If you are new to investing and have decided to manage your investments yourself rather than pay a financial advisor to do it for you, then it’s likely you are in the position whereby you are now having to make an informed decision about which platform to choose. But with so many online platforms now on the market, making the decision as to which one is the best for your needs is becoming increasingly complicated.
Not all investment platforms are created equal and it’s important you know what to look out for when making your decision. Here are some key points to remember:
Safety Must Always Come First
For obvious reasons the safety of the platform handling your cash is a high priority and you should never even consider a platform that is not authorised and regulated by the Financial Conduct Authority. A thorough look at security should also include encryption technology employed by the platform as well as whether they use two-factor authentication. If you intend to do most of your trading using an app then you might want to consider one that has touch and face ID for extra security and to make logging in quick and simple.
Fees Can Seriously Erode Your Gains
Check for trading and non trading fees as these can vary wildly from platform to platform. However, before signing up with the cheapest platform check that they offer everything you require as there is often a sacrifice to be made for a low cost option.
Are They Offering The Right Investments For You?
By now you may have decided to manage your investments yourself from scratch, or, you may want to take more of a back seat and invest in a pre-made portfolio that is managed by the platform. Either way you will need to check that the platform is catering to your requirements. At this point it is also prudent to decide what level of risk you are willing to take and whether you will be investing in a certain area such as US markets, or impact investing. All of this is why Interactive Investor is our number one recommendation
Peter Field is a financial analyst and has written for InvestingReviews.co.uk covering topics from pensions, savings, investments and ISAs. His knowledge of the Investment market has proven invaluable, making his unbiased views and opinions open and honest for everyone. In 2021 Peter retired and is working towards enjoying more of the outdoors with his beloved labrador Millie.