What is the best investment platform?

Fees can substantially eat into your investment gains and are therefore worthy of careful consideration when selecting which platform to invest with. Below I have provided you with a visual aid of how these platforms would compare on cost.

Remember, that fees should not be your only consideration. The main purpose of investing in an investment platform is to grow your money as much as possible. In this respect, the assets offered, and the performance of the ready-made portfolios on offer will also be relevant.

If you don’t have the confidence/time to choose your own investments or are simply seeking a more ‘hands-off’ approach, then you may want to consider the fully managed portfolios on offer.

But how do you know that the portfolio you are considering will provide you with decent returns? The answer is… you don’t! However, we can look at how well these platforms have managed their portfolios in the past 5 years. As you can see, results have been variable, but try to remember that the eToro option is very undiversified and therefore presents a big risk to your capital.

Investment platforms offer retail investors (people like you and I who are not professionals) the opportunity to avoid the fees associated with financial advice and take control of their investment portfolio.

Now it’s important to understand that this does not mean you need prior knowledge of investing to use one. Different investment platforms are suitable for different levels of experience. Some cater to complete beginners and simply ask you a few basic questions in order to match you with your investments which they then monitor and manage on your behalf at a fraction of the cost of a traditional wealth manager. This would include Moneybox and InvestEngine.

Other platforms focus on offering all the assets and choices that a more experienced investor could require so they have a decent range of securities and sectors from which to build a diversified portfolio. Trading 212 and AJ Bell would be a good fit for the purpose here.

Then, there are trading platforms that use cutting-edge technology to allow for instant buying and selling of securities so users can make quick adjustments in response to changes in the marketplace. eToro has an extensive range of assets and commission-free trading for this purpose. Just beware of the 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.

Investment platforms are sometimes referred to as fund supermarkets. They will usually offer funds, stocks, A commodity is any basic raw material that can be bought and sold, for example, copper, silver, oil or coffee.commodities, ETFs, investment trusts, forex, and bonds to name a few. There are also a range of account types that can be utilised including tax wrappers such as 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 ISAISAs and Pension accounts.

That’s actually pretty straightforward. First and foremost, think about your level of experience and knowledge when it comes to investing. We all need to start somewhere but are you happy to take risks with your money or would you rather leave the tough decisions to a professional? Moneybox and InvestEngine both offer the kind of service that a complete novice can happily sail through.

Trading 212 and AJ Bell are more suited to investors with a little know-how and both are well-priced as well as offering a decent range of investment options and research.

Cost is always a factor, but you won’t get recommended anything that is overcharging here. We factor in platform fees, management fees, 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, all the fees, before we even consider recommending a platform. The only platform on my list that has fees you should be aware of is eToro’s FX fee. It’s somewhat eye-watering so make sure you take steps to protect yourself from that if eToro is tickling your fancy.