market Coverage: With over 2,100 stocks and ETFs, XTB provides access to markets across the UK, US, and several leading European exchanges.
• Commission-Free Trading: XTB offers commission-free trading on all UK and international markets, making it cost-effective for traders.
• Leverage Options: Traders can benefit from leverage on supported markets, such as up to 1:5 for stocks and 1:30 for forex.
• Free Demo Account: XTB offers a free demo account for users to practice CFD trading with virtual funds before transitioning to a real money account.

Drawbacks:

• Limited Range of Emerging Market Stocks: XTB's offerings may be limited for those specifically interested in emerging market stocks.

Note: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

3. AvaTrade

AvaTrade positions itself as an attractive option for those interested in spread betting, especially for UK investors seeking tax-free profits.

Key Features:

• Spread Betting: AvaTrade is renowned for its spread betting offerings, allowing users to speculate on asset price movements without owning the underlying assets.
• Tax-Free Profits: Spread betting on AvaTrade is tax-free in the UK, making it a preferred choice for tax-efficient trading.
• Diverse Asset Classes: AvaTrade supports a wide range of assets, including stocks, forex, indices, commodities, bonds, and options.
• Leverage Options: Traders can apply leverage to spread betting markets, with UK traders capped at 1:30.
• Proprietary App Software: AvaTrade's proprietary app software supports chart analysis and fundamental news, providing essential tools for traders.

Drawbacks:

• Minimum Deposit of £100: Users should be aware of a minimum deposit requirement of £100.

Note: 76% of retail investor accounts lose money when trading CFDs with this provider.

4. Trade Nation

Trade Nation distinguishes itself with commission-free trading, fixed spread costs, and a user-friendly interface, making it an appealing choice for traders seeking simplicity.

Key Features

• Commission-Free Trading: Trade Nation allows users to trade stocks and ETFs without incurring any commission fees.
• Fixed Spread Costs: With a fixed spread of $0.02 for opening and closing trades, users can easily understand their trading costs.
• Intuitive Mobile Applications: Trade Nation's mobile applications on both Google Play and iOS are user-friendly and integrate seamlessly with the wider ecosystem.
• Negative Balance Protection: Trade Nation offers negative balance protection, ensuring users don't lose more than their account balance.
• Wide Range of Payment Methods: Trade Nation supports various payment methods, including debit/credit cards, ensuring flexibility for users.

Drawbacks:

• Limited Offerings: While Trade Nation provides over 600 instruments, it might have a more limited range compared to some larger providers.

Note: 74% of retail investor accounts lose money when trading CFDs with this provider.

5. Admirals

With over 20 years in the industry, Admirals offers a comprehensive range of products and services, catering to both FX traders and regular investors.

Key Features:

• Large Asset Selection: Admirals provides access to over 8,000 instruments, including stocks, ETFs, digital currencies, indices, and FX.
• Investment and CFD Options: Unlike many providers, Admirals offers both CFDs and outright investment options, allowing users to choose their preferred approach.
• Advanced Trading Platform: The MetaTrader 4 and MetaTrader 5 platforms are available, providing advanced charting and analysis tools for experienced traders.
• Low Spreads: Admirals boasts low spreads, enhancing cost-efficiency for users engaged in frequent trading.
• Regulation and Safety: Regulated by reputable authorities, Admirals ensures a secure trading environment for its users.

Drawbacks:

• Inactivity Fee: Admirals imposes an inactivity fee of £10 per month after 24 months of inactivity.

Note: 77% of retail investor accounts lose money when trading CFDs with this provider.

6. Interactive Investor

For investors seeking a platform with a flat fee structure and a wide range of investment options, Interactive Investor stands as a prominent choice.

Key Features:

• Flat Fee Structure: Interactive Investor offers a straightforward pricing model with a flat fee, making it transparent for investors.
• Wide Range of Investments: Users can choose from over 40,000 UK and global stocks, funds, investment trusts, and more.
• Regular Investment Discounts: Regular investors benefit from discounts on the platform, reducing costs for those consistently contributing to their portfolios.
• Award-Winning Platform: Interactive Investor has received recognition for its platform, solidifying its position as a reputable investment service.
• Educational Resources: The platform provides educational resources for investors, supporting those looking to enhance their financial knowledge.

Drawbacks:

• Higher Trading Fees: While the flat fee structure can be advantageous for larger portfolios, it may be less cost-effective for small investors.

7. Revolut

Known for its multi-faceted financial services, Revolut has expanded its offerings to include commission-free stock trading, making it a versatile option for those seeking a holistic financial platform.

Key Features:

• All-in-One Platform: Revolut combines banking, budgeting, and investing in a single platform, providing a comprehensive financial solution.
• Commission-Free Stock Trading: Users can trade stocks without incurring commission fees, enhancing cost-effectiveness.
• Fractional Shares: Revolut supports fractional shares, allowing investors to buy and own a portion of high-priced stocks with smaller investments.
• Cryptocurrency Trading: In addition to stocks, Revolut enables users to trade cryptocurrencies, adding a layer of diversification to their portfolios.
• Sleek User Interface: The app's intuitive design ensures a seamless user experience for both novice and experienced investors.

Drawbacks:

• Limited Investment Options: While Revolut offers stocks and cryptocurrencies, the range of available assets is more limited compared to dedicated investment platforms.

8. Trading 212

With a commitment to commission-free investing and a user-friendly interface, Trading 212 has gained popularity among investors looking for a straightforward and cost-effective platform.

Key Features:

• Commission-Free Trading: Trading 212 allows users to invest in a variety of assets without incurring commission fees.
• Fractional Shares: The platform supports fractional shares, enabling users to invest in high-value stocks with smaller amounts of capital.
• User-Friendly Interface: The intuitive design of the Trading 212 app makes it easy for users to navigate and execute trades seamlessly.
• Wide Range of Assets: Investors can access a diverse range of assets, including stocks, ETFs, forex, and cryptocurrencies.
• AutoInvest Feature: Trading 212's AutoInvest feature automates the investment process, allowing users to set up recurring investments in their chosen assets.

Drawbacks:

• Currency Conversion Fees: Users should be mindful of currency conversion fees when trading assets denominated in a different currency.

9. IG

Established in 1974, IG has a long-standing reputation in the UK financial industry, offering a wide range of investment options with a focus on stocks, funds, and trusts.

Key Features:

• Extensive Asset Coverage: IG supports investments in over 12,000 stocks, funds, and trusts, providing users with a diverse array of options.
• Competitive Pricing: With a pricing system based on monthly trading volumes, IG offers competitive rates for both UK and international investments.
• Instant Fund Deposits: Users can deposit funds instantly using debit/credit cards or e-wallets, streamlining the funding process.
• Regulatory Coverage: IG is regulated and covered by the Financial Services Compensation Scheme (FSCS), providing an added layer of security.

Drawbacks:

• Minimum Deposit Requirement: A minimum deposit of £250 may pose a barrier for some investors.
• Currency Conversion Fees: Debit/credit card payments come with currency conversion fees, potentially impacting the overall cost.

10. Hargreaves Lansdown

For investors prioritizing user-friendliness and the ability to invest through Stocks and Shares ISAs, Hargreaves Lansdown stands out despite its higher fees.

Key Features:

• User-Friendly Interface: Hargreaves Lansdown provides a user-friendly investment app, catering to both beginners and experienced investors.
• Stocks and Shares ISAs: The platform supports Stocks and Shares ISAs, offering tax-efficient investment options for UK residents.
• Diverse Investment Options: Investors can choose from a wide range of investment options, including stocks, funds, and trusts.
• Regular Trading Discounts: While the standard commission is £11.95, users can benefit from reduced fees by trading more frequently.

Drawbacks:

• Higher Commission Fees: Hargreaves Lansdown charges relatively higher commission fees, with potential reductions available for active traders.

Conclusion

Choosing the right investment app is a crucial step in your financial journey. Each of the mentioned platforms comes with its own set of features, fees, and target audiences. Whether you're a beginner looking for simplicity, an active trader seeking diverse CFD options, or a long-term investor focusing on tax-efficient solutions, there's an app tailored to your needs.

Before making any decisions, it's essential to assess your investment goals, risk tolerance, and preferred asset classes. Additionally, staying informed about market trends and conducting thorough research can contribute to making sound investment decisions.

Remember, all investments carry risks, and past performance is not indicative of future results. It's advisable to start with a clear investment strategy, diversify your portfolio, and, if necessary, seek advice from financial professionals.

Now, armed with the knowledge of the best investment apps in the UK, you're ready to embark on your investment journey. Choose wisely, stay informed, and may your investments thrive in the dynamic world of financial markets.