Investing has become far more accessible over the last decade. What once meant calling a stockbroker or filling in paperwork can now be done from an app in a few minutes, often with no minimum deposit at all. That accessibility is welcome, but it also means there are now dozens of platforms competing for your money, each with a different mix of fees, account types and investment choices — and the right one for you depends heavily on what you're actually trying to achieve.
This guide walks through the main decisions to make before you open an account: what type of account you need, how platform fees actually work, and what to check before committing your money anywhere.
1. Start with the account type, not the platform
Before comparing individual providers, it's worth working out which account type actually matches your goal, since this narrows the field far more usefully than comparing headline fees in isolation.
- A Stocks and Shares ISA wraps your investments in a tax-free shelter, meaning no tax on dividends or capital gains, up to your £20,000 annual ISA allowance (shared with any cash ISA contributions in the same tax year).
- A SIPP (Self-Invested Personal Pension) is designed specifically for retirement saving, offering tax relief on contributions in exchange for your money being locked away until at least your late 50s.
- A general investment account has no special tax wrapper and no annual contribution limit, useful once you've used up your ISA allowance, but any gains or dividend income may be taxable.
Many investors end up using a combination of these over time — an ISA for flexible, tax-free growth, and a SIPP alongside it for retirement-specific saving with its own tax incentives.
2. How platform fees actually work
Investing platforms typically charge in one or more of the following ways:
- A percentage-based custody fee, often tiered so the percentage falls as your portfolio grows, or capped at a maximum monthly fee on some platforms.
- A flat monthly or annual fee, which can work out cheaper for larger portfolios since it doesn't scale with your balance.
- Trading fees each time you buy or sell an investment, which vary significantly between platforms and fund types.
Because these fee structures behave very differently depending on your portfolio size and how often you trade, the cheapest investing platform for a large, rarely-traded portfolio can be entirely different from the cheapest for a small, frequently-traded one. It's worth working out roughly what your typical usage will look like before comparing headline fees.
3. Choosing what to invest in
- If you want broad, low-cost diversification, compare platforms on their ETF range and any dealing charges specific to funds versus individual shares.
- If you're completely new to investing, a platform designed with beginners in mind, with simpler navigation and pre-built portfolio options, can reduce the risk of feeling overwhelmed.
- If you specifically want to buy and sell individual company shares, compare our best investing platforms guide for a broader view of what different providers offer across account types.
4. Safety and regulation
Any platform you use should be authorised and regulated by the UK's Financial Conduct Authority (FCA). This means your cash and investments are covered by the Financial Services Compensation Scheme (FSCS) up to £85,000 if the platform itself were to fail — though it's worth noting this protects against the platform collapsing, not against the value of your investments falling, which is a normal risk of investing rather than something any compensation scheme covers.
5. Investing vs saving
If you're brand new to this decision, it's worth being clear that investing carries risk that a savings account doesn't — your capital can fall in value as well as rise, and there are no guarantees. Money you might need within the next few years is generally better suited to a savings account or cash ISA, while investing tends to suit money you can leave untouched for five years or more, giving it time to ride out market ups and downs.
6. Frequently asked questions
Do I need a lot of money to start investing?
No, many platforms now allow you to start with very small amounts, and some support fractional shares, letting you buy a portion of an expensive share rather than needing the full share price upfront.
Is my money protected if my investing platform goes bust?
Your cash and investments are protected up to £85,000 under the FSCS if a UK-regulated platform fails, though this doesn't protect you against investments simply falling in value, which is a normal risk of investing.
Should I open an ISA or a SIPP first?
It depends on your goal. An ISA offers more flexibility since you can withdraw at any time, while a SIPP is specifically for retirement and locks your money away for longer in exchange for valuable tax relief on contributions.
Can I hold accounts with more than one investing platform?
Yes, there's no restriction on using multiple platforms, and some investors do so deliberately to access different fund ranges or fee structures for different parts of their portfolio.
7. Conclusion
Choosing an investing platform starts with deciding what you're actually saving for and how you like to manage your money, not with chasing the lowest headline fee. Use the guides above to compare platforms for ISAs, SIPPs, ETFs, beginners and overall cost, and make sure whichever provider you choose is FCA-regulated before committing your money.
