Best Investment Platform – including exclusive analysis of fully managed portfolio performance

Antonia says

This is a somewhat controversial choice of platform for this list. Firstly because eToro can not be considered low-cost. Yes, they market themselves as being commission-free, but the base currency is USD here which means you are going to get stung by some really hefty A foreign exchange (FX) fee is added to all trades involving foreign currencies. If you buy a stock that trades in US dollars, for example, and your home account is in GB pounds, you’ll need to pay an FX fee.FX fees (although if you open an eToro Money account you can avoid those fees). Also, they are considered more of a trading platform than an investment platform.

However, I’ve put them in, as they have one feature, that could really benefit those looking for a higher-risk investment with the potential of greater returns. And the best part is that you need zero investment experience. But you do need to understand the risks involved here.

eToro has a range of ready-made portfolios, which have outperformed the industry average across the past 5 years by a substantial margin. There is one portfolio in particular that has provided returns of 230.2% across the past 5 years which none of the other industry portfolios are coming close to achieving. In fact the industry average is 26.4%.

It’s called Four Largest Tech Giants – @Four-Horsemen and before I go any further, I am not advising you to invest in this portfolio. There are only 4 equities held here, Google, Amazon, Microsoft, and Apple which is how this portfolio has managed to achieve these returns. However, in no way can this be considered diversified and I would only suggest investing here as part of a wider, more strategic investment portfolio, or, if you don’t mind losing some, or all of your money. Remember, historical performance can never guarantee future returns.

eToro is also the number one platform for copy trading, where investors can choose to automatically copy the trades of experienced and successful investors.

Use this if

• You are happy to assume a high level of risk
• You would like the chance to own some stock from the 4 tech giants at an affordable price
• You are happy to take additional steps to avoid the FX fees at eToro

Fees

• 0% commission on stocks
• Competitive spreads
• £0 management fees on ready-made portfolios
• 1.5% FX fee
• $5 withdrawal fee
• Inactivity fee after 12 months

Assets

• Stocks
• Indices
• ETFs
• Currencies
• A commodity is any basic raw material that can be bought and sold, for example, copper, silver, oil or coffee.Commodities
• Cryptocurrencies

Antonia says

This is the most cost-effective way to invest. The only fee you have to deal with here is the fund fee and there is simply no getting away from that. But, by eliminating the account fees, commissions, A foreign exchange (FX) fee is added to all trades involving foreign currencies. If you buy a stock that trades in US dollars, for example, and your home account is in GB pounds, you’ll need to pay an FX fee.FX fees, inactivity fees, and any other hidden fees platforms like to slap on, you really are getting the most bang for your buck.

So what’s the catch? Firstly, you need to invest in ETFs because that’s all they have here. I’m a fan of ETFs so no issue there. Secondly, in order to avoid portfolio fees, you need to choose your own ETFs to invest in. So, this can be the sticking point for a lot of people who don’t have the experience or confidence to pick.

Cost, past performance, and risk level are some of the factors that you should consider. At InvestEngine you get access to the key investor information document which should help you decide.

Use this if

• You are looking for a low-cost, simple way to invest
• You are happy to invest in ETFs

Fees

• No account fees
• No trading fees
• 0.25% for managed portfolios
• ETF fees starting at 0.05% per year
• Average ETF charge for managed portfolios: 0.15% per year
• Market spreads average: 0.07% per year

ETF Investments

• ESG is an investment approach that takes environmental, social and ethical governance factors into account alongside more traditional financial factors.ESG
• Thematics
• Dividend focused funds
• Emerging markets
• Small cap

Antonia says

AJ Bell successfully bridges the gap between new investors and experienced investors, making this a great choice for anyone who is just starting out with investing but would like to learn more about it.

In fact, the ready-made portfolios, that have delivered above-average returns, could be a good starting point for new investors while they get to grips with the market. Then once comfortable, investors could take more of an active role in choosing which assets to include in their portfolios.

Use this if

• You want low fees that won’t eat into your investment gains
• You lack the confidence to pick your own investments and would benefit from access to ready-made portfolios that have outperformed the industry average.

Fees

Custody charges

• 0.25% (max £10 per month) for shares/ETFs
• 0.25% – 0.10% for funds (0% for funds over £500k)

Annual ongoing charges

• 0.31% for Growth funds
• 0.45% for Responsible Growth fund
• 0.65% for Income funds

Share dealing fees

• 0.31% for Growth funds
• 0.45% for Responsible Growth fund
• 0.65% for Income funds
• Standard share dealing charge: £5.00
• Frequent shares dealing charge (10 or more trades in the previous month): £3.50
• Funds dealing charge: £1.50
• AJ Bell fund: no dealing charge

Investments

• Stocks
• Bonds and gilts
• A commodity is any basic raw material that can be bought and sold, for example, copper, silver, oil or coffee.Commodities
• ETFs
• Ready-made portfolios

Antonia says

This isn’t the lowest cost option, however, our analysis of portfolio performance has revealed that your investments would historically have still done well here.

The range of account options is brilliant, with the best performing Sometimes called an investment ISA, a stocks and shares ISA is an individual savings account that allows you to invest in shares, unit trusts, investment funds, and bonds. You will not need to pay tax on any income or capital gains earned on investments within an ISAISA and Lifetime ISAs (Individual Savings Accounts) (LISAs) are designed to help you save for your first home or retirement and come with an automatic 25% government bonus on all contributions up to the value of £4,000. There are stocks and shares LISAs – where you invest your savings – and cash LISAs – where you earn interest on your savings. You must be between 18 and 40 to open a LISA and all income, capital gains and interest earned within LISAs is tax-free, although these funds can only be used to purchase your first home or for retirement. Ensure you are familiar with the rules surrounding this account before utilising itLifetime ISA, one of the best interest rates on a A cash ISA is a type of individual savings account where you can earn tax-free interest on your saved cashCash ISA, and a personal pension that has performed well against its peers, all available via the £1 monthly subscription fee.

If you historically have found it difficult to save enough to invest then the round-up feature will build a tidy pot for you without you really noticing. It’s also a cinch to use, and my endorsement lies in the fact that I have retained my own account on this app.

Use this if

• You are seeking a Lifetime ISA to save for your first home
• You historically find it difficult to save and would benefit from round-ups and payday boosts
• You like the additional option of being able to choose your own investments
• You are looking for the best returns on a A ready-made portfolio is a pre-made collection of investments that have been put together by investment experts. They are designed to be a simple option for those who don’t want to choose individual stocks or funds for themselves.ready-made portfolio in an ISA or pension

Fees

• £1 subscription fee after the first 3 months
• 0.45% platform fee
• Annual fund provider costs 0.09% – 0.88%
• 0.45% A foreign exchange (FX) fee is added to all trades involving foreign currencies. If you buy a stock that trades in US dollars, for example, and your home account is in GB pounds, you’ll need to pay an FX fee.FX fee for US stocks

Investments

• A ready-made portfolio is a pre-made collection of investments that have been put together by investment experts. They are designed to be a simple option for those who don’t want to choose individual stocks or funds for themselves.Ready-made portfolios
• US Stocks
• Fractional shares are portions of shares (or ETFs) that are smaller than one whole share. They are designed to make ownership of large, expensive shares more accessible. Fractional shares
• Tracker funds
• ETFs

Antonia says

I use this app myself, partly for its exceptional value and partly because they have managed to keep it uncomplicated while still providing good access to research.

If you want to gain access to big ticket shares such as Alphabet or Nividia, then this is the place to come to as the low fees and fractional shares make this very affordable.

At the time of writing, interest at Trading 212 was at 5.2% which is more than I’ve encountered at any other platform.

This is a nice little step up for fairly new investors who want to start taking more control over what they are investing in.

Use this if

• You would like to choose your own investments or would like access to fractional shares of high-value stocks
• You are looking for a cost-effective way to invest

Fees

• 0.7% – 1.15% for portfolios ranging from fully managed to fixed allocation.

Investments

• Ready-made portfolios
• Socially responsible investing
• Thematic Investing

Antonia says

If you’re looking for a ready-made portfolio, Barclays’ funds have achieved better than industry average returns over the past five, and ten, years with their Global Markets (Adventurous) Fund doing particularly well.

Customer service for investment clients is excellent with an attentive support team available by phone. Costs, particularly for those with larger portfolios, are good, with Barclays being one of the top-performers for fees on international stocks in the large portfolio category. If your portfolio is smaller, however, you may find the FX fees and dealing fees are too high to justify.

You’re getting the benefits of a global banking titan with strong research and education departments, and unlike many other high street banks, you don’t need to be an existing banking customer to invest here.

Use this if

You are an existing Barclays customer and you want to invest large sums in international stocks, or you want an historically high performing ready-made portfolio.

Fees

Annual fees
Up to £200,000: 0.25% of your investment value
Over £200,000: 0.05% of your investment value

Dealing fees
£6 per trade (Funds are free to trade)

FX fees
First £5,000: 1%
£5,000 – £10,000: 0.75%
£10,000 – £25,000: 0.5%
£25,000 – £250,000: 0.25%
Value over £250,000: 0.1%

Investments

UK stocks
US stocks
European stocks
Exchange-traded funds
Mutual funds
Bonds and gilts
Ready-made portfolios