Best Investments UK 2020

While most investors in the UK will stick with traditional stocks and shares, there are many other financial instruments that allow you to grow your money.

This includes everything from ETFs and bonds, to options and mutual funds. With that said, each investment vehicle will come with its own risks and potential rewards – so you need to spend some time assessing your personal financial goals.

To help point you in the right direction, this guide will discuss the UK best investments of 2020. We’ll run through a variety of options for you to consider, and conclude by showing you how to make an investment online.

Best Investments UK in 2020 – Summary

Here’s an overview of our top-rated investments for UK residents. By scrolling down, you’ll find an in-depth discussion on each investment.

  • British American Tobacco – Best Stock For Long-Term Dividends and Stable Growth
  • EasyJet – Best Stock For Investing in the Recovery of the Airline Industry
  • iShares Core High Dividend ETF – Invest in 75 Dividend-Paying Companies
  • S&P 500 – Unbeatable Returns Over 9 Decades of Trading
  • Stock CFDs – Best Asset for Short-Term Trading
  • Lloyds TSB Bank – Running Yield 8.070% (April 2023)
  • Yorkshire Building Society – Running Yield 9% (April 2025)
  • Imperial Tobacco Finance – Running Yield 7.9% (GTD 2022)
  • iShares 1-3 Year Treasury Bond ETF – Invest in Safe US Government Bonds

Best Stock Investments

Stocks and shares are often the go-to investment vehicle for UK residents. This is because they are relatively easy to understand, and making a purchase can be completed without needing to have any stock market knowledge. On the other hand, there are thousands of stocks available to UK investors, so knowing where to start can be challenging.

This is further amplified when you consider that leading UK brokerage sites also give you access to international shares – such as those listed in the US or Australia.  This is why you need to spend a bit of time researching a stock investment before taking the plunge. 

Some of the best stock investments of 2020 are listed below:

British American Tobacco – Best Stock For Long-Term Dividends and Stable Growth 

British American Tobacco is a leading player on the FTSE 100 – with a current market valuation of well over £64 billion. Those backing the firm when it first went public several decades ago are now looking at unprecedented returns. Not only does this include capital gains, but healthy and consistent dividends, too.

British American Tobacco - Best Stock For Long-Term Dividends and Stable Growth

In fact, British American Tobacco is still paying a generous trailing dividend yield of 7-8%. As such, this stock is ideal for those of you that seek regular income. We should also note that the tobacco industry is relatively unaffected by wider economic recessions. As such, British American Tobacco also possesses strong and stable characteristics.

75% of retail investor accounts lose money when trading CFDs with this provider

EasyJet – Best Stock For Investing in the Recovery of the Airline Industry 

In a similar nature to other UK industries – airline stocks were hit hard in the midst of the COV-19 pandemic. Owing to global restrictions on cross-border travel, this means that planes remained grounded for several months. Although flights are slowly but surely back in operation, it remains to be seen how long it will be before passenger numbers return to pre-pandemic levels.

EasyJet - Best Stock For Investing in the Recovery of the Airline Industry 

With that being said, now could be a great time to add some airline stocks to your portfolio, not least because prices are at rock-bottom levels. If you do believe that the airline industry will eventually resume to where it should be, EasyJet shares might be worth considering.

The most important aspect of this British airline is that it was successful in raising financing during the height of the global lockdown. This allowed the firm to weather to COV-19-related storm. In terms of pricing, EasyJet shares started the year at 1,430p. The same shares are worth just 480p as the time of writing, representing a potential discount of 66%.

75% of retail investor accounts lose money when trading CFDs with this provider

Best Investments For Monthly Income

There are heaps of UK investment vehicles that allow you to earn income on top of capital growth. At the forefront of this are dividend stocks and bonds. Regarding the former, dividend-paying companies typically make a distribution every three months. This will be paid directly into your brokerage cash account. When it comes to bonds, you will receive a coupon payment on a quarterly or bi-annual basis.

With that said, one of the most popular investments for those seeking regular income is that of the iShares Core High Dividend ETF – which we explain in more detail below.

iShares Core High Dividend ETF – Invest in 75 Dividend-Paying Companies

If you’re seeking regular income in the form of stock dividends, it doesn’t get much better than the iShares Core High Dividend ETF. By making a single investment, you will be buying a basket of 75 dividend stocks. Each stock is carefully selected by the fund manager to ensure it has a longstanding track record of paying dividends.

iShares Core High Dividend ETF

We should now state that this ETF focuses exclusively on US stocks. This includes the likes of Coca Cola and Verizon – both of which offer a good blend of stable growth of regular income. With that said, being a UK resident doesn’t need to prevent you from gaining access to the fund. On the contrary, UK brokers like eToro not only allow you to invest in the iShares Core High Dividend ETF from just $50 – but you do so from the comfort of your home commission-free.

Is it important to note that the iShares Core High Dividend ETF is just one example of an investment that generates regular income. Other options available to UK investors are listed below.

75% of retail investor accounts lose money when trading CFDs with this provider

 

Best Long Term Investments

Long-term investments are best suited to those of you that want to gain exposure to the financial markets with minimal effort. In most case, this covers investments that are held for at least one year. However, some long-term investments might remain in play for several decades – especially those that consistently generate dividend income. 

The best thing about investing in the long-term is that you can just sit back and allow your money to work for you. A prime example of this is investing in a company when it first goes public. For example, had you invested £1,000 into Tesla during its IPO of 2010 – you would have paid in the region of $3 per share (adjusted for recent stock split).

Had you held onto the stocks until 2010 – where Tesla hit highs of $500, your £1,000 investment would now be worth £165,660. Even then, many investors will refuse to offload their Tesla shares taking into account that the firm is still in its corporate infancy. With that said, if you’re thinking about building a long-term position – it’s a lot less risky to invest in an index as opposed to an individual stock.

At the forefront of this is the S&P 500 – which we discuss below.

S&P 500 – Unbeatable Returns Over 9 Decades of Trading 

The S&P 500 is a stock market index that tracks 500 US large-cap stocks. The index is weighted, meaning that those with large market valuations continue a higher percentage. For example, while Apple and Microsoft contribute in the region of 7% and 5% respectively, Visa and Procter & Gamble both contribute just over 1%.

There are many benefits to choosing the S&P 500 as a long-term investment. First and foremost, you will be investing in the biggest and best-performing companies in the US. On top of the aforementioned, you’ll be holding shares in IBM, Ford Motors, Disney, Nike, Amazon, Facebook, JP Morgan, and many other major brands.

S&P 500 Index - Best long-term investment

You’ll be investing in all 500 companies at an amount proportionate to what you can afford. This can be achieved by making a single investment with an ETF provider that is tasked with tracking the index. The provider will purchase each and every stock at a rate that mirrors the respective weighting.

When using a commission-free broker like eToro, you’ll have several S&P 500 ETFs to choose from, all on a commission-free basis. Since the index was launched in 1926, it has returned over 10% per year. To put these figures into perspective, had you invested £100 every month for the past 30 years, your capital would now be worth over £225,000.

Although we like the S&P 500 – there are many other long-term investments that you might consider, such as:

  • Government Bonds
  • Corporate Bonds
  • Individual Stocks
  • Index Funds
  • ETFs
  • Mutual Funds
  • Real Estate

75% of retail investor accounts lose money when trading CFDs with this provider

Best Short Term Investments

If you’re more interested in chasing short term gains, there are plenty of financial vehicles for you to choose from. For example, there are hundreds of FCA-regulated platforms that allow you to trade CFDs. These are instruments that track the real-time price of assets like stocks, oil, gold, indices, bonds, and cryptocurrencies.

As the underlying asset does not exist, you can often trade your chosen CFD without paying any commissions. Furthermore, CFD brokers allow you to apply leverage. At up to 1:30, this means that a £200 account balance would allow you to trade with £6,000. Additionally, trading the short-term price movement of CFDs allows you to place short-selling orders. 

Put simply, this means that you will be speculating on the asset going down. This isn’t something that you can do when using a traditional stock broker. A further characteristic of short-term investments is that they allow you to gain access to your funds at the drop of a hat. It’s usually just a case of closing the position and withdrawing the cash from the broker back to your bank account.

While there are many short-term investments to choose from, UK traders will often opt for stock CFDs.

Stock CFDs – Best Asset for Short-Term Trading

As noted above, CFDs are tasked with tracking the value of an asset in real-time. This is highly conducive for stock trading, as you can place buy and sell orders without needing to pay any dealing fees. By opting for CFDs, you will have access to thousands of stocks from heaps of UK and international marketplaces.

Stock CFDs at eToro

All you need to do is determine whether you think the value of the stock will go up or down. If your prediction is correct, then you make money. For example, you might decide to place a £500 sell order on HSBC stocks. The stocks crash by 4% over the course of the day in response to the bank’s money-laundering scandal – meaning that you’ll make a quick £20 profit.

Additionally, you can apply leverage of up to 1:5 when trading stock CFDs in the UK, Had you applied the full amount, your HSBC trade would have netted you £100 (£20 x 5).

If CFD trading isn’t your thing, there are lots of other short-term investment opportunities to choose from, such as:

  • Savings Bonds
  • Short-Term Corporate Bonds
  • Options
  • Futures
  • Peer-to-Peer Lending

75% of retail investor accounts lose money when trading CFDs with this provider

Best ISA Investments

Best UK ISA investmentsIndividual Savings Accounts (ISA) are a must-have if you are a UK-based investor. Whether you’re looking to invest tens of thousands of pounds or just a few hundred, ISAs allow you to shield some of your assets from HMRC. In the 2019/20 tax year, you can invest up to £20,000 into an ISA.

This will then reset again next year, meaning you can invest a further £20,000. All investments held in your ISA are exempt from both capital gains and dividend tax, so it’s well worth choosing a broker that can facilitate this for you.

Examples include Hargreaves Lansdown – which offers thousands of stocks and funds that you can add to your ISA. IG is also a notable option as the platform offers over 10,000 traditional assets. On the flip side, you should never choose a broker just because it offers an ISA. After all, what you save on tax might get eaten away at by expensive dealing charges and fees.

In terms of what you can add to your ISA, you’ll find a list of eligible assets below:

  • Mutual Funds
  • Unit Trusts
  • Stocks
  • Exchange-Traded Funds (ETFs)
  • Investment Trusts
  • Bonds (Corporate and Government)

Once you go over your ISA limit of £20,000, any remaining investments will be placed into the standard account that is offered by your chosen broker. Outside of Stocks and Shares ISAs (which incorporates all asset classes listed above), you can also select from a Cash ISA, Innovative Finance ISA, and Lifetime ISA.

 

Best Bond Investments

Bonds allow you to earn passive income, as the issuer will pay you regular interest until they mature. This usually comes in two forms – corporate bonds and government bonds.

  • Corporate bonds are issued by large-scale financial institutions. These offer better yields than government bonds, but often come with higher risk.
  • By purchasing government bonds in the UK, you will be lending money the government. These are virtually risk-free, as the only way that you will lose money is if the UK government collapsed. Naturally, the yields on offer are typically very low.

If you’ve never invested in bonds before, the process is actually very simple. All bonds come with a coupon rate, which refers to the amount of interest that you will be paid. For example, if you purchase £10,000 worth of bonds and the issuer pays 3% per year, you’ll receive an annual payment of £300.

Buy corporate bonds at Hargreaves Lansdown

All bonds come with a maturity date, too. This is the date in which the bonds expire and the issuer must repay your initial investment. Bonds come with various maturity durations – from just a few months up to several decades. The longer the duration, the more risk there is of the issuer defaulting and thus – the more interest you should expect.

The best bond investments available in the UK are listed below:

Lloyds TSB Bank – Running Yield 8.070% (April 2023)

You can purchase Lloyds TSB Bank bonds from Hargreaves Lansdown. The bonds initially came with a coupon payment of 9.6% when they were issued in 1993, albeit, the running yield has dropped slightly to 8%. This is still a huge amount of interest to be making. The bonds come in denominations of £1,000 each, and will mature in April 2023.

Yorkshire Building Society – Running Yield 9% (April 2025)

Yorkshire Building Society bonds can also be purchased directly from Hargreaves Lansdown. They come with a juicy running yield of 9% and a maturity date of April 2025. This gives you just under five years of interest payments – which are distributed every 6 months. These bonds come in denominations of £500 – which is slightly more affordable than those offered by Lloyds TSB Bank.

Imperial Tobacco Finance – Running Yield 7.9% (GTD 2022)

You can also obtain a healthy bond yield with Imperial Tobacco Finance. Once again, one of the few brokerage options on the table with these bonds is Hargreaves Lansdown. The bonds expire in 2022 – so you’ve got just over two years worth of coupon payments to enjoy. With that said, Hargreaves does require a minimum investment of £50,000 on this bond instruments.

 

Best Safe Investments

While all investments carry risk, certain asset classes are safer than others. The overarching concept of safe investments is that you will be limiting the risk of loss. At the time same, this does come at a price. In other words, the yields on so-called safe investments are typically very low.

As such, this particular option won’t suit those of you that are looking to build a long-term pot. With that said, safe investments are good for those that are inching towards retirement, as you’ll be taking minimal risk.

In terms of asset classes, you’ll likely want to stick with the following:

  • High-Grade Corporate Bonds
  • Government Bonds From Strong Economies (UK, US, Australia, etc.)
  • FSCS-Protected Savings Accounts
  • UK Real Estate
  • Super-High-Grade Stocks (Amazon, Apple, etc.)

If we were to select just one safe investment to consider, it would have to be US Treasuries.

iShares 1-3 Year Treasury Bond ETF – Invest in Safe US Government Bonds

When the US government wishes to raise fund to fund its operations, it will issue US Treasuries. These are bonds that are backed by the US government, meaning that they are as safe as houses. That is to say, you’ll never need to worry about being paid back. After all, if the US government experiences a short-fall in cash, it will print more money or simply issue more bonds!

iShares 1-3 Year Treasury Bond ETF

However, this safe investment class does mean that you will get a very small return on your money. Nevertheless, if you’re looking to protect your capital from a potential market downfall, you can easily invest in US Treasuries with eToro. You’ll be doing this through an iShares ETF, meaning that the provider will buy and sell the bonds on your behalf.

At eToro, this won’t come with any dealing charges or commissions, nor will you need to pay any ongoing fees. Additionally, you can invest from just $50, so there is no requirement to break the bank. As you can see from the above, this ETF returned just under 2% last year. Although not great, you’re just about matching the rate of inflation.

75% of retail investor accounts lose money when trading CFDs with this provider

UK Investment Types

There are many different types of investments out there. You can find out all about these different types by checking out our expert investing guides below:

Choosing the Best Investments UK For Your Financial Goals

Knowing which investment to add to your portfolio can be difficult. As we have covered thus far – there are thousands of financial instruments to choose from – each and which comes with its own risks and rewards. This is why you should ensure that your portfolio management is well-diversified across multiple asset classes and sectors.

Nevertheless, below we will outline some of the most important metrics that you need to consider when searching for the best UK investments for your personal goals.

Investment Duration

You’ll first need to think about how long you plan to keep hold of your investment. For example, if you’re looking to grow your money over the course of time, then you should stick with long-term investments like mutual funds, ETFs, or growth stocks. The key point here is that you should refrain from touching your investment.

The general rule of thumb is to remain in the market for at least five years to ride out market waves. With that said, some of you might be looking to invest on a short-term basis. For example, you might have a target in mind – such as an impending wedding or retirement.  If this is the case, you’ll need to choose an asset that will allow you to cash out your capital in the short run.

Accessibility 

Assets like stocks, ETFs, and mutual funds can be invested in with ease in the UK. You simply need to choose a suitable broker and that’s it – you can instantly invest with your debit/credit card or e-wallet.

Esily invest in stocks at eToro

However, other asset classes can be more difficult to reach as an everyday investor. For example, corporate bonds can be tough to invest in – as can government securities issued abroad.

Returns 

When choosing an asset to invest in, you need to have a clear idea of how much you are likely to make. We’re not talking about an exact yield here (unless investing in bonds), but more of a realistic expectation of what your capital will be worth when you exit the position.

For example, if you were to invest in the S&P 500 over the course of many years, then a sensible target would be 10%. After all, this is what the index has returned on average since its inception 90+ years ago.

Risk 

You also need to have a clear understanding of how much risk is attached to your investment. In the case of stocks, the risk of loss is directly impacted by the firm’s share price. In other words, if you invest £10,000 and the shares drop by 20%, you’ll only be left with £8,000.

High risk assets include Bitcoin

When it comes to bonds, the main risk that you face is a default. This means that issuer does not have the financial means to meet your coupon payments or worse – the principal. Ultimately, just make sure that your chosen investment mirrors that of your tolerance for risk.

Income or Growth 

Some investments allow you to earn money through regular income, while others are best suited for long-term growth. In some cases – such as ETFs, mutual funds, and stocks – you stand the chance of making money across both forms. Crucially, your chosen investment must be aligned with your wider financial goals.

Exit Strategy 

You should always have an exit strategy in place when investing in assets. This is especially the case if you think that there is a chance you’ll need to cash your investment in. If you feel more comfortable with investments that can be cashed out at any given time, you’ll be best to stick with stocks and ETFs.

This is because you can exit your position at any time during standard market hours. At the other end of the spectrum, fixed-rate bonds usually lock you in for a set period of time. For example, if you purchase corporate bonds with a 5-year maturity, you might find it difficult to offload them until they expire.

Minimum Investment

You also need to consider the minimum investment that you will need to make to gain exposure to your chosen asset. For example, traditional brokerage houses require you to purchase at least 1 full share. This means that an investment in Amazon would require a total investment of just $3,000 (about £2,355).

However, if you were to use a newbie-friendly broker like eToro, you can invest from just $50 (about £40). This is because the platform supported fractional ownership. When investing in corporate bonds, the minimum investment can be even higher. This is because bonds usually come in denominations of either £500 or £1,000 – of which you need to buy a certain amount.

If you’d like to learn more investing, we recommend checking out our guides to the best investing books, investing podcasts and investing newsletters.

Best UK Investment Platforms of 2020

Irrespective of which investment you opt for, you will need to find a reliable online broker that meets a set of criteria. For example, not only does the broker need to host your chosen asset class – but also offer low fees and commissions. Additionally, you’ll want to ensure that your preferred payment method is supported and that the broker is licensed by the FCA.

With hundreds of such platforms to choose from, knowing which broker to sign up with can be time-consuming. As such, below you’ll find a selection of top-rated investment platforms offering accounts to UK residents.

1. eToro – Overall Best Investment Platform in the UK

eToro is a market leader in the UK brokerage scene. The platform is home to most asset classes – including a stocks suite that contains more than 1,700+ equities. You can also invest in ETFs, Vanguard funds, REITs and cryptocurrencies, and trade CFDs in the form of bonds, interest rates, currencies, and commodities.

The main attraction at eToro is that it charges no fees to invest. This means no commissions and no ongoing maintenance costs. The platform also supports fractional ownership. Not only is this conducive for creating a diversified portfolio, but also suited for those of you on a small budget.

Through its innovative Copy Trader feature, eToro also allows you to mirror the portfolio of experienced investors. This is great, as it allows you to invest in your chosen asset class on a passive basis. Getting started at eToro takes minutes, and simply requires some basic personal information.

You can easily deposit funds with your everyday debit/credit card, bank account, or an e-wallet like Paypal, Skrill, and Neteller. The minimum deposit sits at $200, albeit, you can invest from just $50 into your chosen asset. The platform is heavily regulated, including licenses from the FCA and ASIC. Your funds are also protected by the FSCS – up to the first £85,000.

eToro fees:

Commission 0%
Deposit Fee Free
Withdrawal fee $5
Inactivity fees $10 a month after 12 months inactivity

 

Pros:

  • Super user-friendly online trading platform
  • Buy stocks without paying any commission or share dealing charges
  • Trade CFDs in the form of stocks, indices, commodities, forex, and more
  • 800+ stocks listed on the UK and international markets
  • Deposit funds with a debit/credit card, e-wallet, or UK bank account
  • Ability to copy the trades of other users
  • FCA and FSCS protections

Cons:

  • Not suitable for advanced traders that like to perform technical analysis

75% of retail investors lose money trading CFDs at this site

2. Plus500 – Commission-Free CFD Trading Platform

This platform is suited for those of you that are looking to trade on a short-term basis. This is because Plus500 specialises in CFD instruments. This means that you will have access to thousands of tradable markets – including but not limited to stocks, bonds, index funds, ETFs, hard metals, energies, and digital currencies.

Each and every CFD market can be traded on a commission-free basis. You can choose from a buy and sell order on each market, as well as apply leverage. As a UK retail trader, this is capped at 1:30. As such, a £50 stake could result in a position worth as much as £1,500.

Plus500 allows you to open an account online or via your mobile phone, with minimum deposits starting at £100. There are no fees to fund your account, nor make a withdrawal. Its parent company – Plus500 Ltd, is listed on the London Stock Exchange with a market valuation of just over £1.5 billion. On top of its FCA license, this means your capital is well protected.

Plus500 fees:

Commission 0%
Deposit Fee Free
Withdrawal fee Free
Inactivity fees $10 per quarter after 3 months inactivity

 

Pros:

  • Commission-free CFD platform – only pay the spread
  • Thousands of financial instruments across heaps of markets
  • Retail clients can trade stock CFDs with leverage of up to 1:5
  • You can short-sell a stock CFD if you think its value will go down
  • It takes just minutes to open an account and deposit funds

Cons:

  • More suitable for experienced traders

80.5% of retail investors lose money trading CFDs at this site

3. IG – Trusted UK Trading Platform With 17,000+ Markets

IG stands out from the crowd for several reasons. First and foremost, this trusted investment platform dates its roots back to 1974. It is now publicly-listed in the UK with a market valuation of just under £3 billion, as it licensed by the FCA, ASIC, and many other regulatory bodies.

With that said, IG truly shines with the sheer size of its asset library. This stands at over 10,000 traditional shares and funds (ETFs, index funds, mutual funds, investment trusts). You’ll be charged £8 per trade or £3 when making placing at least three buy or sell orders in a month.

IG also allows you to trade via CFDs and spread betting instruments. Across more than 17,000 markets – you can apply leverage and ever short-sell your chosen asset. Best of all – unless you are trading stock CFDs, you won’t pay any commission. Minimum investment start at £250 and support payment methods include debit cards and a bank transfer.

IG fees:

Commission 0% commission on all CFD instruments apart from shares. £3 or £8 on share/fund dealing services
Deposit Fee Free (0.5%-1% fee on credit cards)
Withdrawal fee Free
Inactivity fees £12 a month after 2 years inactivity

 

Pros:

  • Trusted UK broker with a long-standing reputation
  • Good value share dealing services
  • Leverage and short-selling also available
  • Spread betting and CFD products
  • Access to the UK and international markets
  • Great research department

Cons:

  • A minimum deposit of £250
  • US stocks have a $15 minimum commission

4. Hargreaves Lansdown – Best Investment Account for ISA Investments

Hargreaves Lansdown is a trusted UK brokerage house that was founded in 1981. It now boasts a customer base of over 1.3 million customers – many of which are based in the UK. We like Hargreaves for its trusted reputation, simple investment process, and extensive asset library.

Regarding the latter, you can buy and sell thousands of UK and foreign stocks, as well as ETFs, mutual funds, and trusts. You can also register your interest to invest in UK IPOs. Additionally, Hargreaves Lansdown is a good option if you’re seeking an ISA.

The most you will pay on your ISA is 0.45%, plus any individual dealing charges. This stands at £11.95 per stock investment, albeit, you can get this reduced by trading regulatory. In terms of funding, Hargreaves Lansdown requires a lump sum of at least £100 per investment or a £25 monthly direct debit. The platform is FCA-licensed and partnered with the FSCS,.

Hargreaves Lansdown fees:

Commission £5.95 – £11.95 per trade
Deposit Fee Free
Withdrawal fee Free
Inactivity fees N/A


Pros:

  • Thousands of UK and international shares supported
  • Also offers bonds, investment trusts, ETFs, and mutual funds
  • Gain access to newly launched UK IPOs
  • Easily deposit and withdraw funds without being charged
  • Industry-leading research and analysis department
  • Telephone customer support is highly rated

Cons:

  • Entry-level commission of £11.95 per trade
  • Doesn’t allow you to trade CFDs or apply leverage

 

5. Capital.com – Trade Thousands of CFDs With a Minimum Deposit of £20

Capital.com is a UK-based CFD trading site that offers thousands of financial instruments. This covers indices, commodities, shares, and cryptocurrencies. All markets at the platform come with tight spreads and zero commissions.

In fact, at the time of writing Capital.com is offering a zero spread promotion on GBP/USD. There are no fees to deposit or withdraw funds, nor are there any currency conversion charges.

Capital.com is a great option if you want to give CFD trading a try, as the platform is ultra-simple to use. You can also get started with a small deposit of just £20 – which you can facilitate with as debit/credit card or e-wallet. The platform is FCA-regulated, so you should haven on concerns regarding safety.

Capital.com fees:

Commission 0% (spreads on CFDs)
Deposit Fee Free
Withdrawal fee Free
Inactivity fees $10 a month after 12 months inactivity

 

Pros:

  • Trading on hundreds of US and UK shares
  • Educational app for new traders
  • Minimum deposit of just £20
  • AI assistant identifies your weak points
  • Trade ideas generated daily
  • Excellent charting and analysis interface
  • 100% commission free trading

Cons:

  • Cannot build custom trading strategies

How to Invest Today

Looking to take the plunge by making an investment today, but not too sure where to start? In the walkthrough below, we’ll show you how to open an account with eToro, deposit some funds, and purchase your chosen asset.

Step 1: Open an Investment Account

Head over to the eToro website and being the account opening process. You can do this online or through the eToro investment app.

eToro open a share dealing account

You’ll need to provide some personal information – including your national insurance number. eToro will also need your contact details – including your email address and mobile number.

Step 2: Identity Verification

You’ll now be asked to upload some ID. This needs to be a clear copy of either your passport or driving license. Additionally, eToro needs a proof of address that was issued within the last three months. This can either be a utility bill or bank account statement.

You can upload the above documents at a later date as long as you do not plan on depositing more than $2,250.

Step 3: Deposit Funds

You can now deposit funds into your eToro investment account. This needs to be at least $200 – which is about £160. Supported payment methods include debit cards, credit cards, Paypal, Skrill, Neteller and bank account transfer.

Step 4: Make a Commission-Free Investment

You can now invest in your chosen asset. If you’re not sure what takes your fancy, click on the ‘Trade Markets’ button on the left-hand side. You can view each asset under its respective class – such as stocks, ETFs, or cryptocurrencies. Alternatively, you can search for your chosen asset class as we have below with BT stocks.

How to invest on eToro

Once you click on the ‘Trade’ button, a pop-up order box will appear. If you are looking to invest in the asset without applying leverage, then all you need to do is enter your stake. This needs to be at least $50.

How to invest on eToroAs soon as you confirm the order (assuming its during standard market hours), your investment will be added to your eToro portfolio. It will remain there until you decide to cash it out.

Conclusion

Whether you’re looking to build a retirement pot or invest on a short-term basis – there is an asset class to suit most needs. Each investment type comes with its pros and cons – especially in terms of risk and potential rewards. This is why you need to spend some time assessing what your long-term goals are. If you’re torn between several assets, then you might want to consider diversifying with small stakes.

Either way, eToro is well worth considering if you’re looking to get your investment journey started right now. It takes just minutes to register an account and you can instantly deposit funds with a UK debit/credit card. The FCA broker charges no commissions or ongoing fees, either – so you can invest in a truly cost-effective environment!

eToro – Invest Online With 0% Commission

 

75% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

What are the best investments in the UK?

No-two investments are the same, so you need to think about what your financial goals are. With that said, most UK investors will start off with a stocks and shares account, or simply invest with a mutual fund or ETF.

Which investments have the best returns?

Your returns will be influenced by the risk associated with the asset in question. For example, UK bonds carry little risk - if any, but pay super-small returns. At the other end of the spectrum, the likes of penny stocks and cryptocurrencies carry the highest risk, but at the same time, offer a much higher upside potential.

Which investments are good for beginners?

If you have virtually no experience of how investments work, you might be best to stick with a passive vehicle like mutual funds or ETFs. This way, you won't need to decide which assets to invest in, and when to time the market.

How much do you need to invest in stocks in the UK?

Minimum investment amounts are determined on a broker-by-broker basis. If you want to start off with a small amount, Capital.com and eToro require a minimum deposit of just £20 and $200, respectively.

Are UK investment sites regulated?

Investment platforms offering their services to UK investors should be regulated by the FCA. If it isn't, you should avoid it.

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Kane Pepi

About Kane Pepi

Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Academically, Kane holds a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and he is currently engaged in a Doctorate Degree researching the money laundering threats of the blockchain economy. Kane is also behind peer-reviewed publications - which includes an in-depth study into the relationship between money laundering and UK bookmakers. You will also find Kane’s material at websites such as MoneyCheck, the Motley Fool, InsideBitcoins, Blockonomi, Learnbonds, and the Malta Association of Compliance Officers.