What's the Best Investment Platform in 2023?

As an investor, the platform you choose makes a huge difference. The functionality, breadth of investment opportunities, user experience and customer support vary widely across the market. Picking the right one is essential.

In this piece, I’ve compared and reviewed the top investment platforms for the UK audience so you can make the right choice for your personal investment goals.

I’ve listed the Trustpilot review score for each platform and added a clear explanation of their fee structure so you know exactly what you’re getting into.

How to choose the ‘best’ investment platform for you?

If you’re new to investing and in the process of researching the different platforms, I recommend you consider the following criteria when making your decision:

1. Investment options: Look for platforms that offer a wide range of investment options, such as stocks, bonds, exchange-traded funds (ETFs), mutual funds, and alternative investments. Additionally, consider whether the platform offers tax-efficient investment wrappers like a SIPP or ISA, as not all platforms provide these. Some platforms also include ready-made portfolios, which are ideal for beginner investors.
2. Fees: Be sure to carefully consider the fees for buying, selling, and holding investments, including account fees, fees, and foreign exchange fees. Some platforms also charge inactivity fees or fees for transferring your assets to another platform.
3. User experience: Look for a platform that has a well-designed and intuitive interface.
4. Research and educational resources: Look for platforms that offer research and analysis tools, such as market data, analyst reports, and investment news, and educational resources like webinars, tutorials, and courses.
5. Security: Look for platforms that use encryption, two-factor authentication, and other security measures to safeguard your data. Additionally, check if the platform is covered by the Financial Services Compensation Scheme (FSCS) or similar schemes, which can offer protection if the platform goes bankrupt or cannot return your assets.
6. Customer support: Consider whether the platform offers multiple ways to get in touch with customer support, such as email, phone, and chat, and whether they have a comprehensive help centre or FAQ section.
7. Reviews & Ratings. Look for platforms that have a good reputation for reliability, performance, and customer service on platforms such as Trustpilot and Reddit.

The 10 Best Investment Platforms in the UK

My top ten investment platforms for a UK audience are as follows:

Overall Best Investment Platform: eToro

The key benefit of eToro is its unique social trading experience, allowing you to copy successful traders’ trades. It also provides various financial instruments, including stocks, ETFs, forex, cryptocurrencies, educational resources, and tools.

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. It’s important to remember this. They make their money from a margin between the buying price and selling price of their assets.

As a downside, you can’t use ISA or SIPP wrappers which may put off some investors.

(76% of retail investor accounts lose money when trading CFDs with this provider)

Best Traditional Investment Platform: Hargreaves Lansdown

With over 1.7 million clients and £123 billion invested for clients, Hargreaves Lansdown is the largest UK investment platform. It offers ISAs, pensions, funds and shares and employs some 2000 people who help it fulfil its mission of ‘unrivalled and evolving client experience.’

In short, Hargreaves Landsdown is a superb traditional broker, offering an old-fashioned level of customer service, security and a huge range of investments.

It is ideal for someone who is going to invest (as opposed to trade) and who doesn’t mind paying the higher fees you’ll find on HL. While the platform has the functionality to set a stop loss, limit orders, receive real-time share alerts and manipulate charts, it definitely can’t compete with some of the advanced trading platforms, such as Etoro, if that’s your interest.

If you’re simply looking to invest safely, securely and with a high level of customer support, HL is the ideal choice.

(capital risk applies)

» MORE Read our full review of Hargreaves Lansdown

Best Investment Platform for Low Dealing Charges: Freetrade

If you’re looking for a platform offering low dealing charges, Freetrade is a great option.

Freetrade is a commission-free investment platform offering a range of stocks, ETFs, and investment trusts, a user-friendly mobile app, and helpful educational resources.

You can have SIPPS and ISAs, which is positive, and there’s no commission share dealing or platform fee if you’re on the basic plan.

The flat fee (as also used by Interactive Investor) is appealing to those platforms that charge a percentage-based platform fee (typically 0.25% to 0.5%) of the value of your portfolio.

Best Investment Platform for Monthly Savers: AJ Bell

 AJ Bell is a highly regarded investment platform that offers a wide range of investment options, including stocks, funds, investment trusts, and ETFs, with the flexibility to make regular investments for as little as £25 per month and with low management fees starting at 0.25% for investments up to £250,000.

They offer a Stocks and Shares ISA, Junior ISA, Lifetime ISA, SIPP, Junior SIPP and a Dealing account.

AJ Bell has also recently launched DODL, which offers a more simplified service with fewer investment options and themed investments. DODL comes with very low fees, such as a 0.15% platform fee and fund costs ranging between 0.31% and 0.45%.

Our verdict: AJ Bell is a well-established, reliable platform ideal for investors with portfolios of up to £100,000. One drawback of using the platform is that it charges a £1.50 fee per fund transaction which may put off some users.

AJ Bell becomes more financially viable if you’re conducting 10 or more transactions per month, taking advantage of its tiered commission structure.

(capital risk applies)

Best Investment Platform for Beginners: Interactive Investor:

Interactive Investor is the leading UK-based flat-fee investment platform offering its clients a range of investment products and services.

Depending on your plan, you’ll pay a monthly account fee, including various free perks. Interactive Investor has a lot of research on the site claiming that their flat fee charging structure could save you ‘up to £45k over 30 years’ compared to some of the more expensive platforms.

(Capital at Risk)

» MORE Read our full review of Interactive Investor

Best Investment Platform for Model Portfolios: Fidelity International

 A leading global investment platform that offers a wide range of investment options and tools, including shares, funds, and ETFs. They also provide personalized investment advice to help individuals reach their investment goals.

(capital risk applies)

Best investment platform at low cost from a big firm: Vanguard

 A low-cost investment platform that offers a range of passively managed funds and ETFs. They are popular among those who prioritize low-cost investments and long-term investment strategies.

(capital risk applies)

Best Investment Platform for Robo Advice: Nutmeg (by J.P. Morgan)

Nutmeg is a robo-advisor service offered by J.P. Morgan in the UK. It provides a digital investment management solution that uses algorithms to create and manage portfolios of exchange-traded funds (ETFs) on behalf of its clients. Clients can choose from a range of portfolios, each with a different level of risk, and can invest in a tax-efficient ISA or general investment account.

Nutmeg aims to make investing simple, accessible, and affordable for all. The platform offers low minimum investment amounts and charges an annual management fee for its services. Nutmeg aims to provide clients with a low-cost, hands-off investment solution by automating the investment process and using low-cost ETFs.

(capital risk applies)

 Best Investment Platform for simple and affordable: Evestor (by Open Money)

Evestor is a robo-advisor service offered by Open Money in the UK. It provides a digital investment management solution that uses algorithms to create and manage portfolios of exchange-traded funds (ETFs) on behalf of its clients. Clients can choose from a range of portfolios, each with a different level of risk, and can invest in a tax-efficient ISA or general investment account.

Best Investment Platform Comparison Table

What are the pros and cons of using an investment platform?

Types of Investment Platforms

Here are some of the most common types of investment platforms for a UK audience.

1. Do-It-Yourself (DIY) Platforms: These platforms are intended for investors who wish to manage their own portfolios. They provide a broad array of investment options, such as shares (stocks), bonds, Exchange Traded Funds (ETFs), and mutual funds. Examples of DIY platforms in the UK include Hargreaves Lansdown and Interactive Investor. Both offer comprehensive tools and resources to support investors in making well-informed decisions.

2. Robo-Advisors: Robo-advisors employ automated algorithms to handle your investments. These digital platforms charge relatively low fees and provide a passive approach to investing, ideal for those who prefer to save on fees and have a hands-off investing style. Some examples of robo-advisors in the UK include Nutmeg and Wealthify. They make investing simple, with pre-set portfolios based on your risk tolerance and investment goals.

3. Full-Service Platforms: Offering a wide range of services, from investment advice to portfolio management and tax planning, full-service platforms cater to investors looking for more comprehensive support. Although they tend to charge higher fees than DIY platforms or robo-advisors, they provide personalized investment advice. In the UK, an example of a full-service platform is St. James’s Place Wealth Management.

In addition to the main types, there are several other investment platforms, such as:

4. Custodial Platforms: Mainly designed to hold investments like stocks, bonds, and ETFs, custodial platforms generally do not offer investment advice or portfolio management services. An example of a custodial platform in the UK is AJ Bell Youinvest.

5. Trading Platforms: For active investors keen on trading stocks, bonds, and other financial instruments, trading platforms provide various features such as real-time market data, execution tools, and margin accounts. Examples of trading platforms in the UK include IG and eToro.

6. Social Trading Platforms: These platforms allow investors to connect, share investment ideas, and even replicate the strategies of successful traders. They offer a unique way to learn about different investment strategies and gain insights from other investors. eToro is also a notable social trading platform in the UK, known for its “CopyTrading” feature.

How to use an investment platform

Here’s how an investment platform works:

1. Open an account: This typically involves providing personal and financial information, such as your name, address, and income.
2. Fund your account: This can typically be done via bank transfer, credit or debit card, or other payment methods.
3. Choose your investments: Investment platforms typically offer a wide range of investment options, including shares, bonds, mutual funds, and ETFs.
4. Buy and sell investments: Once you have chosen your investments, you can buy and sell them through the platform. The platform will facilitate the transaction and manage the settlement of the trade.
5. Monitor your investments: You can monitor the performance of your investments through the platform and make changes to your portfolio as needed.
6. Receive returns: If your investments perform well, you can receive returns in the form of dividends or capital gains. You can withdraw these returns from your account or reinvest them into new investments.

What are the fees and charges associated with using an investment platform?

• Account management fees: Some investment platforms charge a fee for managing your account, ranging from a monthly fee to an annual one.
• Trading fees: Most investment platforms charge a fee for each trade you make, ranging from a flat fee to a percentage of the trade value.
• Withdrawal fees: Some investment platforms charge a fee for withdrawing funds from your account, either to a bank account or a physical check.
• Inactivity fees: Some investment platforms may charge a fee if you do not make any trades or log into your account for an extended period of time.
• Fund fees: Some investment funds have additional fees, such as management and redemption fees, which can be passed on to investors.

Comparing Account Minimums and Restrictions on the Best investment platforms

Which is the Best Investment Platform for Reviews?

There’s no one ‘best’ investment platform since they cater to different aspects of the market, but if we use Trustpilot reviews as an indicator of customer satisfaction, we can see that Interactive Investor, AJ Bell, and AvaTrade tie for the top position.

How do I transfer money to an investment platform?

To transfer money to an investment platform, you will typically need to follow these steps:

1. Opening an account typically involves filling out an online application form and providing your personal information and details.
2. Verification: The platform will verify your identity and ensure that you meet their eligibility criteria for opening an account.
3. Link a bank account: This can usually be done online and will be used to transfer funds to your investment platform account.
4. Initiate a transfer: This may involve logging into your online bank account and making a transfer, or you may be able to do this directly from your investment platform account.
5. Wait for the transfer to complete: Transfers can take a few days, depending on the platform and the bank. It is important to remember that transfers may take longer during weekends or holidays.

Are investment platforms safe?

Investment platforms are generally considered safe, but like any financial product, risks are always involved. Here are a few things to keep in mind to help ensure the safety of your investments:

1. Regulation: Look for an investment platform regulated by a reputable financial authority, such as the UK’s Financial Conduct Authority (FCA). This can help provide an extra level of protection for your investments.
2. Security measures: Ensure that your investment platform has robust security measures to protect your personal and financial information, such as two-factor authentication and encrypted data transmission.
3. Diversification: Diversifying your investments across different assets and market sectors can help reduce the overall risk of your portfolio.
4. Financial stability of the platform: Consider your chosen investment platform’s financial strength and track record. A platform that has been in business for a long time and has a solid financial track record is more likely to be a safe choice.

What is the difference between an investment platform and a traditional broker?

An investment platform and a traditional broker both offer investment services, but there are some critical differences between the two.

Investment platform:

1. An investment platform is an online service that provides a platform for individuals to invest their money in various financial instruments, such as stocks, bonds, ETFs, and mutual funds.
2. Investment platforms typically have low fees and user-friendly interfaces that enable individuals to manage their portfolios, track their investments, and make new trades.
3. They offer a wide range of investment options and often provide access to research resources and tools to help investors make informed investment decisions.

Traditional broker:

1. A traditional broker is a financial professional who provides investment advice and buys and sells securities on behalf of clients.
2. They typically charge higher fees than investment platforms and may require face-to-face meetings to discuss investment options and strategies.
3. Traditional brokers provide personalized attention and advice, benefiting those who prefer a more hands-on investment approach.

The choice between an investment platform and a traditional broker will depend on an individual’s investment goals, experience, and personal preferences.

Can I invest in stocks, bonds, and other financial instruments through an investment platform?

You can invest in stocks, bonds, and other financial instruments through an investment platform. Investment platforms typically offer a wide range of investment options, including:

1. Stocks: You can buy and sell individual stocks and exchange-traded funds (ETFs) that track a specific market or sector.
2. Bonds: You can invest in bonds issued by governments, corporations, and other entities.
3. Mutual funds: You can invest in mutual funds, which pool money from many investors to purchase a diverse portfolio of stocks, bonds, and other securities.
4. Exchange-traded funds (ETFs): ETFs are investment funds that track a specific market or sector, and you can buy and sell shares in these funds on a stock exchange.
5. Alternative investments: Some investment platforms offer access to alternative investments, such as cryptocurrency, real estate investment trusts (REITs), precious metals, and commodities.

What kind of research resources and tools are available through investment platforms?

1. Market and Industry Reports: Investment platforms often provide access to reports on various markets, industries, and economic indicators that can help investors stay informed and make informed decisions.
2. Investment Portfolio Analysis: Some platforms offer tools to help investors track their investments and see how they are performing over time.
3. Stock and Fund Screener: Investment platforms often provide stock and fund screeners that allow investors to search for stocks or funds that match specific criteria, such as growth, value, dividend yield, or risk tolerance.
4. Market Data and Charts: Investment platforms typically offer real-time market data and charts, allowing investors to track stock prices, market indices, and other financial data in real time.
5. Investment Calculators: Many investment platforms provide calculators that help investors estimate their potential returns and understand the impact of their investments over time.
6. News and Analysis: Many investment platforms offer access to news and analysis from expert sources, such as financial news outlets, stock market experts, and investment advisors, to help investors stay informed and make informed investment decisions.

Investment platforms FAQs