How to Invest 1000 Pounds UK – Best Investments Revealed

Interest in the investment scene has grown exponentially since the lockdown first began. As such, more and more Brits are looking to invest online for the very first time.

If you’re looking for a bit of inspiration, this guide explores how to invest 1000 pounds in the UK. We cover a selection of potential investments of various risk/reward levels that you may choose to consider.

We also explain the many metrics that you need to look out for when choosing an investment for your financial goals and how to get started with a brokerage account today!

How to Invest 1000 Pounds UK – Best Investments for 2021 List

If you’re wondering how to invest 1000 pounds UK, here’s a break down of the top 10 investments to consider in 2021. We discuss each investment in more detail further down.

  1. S&P 500 Index – Overall Best Way to Invest 1000 Pounds – Invest Now
  2. Gold – Best Investment for Hedging Against a Stock Market Recession – Invest Now
  3. Tech Stocks – Best Investment for Above-Average Market Returns – Invest Now
  4. Pound Sterling (GBP/USD) – Best Short-Term Investment to Capitalize on a Surging Pound
  5. Copy Trading – Best 1000 Pounds Investment to Trade Passively
  6. Airbnb – Best Growth Stock Investment (Went Public in December 2020)
  7. Johnson & Johnson – Best Dividend Stock Investment
  8. Bitcoin – Best Crypto Investment in the UK
  9. Corporate Bonds – Best Way to Invest 1000 Pounds for Fixed-Income
  10. Savings Bonds – Best Way to Invest 1000 Pounds Risk-Free (FSCS Protected)

Best Ways to Invest 1000 Pounds UK

If you’re looking for the best ways to invest 1000 pounds, there are many options on the table. Most first-time investors in the UK consider stocks, albeit fixed-rate bonds are also worth considering.

If you prefer more of a backseat approach, another way to invest 1000 pounds is through an ETF or mutual fund. Crucially, the investment that you choose is dependent on what your financial goals are and how much risk you feel comfortable taking.

To help point you in the right direction, below we discuss how to invest 1000 pounds UK.

1. S&P 500 Index – Overall Best Way to Invest 1000 Pounds 

Irrespective of whether you’re a seasoned investor or complete newbie – index funds like the S&P 500 are highly sought after by those seeking a long-term diversified portfolio. In a nutshell, the S&P 500 is an index fund that tracks 500 large companies in the US. The companies listed on the index are established, house-hold names that dominate their respective sector.

Think along the lines of Amazon, Apple, Johnson & Johnson, Tesla, Nike, Disney, Ford Motors, Facebook, Visa, MasterCard, and American Airlines. The index is ‘weighted’ by market capitalization, meaning that more exposure is given to larger companies. This allows you to invest in the wider American stock market – meaning there is no requirement to buy and sell individual stocks.

Additionally, the S&P 500 index is rebalanced and reweighted regularly. In terms of how this investment works, you will need to go through an ETF provider like Vanguard or iShares. The provider in question will personally buy shares in the 500 companies that are listed on the S&P 500 – at a propionate weight.

sp500 index

For example, let’s say that you invested 1000 pounds into the Vanguard S&P 500 ETF via commission-free broker eToro. If, for instance, Apple has a weighting of 4%, this means that you will own 40 pounds worth of Apple stocks. If Visa has a weighting of 1.5%, then you will own 15 pounds worth of Visa stocks – and so on.

When it comes to making money, this can be achieved in two ways with the S&P 500. Firstly, if and when the value of the 500 S&P 500 shares increases collectively – as will the value of your investment. For example, if you invest 1000 pounds into the index and it increases by 10% at the end of the first year, your investment will now be worth 1100 pounds.

Secondly, many of the companies that form the S&P 500 index pay dividends. As an investor, you will be entitled to your share. ETF providers like Vanguard and iShares will distribute a payment every three months. If you’re wondering about potential financial gains, the S&P 500 has made an average annualized return of 10% since it was launched in 1926.

Your capital is at risk.

 

2. Gold – Best Investment for Hedging Against a Stock Market Recession 

There is no getting away from the fact that we are now in the longest stock market bull run since the Second World War. But, as has always been the case, the stock markets always go through cycles. The last major recession was seen in 2008 and we had the Dot Come Bubble prior to that.

The key point here is that stocks can’t continue to move in an upward direction indefinitely. On the contrary, market corrections will always at time point result in a prolonged downward spiral that can last months or even years. If and when the next bear market does come to fruition, you might want to consider investing in a precious metal like gold as a means of protecting your capital.

In terms of how you invest 1000 into gold from the UK, there are several options on the table. The old-school way of buying gold jewellery, coins, or bars is no longer the way to go. This is an expensive, cumbersome, and risky way of accessing the market. Instead, we would suggest considering an ETF that tracks the value of gold.

invest in gold UK

For example, the SPDR Gold ETF – which is the largest physically-backed gold fund in the world, allows you to invest in this precious metal indirectly. The ETF provider personally buys and stores gold on behalf of its investors. Your investment is represented in an ETF stock price that goes up and down in-line with the global value of gold.

In simple terms, if the price of gold increases by 15% in 2021, as will the ETF. The best thing about investing in a gold ETF is that you can cash out at any given time during standard market hours. This means that you can keep hold of your investment until you feel the time is right to consider other asset classes.

When it comes to potential returns, this is difficult to predict. Historically, gold has performed extremely well – especially during times of economic uncertainties. But, at the same time, gold is also relatively volatile – especially in the short-term. With that said, gold has increased in value by over 500% over the past 20 years – the numbers speak for themselves.

Your capital is at risk.

3. Tech Stocks – Best Investment for Above-Average Market Returns

There are many types of stocks that you can invest in. You have dividend stocks, blue-chip stocks, and even cannabis stocks. However, it is tech stocks that led the way in 2020 – when the rest of the market dealt with the wider impact of the coronavirus pandemic.

Let’s take Tesla as a prime example, with the electric car maker seeing returns of over 700% in 2020 alone. You then have the likes of Zoom and Square, which both saw 2020 gains of over 250%. Established tech stocks like Amazon, Apple, and Facebook also had tremendous years.

In terms of how you can invest 1000 pounds into tech stocks, you have several ways to approach the market. Firstly, you can use a commission-free broker like eToro and build a basket of tech stocks manually. The minimum investment per stock on eToro is just $50 (about 40 pounds), so a 1000 pounds investment would get you around 25 tech stocks.

tech stock CopyPortfolio eToro

Alternatively, you could consider an ETF that tracks the NASDAQ 100. After all, the NASDAQ exchange is where the vast majority of tech stocks are listed. Perhaps an even better option is to consider the BigTech CopyPortfolio at eToro – which requires a minimum investment of just under 1000 pounds.

This will get you access to a fully diversified basket of tech stocks – including but not limited to Amazon, Netflix, Samsung, Alibaba, Microsoft, Google, and Facebook. As CopyPortfolios are professionally-managed by the team at eToro (albeit, commission-free), your basket of stocks will be regularly rebalanced on your behalf.

Your capital is at risk.

4. Pound Sterling (GBP/USD) – Best Short-Term Investment to Capitalize on a Surging Pound

If you’re wondering how to invest 1000 pounds into a short-term financial instrument, it could be worth considering the pound sterling. In simple terms, you will be speculating that the pound increases in value against another currency, such as the US dollar. For example, at the time of writing in mid-February 2021, GBP/USD carries an exchange rate of just under 1.40.

This means that for every 1 pound, the markets are prepared to give you 1.40 dollars. Now, it’s important to note that in March 2020, GBP/USD carried an exchange rate of just 1.15. This means that in just under 12 months, the pound sterling has increased in value against the dollar by over 21%.

With that said, much of this upward trajectory has come in the past few months. This has been directly correlated to two key events. Firstly, with the uncertainties of Brexit now somewhat a distance memory, this has encouraged investors to reconsider the UK investment scene.

invest 1000 pounds into gbp/usd

Secondly, and perhaps most importantly, the UK is currently one of the best performing countries globally with respect to its vaccine rollout. At the time of writing, more than 20% of the UK population has received their first dose, with only Israel and the United Arab Emirates have vaccinated more people per capita.

Taking these two crucial factors into account – investors are now extremely bullish on the pound sterling. If you do want to speculate on the pound continuing its upward movement against the dollar (or another major currency like the Euro or Japanese yen), you can easily facilitate this via a forex trade. For example, eToro allows you to trade GBP/USD commission-free.

We should, however, note that a forex trade such as the one being discussed in only suitable as a short-term strategy. This is because forex pairs like GBP/USD are leveraged financial products – meaning they attract overnight financing fees. Based on a 1000 pounds trade on eToro, this would amount to about 3p per day and 10p over the weekend.

Your capital is at risk.

5. Copy Trading – Best 1000 Pounds Investment to Trade Passively

If you want to invest in a passive manner on a long-term basis, then ETFs and index funds are the way to go. However, if you want to passively trade, you’ll need to consider an alternative option. To clarify, when we talk about ‘trading’ as opposed to ‘investing’, this means that you are buying and selling financial instruments on a short-term basis.

For example, you might open a 1000 pounds buy position on gold and then close the trade a few days or even hours later. This is with the view of making small but frequent gains that can quickly add up. With that said, short-term day trading is best reserved for experienced investors that know how to perform technical analysis and interpret pricing trends.

The good news is that it is now possible to actively trade without needing to lift a finger – and that’s through a Copy Trading tool. For example, at eToro, you can choose from thousands of verified investors that have a long-standing track record on the platform.

copy trading at eToro

The minimum investment is about 150 pounds per trader, so a 1000 pounds investment would allow you to copy six individuals. In terms of how it works, let’s suppose that you invest 1000 pounds into a stock trader that has been making profits on eToro for several years. The stock trader in question decides to risk 5% of their capital on Twitter shares.

In turn, you would also invest 5% of your portfolio into Twitter shares – so that’s 50 pounds (5% of your 1000 pounds investment). Then, when the stock trader decides to sell their Twitter shares, you would do the same. The key point here is that you can actively day trade your chosen financial market in a completely hands-off manner.

Your capital is at risk.

6. Airbnb – Best Growth Stock Investment (Went Public in December 2020)

If you’re looking to invest 1000 pounds into a top-rated growth stock that is still in the infancy of its corporate journey  – it might be worth considering Airbnb. The firm – which sits between landlords of short-term tenants, has grown to exponential heights since it was first launched in 2008.

Fast forward to 2021 and the US-based accommodation platform now dominates the short-term rental space by a country mile. With that said, although the platform is now home to over 4 million hosts with listings in more than 220 nations and regions, this is minute when you consider the size of the market. Recent estimates put this figure at over $3 trillion.

When you consider that Airbnb reported booking revenues of $38 billion in 2019, this is just a drop in the ocean. In particular, Airbnb is expected to capitalize on the pandemic in the coming years, with more and more holidaymakers considering private accommodation as opposed to hotels and resorts.

airbnb stock buy UK

Taking all of this into account, Airbnb went through the IPO (Initial Public Offering) process in December 2020. Opting for the NASDAQ exchange, the shares were initially priced at $68 each. In just three months, the shares have since increased to $219 – representing growth of over 222%.

The key point with this investment is that Airbnb is arguably worth just a fraction of its true potential. As is the case with a lot of growth stocks, some commentators do argue that at current prices (market capitalization of over $127 billion), Airbnb shares could be overpriced.

But, if you believe in the Airbnb business model and have full recognition of the size of the market, this growing company potentially has a bright future in front of it. Plus, when using a commission-free broker like eToro – you can keep your stakes modest. This is because the minimum investment is just $50 (about 40 pounds), so you can diversify with ease.

Your capital is at risk.

7. Johnson & Johnson – Best Dividend Stock Investment

Airbnb and Johnson & Johnson could not be further apart in terms of risk and potential reward. While one is an up and coming growth stock still in its infancy, the other is a highly established market leader with a super-strong balance sheet. In the case of Johnson & Johnson, not only has the firm operational since 1886, but it has been publicly listed on the NYSE since 1944.

Perhaps the most attractive thing about Johnson & Johnson is that it is one of the best dividend-payers globally. In fact, Johnson & Johnson is a Dividend Aristocrat, as it has increased the size of its dividend every quarter for at least 25 years. Johnson & Johnson has been doing this for nearly six decades, so if you’re seeking a strong and stable investment – this could be it.

best dividend stock investment uk

On the other hand, if you invest 1000 pounds into Johnson & Johnson, you are not going to see the same type of returns as found with growth and tech stocks. But, of course, the risks of these investments are considerably higher. With Johnson & Johnson, the stock has been through many stock market recessions and has always recovered.

After all, the firm is a staple stock, meaning that it sells products and services that will always be in demand regardless of how the economy is performing. Crucially, although your capital gains are going to be modest, Johnson & Johnson has still performed well over the past year – with gains over 11% in the 12 months prior to writing this article.

Furthermore, exciting times potentially lie in waiting for Johnson & Johnson stockholders, not least because the firm is in advanced stages of its coronavirus vaccine. Although Johnson & Johnson is far behind the likes of Moderna and Pfizer, its vaccine is more attractive as it requires just one dose and it doesn’t need to be stored in sub-freezing conditions.

Your capital is at risk.

8. Bitcoin – Best Crypto Investment in the UK

This particular way of investing 1000 pounds will not be for the faint-hearted. After all, cryptocurrencies like Bitcoin are still in their infancy. As such, this highly speculative and volatile asset class carries a lot of risks. With that said, we should note that Bitcoin is one of, if not the best performing investments of the past decade.

For example, those that invested in Bitcoin 10 years ago would have paid less than 1p per Bitcoin. If we fast forward to February 2021, the same Bitcoin is selling for just under $50,000 (about 35,000 pounds). This means that early investors are now multi-millionaires.

But, it’s not just early investors that have enjoyed Bitcoin’s upward surge. On the contrary, you could have invested in Bitcoin at a price of just $5,000 (about 3,500 pounds) as recently as March 2020. Based on its recent price level of around $50,000 – this means that Bitcoin has increased 10 fold in less than one year.

invest in bitcoin uk

During the same period, the FTSE 100 has decreased by almost 10%. If you’re somewhat confused as to how a Bitcoin investment works, the process is actually very simple in the UK. All you need to do is use an FCA-regulated broker like eToro, with the platform allowing you to buy Bitcoin with a UK debit/credit card, bank transfer, or e-wallet.

Once you have made a deposit, you can then invest from just $25 (about 18 pounds). This means that you don’t need to go ‘all in’, rather, you can invest modest, consequential amounts. Just remember, if you do invest in Bitcoin, this volatile asset class can just as quickly go down in value – sometimes at an amount of more than 10% in just one day.

As such, not only should you keep your stakes to an absolute minimum, but you should diversify well. Perhaps another option to consider is an eToro CopyPortfolio that focuses exclusively on digital currencies. This will get you a fully diversified portfolio of cryptocurrencies that not only include Bitcoin, but the likes of Ethereum, Ripple, EOS, Litecoin, and more.

Your capital is at risk.

9. Corporate Bonds – Best Way to Invest 1000 Pounds for Fixed-Income

If you’re looking for a passive way to invest 1000 pounds and you want to know exactly what your financial returns are likely to amount to – it might be worth considering bonds. While US Treasuries and UK Gilts offer an unattractive annual yield of less than 2%, there are many corporate bonds that still offer favourable returns.

Before we get to that, it’s important that you have a grasp of how a corporate bond investment actually works. Put simply, each corporate bond that you buy will have a yield attached to it – which is fixed. If, for example, the bond pays 6% per year and you invest 1000 pounds, you will receive an interest payment of 60 pounds per year.

This will continue to happen until the corporate bonds mature – which can be anywhere between 1-25 years. When they do mature, only then will you get your initial 1000 pounds investment back. Once again, bonds are great if you want to invest in a passive nature and you want to know how much money you are going to make.

bond ETF UK at etoro

So, in terms of which corporate bonds to consider – you have a few options on the table. Over at Hargreaves Lansdown, the UK broker offers a good range of bonds issued and backed by banks, building societies and lenders – most of which offer an attractive yield. For example, the likes of Halifax PLC are offering a running yield of 10.48%.

National Westminster bonds are offering a running yield of 6.6% and Investec Bank PLC at 8.8%. The main thing to remember when investing in corporate bonds is that your money is typically locked away until the instrument matures. Although there is often a secondary market – this is usually reserved for institutional players.

If you like the sound of investing in bonds but you don’t want to put all your eggs into one basket, an alternative option to consider is an ETF. the Vanguard Total Bond Market ETF gives you access to over 10,000 individual bonds. Available on eToro commission-free, this ETF covers both corporate and government bonds – not only from the US, but globally.

Your capital is at risk.

10. Savings Bonds – Best Way to Invest 1000 Pounds Risk-Free (FSCS Protected)

Each and every investment discussed on this page carries an element of risk that varies depending on the asset. At one end of the scale, you have the likes of Bitcoin – which is both speculative and highly volatile. You then have the S&P 500 index – which has a long-standing track record that spans almost 100 years.

With that said, if you are the type of investor that wants to take no risk whatsoever, the best option on the table for you is likely to be savings bonds. These are essentially fixed-rate savings accounts that have a minimum lock-up period. This means that you can’t touch the money until the savings bonds period is up – which can be anywhere from a few months to 5 years.

uk savings bonds FSCS

Crucially, the vast majority of savings bonds in the UK market are issued by banks and building societies. In turn, this means that your money should be covered by the FSCS. This means that if the worst happened and the institution went bust – your money would be protected up to the first £85,000.

In simple terms, as long as you don’t have more than £85,000 invested, the risks are virtually non-existent (barring a much larger economic collapse). That’s the good news. The bad news is that the interest rates on UK savings bonds are super-low. In fact, at the time of writing, the best rate in the market is 1.05% – which is offered by FSCS-protected Zopa.

This means that by investing 1000 pounds, you’ll receive an interest payment of just £10.50. The savings bonds offered by Zopa require you lock your money away for 5 years too, so you’ll be missing out on other investment opportunities. And of course, at 1.05%, you are barely beating the rate of inflation – if at all.

Your capital is at risk.

How to Choose Smart 1000 Pounds Investments

As you likely know, there are thousands upon thousands of ways to invest 1000 pounds – all of which can be facilitated from the comfort of your home.

Although choice is always a good thing, this does make it difficult to know which investments to consider – espcially if you are a first-timer. Crucially, it’s always best to select your own investments as opposed to relying on third-party financial advice.

With this in mind, below we explain how to invest 1000 pounds UK on a do-it-yourself basis.

Risk

Perhaps the first thing that you should consider when thinking about how to invest 1000 pounds UK is the amount of risk you feel comfortable taking. As we have already discussed, all financial investments carry an element of risk – with the exception of FSCS-backed savings bonds.

The amount of risk attached to each investment will vary by a country mile. On the flip side, the more risk that you take with an investment, the more returns you should expect. For example, Bitcoin has increased in value by over 1,000% in the past 12 months. This means that a 1000 pounds investment into Bitcoin 1-year ago would now be worth 10,000 pounds.

how to invest 1000 pounds on eToro

However, had you invested in Bitcoin in February 2020 when it was worth $10,000 and cashed out a month later when it had dropped to $5,000 – you would have lost 50%. This means that your 1000 pounds investment would have been worth just 500 pounds. The key point here is that you need to assess how much risk you are willing to take before you invest.

Potential Returns

On the other side of the coin is how much you are looking to make by investing 1000 pounds. Although future returns are difficult to predict with any certainty (unless investing in fixed-income assets like bonds), we can make certain projections by looking at the historical performance of the asset.

For example, since the S&P 500 index was launched in 1926, it has provided annual annualized returns of 10%. In the case of established blue-chip stocks like Johnson & Johnson, the potential returns are going to be slightly more modest. At the other end of the scale, you have growth stocks like Tesla and Square, which netted returns of 700% and 250% in 2020 alone.

Type of Returns

When thinking about how to invest 1000 pounds UK, you need to evaluate the type of financial returns that you seek. For example, some investments generate returns in the form of regular income. This includes bonds, which pay a fixed coupon – so you always know how much you’re going to make.

how to invest 1000 pounds on eToro

In other cases, some investments only generate returns in the form of capital gains. A prime example of this is Amazon – which doesn’t pay dividends but has rewarded stockholders handsomely in recent years in the shape of an ever-growing share price.

And then you have investments that generate returns in two ways – capital gains and dividends. An example of this is ETF index funds like the S&P 500 and Dow Jones. Not only will your investment increase in line with the value of the shares within the index basket, but also via quarterly dividend payments.

Diversification

If you’re a complete newbie and wondering how to invest 1000 pounds UK in a risk-averse manner, then you must consider a long-term diversification plan. This simply means that you won’t be putting the entire 1000 pounds into a single asset or market.

  • For example, if you invested 1000 pounds into Tesla and then the stocks crashed (like they briefly did in March 2020), you stand the chance of losing a considerable amount of money.
  • But, if you only allocated 5% of your portfolio to Tesla, then the damage wouldn’t be felt anywhere near as much.
  • Plus, there is every chance that your other investments performed well, which would counter the loss experienced with Tesla.

There are many ways that you can create a diversified portfolio. For example, if you invested 1000 pounds into the S&P 500 index, you are instantly diversifying across 500 different stocks. But, you should perhaps take things to the next level.

For example, instead of investing everything into one index fund, why not consider other asset classes, too? This might include a selection of bonds, gold, and even currencies.

As a side tip, if you do want to create a diversified portfolio, you’ll want to use a commission-free broker like eToro. Otherwise, you will be charged a flat rate on each and every investment you make – which will very quickly add up.

Ability to Cash Out 

You also need to consider how ‘liquid’ your 1000 pounds investment is. In investment jargon, this simply means how easy or difficult it is for you to sell the asset back to pounds and pence. Your ability to do this will ultimately depend on the type of asset you choose to invest in.

For example, when you invest in stocks or ETFs, you can cash your investment out at any given time during market hours. Once you do, it’s just a case of requested a withdrawal from your chosen broker and waiting 2-3 days for the funds to arrive. But, if you were to invest 1000 pounds into bonds – your ability to cash out would be heavily restricted.

Minimum Investment

Don’t forget that there is often a minimum investment amount attached to assets. For example, if using an old-school brokerage firm – you will need to buy at least one stock.

Sometimes, you need to meet a minimum lot size – for example, 10 stocks. This would require a significant investment when opting for US-listed stocks, as they are priced in dollars. In the case of Amazon, a single stock is currently trading for more than $3,200 – or about 2300 pounds.

how to invest 1000 pounds on eToro

Then you have ETF index funds, which typically require a minimum investment of about 500 pounds. Bonds are even more difficult to access with a small amount of capital, as this often requires a minimum investment that runs into several thousand pounds. And then you have Bitcoin – which has since traded at over 35,000 pounds per coin.

The good news is that there are a selection of UK stock brokers that now offer fractional ownership. For example, eToro allows you to invest in Bitcoin from just £18-ish and stocks/ETFs from just £40-ish. With an investment budget of 1000 pounds, this allows you to create a highly diversified basket of assets.

Best Brokers to Invest 1000 pounds UK

etoro fcaIrrespective of how you plan on investing 1000 pounds, you will need to use an online broker to facilitate the transaction.

There are hundreds of such platforms available in the online space, many of which are regulated by the FCA and partnered with the FSCS. You do, however, need to keep an eye on fees and commission, supported payments, and minimum investments.

To point you in the right direction, below we discuss a small selection of UK brokers to consider when investing 1000 pounds online.

1. eToro – Best UK Broker to Invest 1000 Pounds 0% Commission

etoro logoWe have mentioned eToro several times in this How to Invest 1000 Pounds UK Guide – and for good reason. The FCA-regulated broker – which now has more than 17 million clients, allows you to invest in a full range of popular assets. In fact, apart from savings bonds, eToro supports all of the investments that we have discussed on this page.

This includes an asset library that consists of over 2,400 shares from 17 UK and international markets, bonds ETFs and stock market index funds, cryptocurrencies, commodities, forex, and more. Best of all, this top-rated broker is 100% commission-free. This means you won’t be charged anything to buy and sell assets, and there is no ongoing platform fee.

etoro spreads

As we mentioned earlier, eToro also supports fractional ownership. This means that you can invest from just $25 in crypto and $50 in stocks and ETFs. We also noted that eToro offers a couple of passive investment tools. This includes Copy Trading – which allows you to mirror an experience day trader or investor. You also have heaps of CopyPortfolios – which covers everything from tech stocks, growth stocks, cryptocurrencies, and ETFs.

An additional benefit of choosing eToro is that the broker is suited for newbie investors. Both the website and mobile app are easy to use and there is no overly confusing investment jargon. Getting started with eToro takes just minutes and you can instantly deposit funds with a UK debit/credit card or e-wallet. And of course – your money is safe at the broker, as its FCA regulated and covered by the FSCS.

Pros

  • 0% commission broker
  • No stamp duty tax on UK shares
  • Over 2,400 global shares and 250 ETFs
  • CFD markets also offered
  • Social network with copy trading
  • Regulated by the FCA
  • FSCS partnered

Cons

  • Withdrawal and inactivity fees

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

 

2. Fineco Bank – Low-Cost Broker With Thousands of Traditional Assets

Fineco logo

If your chosen investment is not hosted by eToro, then the next option on the table is Fineco Bank. This trusted provider is backed by an Italian investment bank – and s fully-licensed by the FCA. FSCS protections are also in place, so the safety of your funds should not be a concern.

For us, Fineco Bank stands at because of the sheer size of its asset library. For example, you can invest in thousands of UK stocks from the FTSE 100, you can invest in FTSE 250, and even the Alternative Investment Market (AIM). The platform also covers thousands of international stocks from dozens of exchanges and markets.

Fineco Bank is also strong when it comes to ETFs, index funds, and pre-made portfolios. Perhaps the main drawback with Fineco Bank is that it does not support cryptocurrencies or Copy Trading tools. Additionally, although Fineco Bank is a low-cost broker, it’s nowhere near as cheap as eToro. For example, you’ll need to pay £2.95 per UK stock trade, and $3.95 on US shares.

You also need to pay a small fee for each interntional exchange that you invest in. This can quickly add up if you’re planning to create a diversified portfolio of non-UK assets. You also need to factor in a 0.25% annual platform fee. On the flip side, the minimum investment is just £100 on Fineco Bank and you can easily transfer funds from your UK bank account.

Pros

  • Charges just £2.95 per trade when buying and selling shares
  • $3.95 on US-listed stocks
  • Access to thousands of UK and international shares
  • Deposit funds with a UK bank account
  • Heavily regulated, including an FCA license
  • Suitable for both newbies and seasoned investors
  • Great research and educational department

Cons

  • 0.25% annual fee

Your money is at risk.

 

How to Invest 1000 Pounds UK: The Verdict?

This guide has covered the ins and outs of how to invest 1000 pounds UK. We have discussed a full range of investments to consider – including everything from index funds, ETFs, and tech stocks to Bitcoin, savings bonds, and Copy Trading.

Ultimately, the specific assets that you invest in must be determined by two key factors – your attitude to risk and your long-term financial goals. This will ensure that your are investing your 1000 pounds into an asset that are right for you.

And of course, if you want to invest 1000 pounds from the comfort of your home – you’ll need to use a trusted FCA broker. We like eToro – which offers thousands of financial markets – all of which can be traded commission-free and at low minimums.

eToro – Best Broker to Invest 1000 Pounds UK

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

 

FAQs

How can I invest 1000 pounds in UK?

In order to invest 1000 pounds in the UK, you first need to find an online broker or trading platform that supports your preferred asset. In some cases, you'll have access to stocks, ETFs, mutual funds, bonds, crypto, and more. Alternatively, if you are looking for a tax-efficient way to invest, Stocks and Shares ISAs are tax-free up to the first £20,000 annually.

What is the best way to invest 1000 pounds?

There are thousands of potential investments that you have at your disposal. Whether you opt for stocks, bonds, or index funds - the investments you choose must mirror your financial goals and crucially - your attitude to risk.

Is it worth investing 1000 pounds in the stock market?

Compared to the money you can make from bank account interest, the stock markets offer a significantly higher return potential. But of course, you also need to consider the risks involved. This is why many risk-averse investors in the UK will opt for an index fund - as this allows them to diversify across hundreds of individual stocks.

Should I invest 1000 pounds in Bitcoin?

Although Bitcoin is by far the best-performing asset over the past 10 years, it is also the most speculative and volatile. As such, if you do decide to invest in Bitcoin, you should keep your stakes modest, diversify well, and consider a dollar-cost averaging strategy.

How to invest 1000 pounds UK risk-free?

All investments carry an element of risk - that's just the nature of the game. With that said, if you want to take no risk whatsoever, then you'll likely need to consider Cash ISAs, UK Gilts (government-issued bonds) or FSCS-backed savings bonds. All of these investments pay a very low yield - which is often less than 1%.

Kane Pepi

About Kane Pepi PRO INVESTOR

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.

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