Choosing the Right Investment App
The UK investment app market has exploded in recent years, giving investors more choice than ever. Whether you want to invest £25 a month or manage a six-figure portfolio, there's an app designed for your needs.
The right choice depends on what you're investing in (shares, funds, ETFs, crypto), how much you're investing, and what features matter most to you (low fees, research tools, ISA/SIPP wrappers, or simplicity).
What to Compare
When evaluating investment apps, focus on these criteria:
- FCA regulation — Every legitimate UK investment app must be authorised by the Financial Conduct Authority
- Fees and charges — Platform fees, trading commissions, FX conversion charges, and withdrawal fees
- Investment range — UK shares, US shares, ETFs, funds, bonds, crypto
- Tax wrappers — ISA and SIPP availability
- FSCS protection — Your cash and investments are protected up to £85,000 if the platform fails
- User experience — App quality, educational content, and customer support
Categories of Investment Apps
UK investment apps broadly fall into these categories:
- Traditional platforms — Hargreaves Lansdown, AJ Bell, Interactive Investor. Comprehensive but higher fees. Best for larger portfolios and ISA/SIPP management.
- Commission-free platforms — Trading 212, Freetrade, InvestEngine. Low or zero trading fees. Best for beginners and cost-conscious investors.
- Robo-advisers — Nutmeg, Wealthify, Moneyfarm. Automatic portfolio management. Best for hands-off investors.
- Multi-asset platforms — eToro, Revolut. Stocks, crypto, and more in one app. Best for those wanting variety.
Fee Comparison
Fees have the biggest impact on long-term returns. Here's how UK platforms typically charge:
- Platform fees — Annual charges on your total portfolio value. Range from 0% (Trading 212) to 0.45% (Hargreaves Lansdown for funds).
- Trading commissions — Per-trade charges. Range from £0 (Freetrade, Trading 212) to £11.95 (Hargreaves Lansdown).
- FX fees — Charges for buying US or international shares. Range from 0.15% to 1.5%. This is often the hidden cost that catches investors out.
- ISA fees — Some platforms charge extra for ISA accounts (Freetrade: £5.99/month). Others include it free.
ISA and SIPP Considerations
For most UK investors, holding investments in tax-efficient wrappers is essential:
- A Stocks and Shares ISA shelters up to £20,000 per year from Capital Gains Tax and dividend tax
- A SIPP provides tax relief on pension contributions (20-45% depending on your tax band)
- Not all platforms offer both — check before signing up
- Some platforms cap their SIPP fees (Interactive Investor: £12.99/month all-inclusive), which benefits larger portfolios
Tips for Choosing
- Small portfolios (under £10,000) — Prioritise low or zero fees. Commission-free platforms like Trading 212 or Freetrade work well.
- Medium portfolios (£10,000-£100,000) — Balance fees with features. InvestEngine, Vanguard, or AJ Bell offer good value.
- Large portfolios (£100,000+) — Consider flat-fee platforms like Interactive Investor where the fixed monthly charge becomes cheaper as a percentage of your portfolio.
- Active traders — Look for advanced charting, real-time data, and competitive trading fees. Interactive Brokers offers the best tools for active UK traders.
