As more individuals turn to investing, the landscape is rapidly evolving, with low-cost stocks and shares ISAs leading the charge. The latest data reveals that since 2020, the proportion of adults in the UK engaging in investment activities has increased from one in four to one in three. This shift, highlighted in Boring Money’s Online Investing Report, underscores a growing desire among consumers to seek better returns compared to traditional cash savings.
The Shift Towards DIY Investing
Historically, many novice investors gravitated towards established brands offering ready-made portfolios. However, the current trend indicates a significant move towards DIY investing. A notable 55% of investors now prioritise low annual fees when selecting their platforms, reflecting a keen awareness of the long-term costs associated with investing.
Traditional investing platforms typically impose annual fees ranging from 0.25% to 0.45%, alongside trading commissions. While these figures may appear modest, the cumulative effect can be substantial. For instance, a 0.45% fee on a £50,000 lump sum investment over 20 years, with an assumed annual return of 7%, could result in nearly £30,000 in fees. In contrast, newer platforms are emerging that aim to eliminate or significantly reduce these costs, operating on tighter profit margins and utilising alternative revenue streams.
Top Low-Cost Investing Platforms
When exploring the best low-cost investing platforms, potential users should consider factors such as user-friendliness, reputation, and unique features. Here’s a breakdown of several noteworthy options that cater to a variety of investing styles and preferences.
Trading 212: The Crowd Favourite
Trading 212 has captured the attention of first-time investors, with around 42% opting for this platform in 2025. Its standout feature, “Pies,” allows users to create diversified portfolios of shares and ETFs, whether by designing their own or mirroring successful investors. With minimal fees—except for a 0.7% charge on card deposits exceeding £2,000—this platform also pays interest on uninvested cash, making it an attractive choice for many.
eToro: Learning and Social Investing
For those eager to enhance their investment knowledge, eToro offers a robust suite of educational resources, including webinars and podcasts. Its social investing capabilities enable users to follow seasoned investors and earn rewards by having their strategies replicated. However, prospective users should note the $10 monthly inactivity fee for accounts that remain dormant for a year, which makes it less suitable for passive investors.
Robinhood: For the Risk Takers
Robinhood appeals to more experienced investors willing to take on higher risks. This platform simplifies trading in futures and stock options—products that can yield significant returns but also entail the risk of substantial losses. Fees apply to each contract, and foreign exchange costs may arise when converting funds to US dollars for trading. While Robinhood doesn’t currently support UK shares, this feature is anticipated to launch soon.
IG: Advanced Trading Options
IG caters to those with a more sophisticated understanding of investing, offering not just straightforward investments but also complex products like spread bets and contracts for difference (CFDs). While it provides an extensive array of tools and information, users should be aware that these advanced trading options carry higher fees and risks, including the potential to lose more than their initial investment.
FreeTrade and InvestEngine: Simplicity at Its Best
For investors seeking straightforward, commission-free options, FreeTrade provides easy access to shares, bonds, and funds via an ISA or general investment account. However, its FX fees may deter some. On the other hand, InvestEngine targets those interested in low-cost ETFs, allowing users to invest without complex decision-making. Both platforms represent excellent gateways for new investors embarking on their investment journeys.
Making the Right Choice
With a plethora of low-cost investing apps available, beginners have the freedom to experiment and discover which platform aligns best with their preferences. The low-cost model encourages users to trial different services, minimising the risk associated with their initial choices. Importantly, there is no restriction on opening multiple ISAs over time, allowing investors to adapt their strategies as they gain experience.
Why it Matters
The expansion of low-cost stocks and shares ISAs is transformative for the investment landscape in the UK. As more individuals seek to grow their wealth through investing rather than relying solely on savings, these platforms provide accessible, affordable options. This shift not only empowers consumers to take control of their financial futures but also fosters a more informed and engaged investing public, capable of navigating the complexities of the financial markets. Ultimately, as the investment culture flourishes, it could lead to a more financially literate society, equipping individuals to make sound decisions that benefit their long-term financial health.
