10 min Read
17 Oct 2017

Written by Damien

Damien is one of the most widely quoted money and investment experts in the national press and has made numerous radio & TV appearances. He created MoneytotheMasses.com while working in the City when he became disillusioned with the way the public were left to fend for themselves because they could not afford financial advice.

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Best and cheapest investment platform for £50,000 savings

Cheapest investment platform for £50,000

Cheapest investment platform for £50,000

How to choose the best and cheapest investment platform and DIY investing ISA

In this article we provide a definitive guide to investment platform comparison including the:

Investment platforms explained

  • An investment platform is a website or smartphone app where you can buy and sell investments, such as funds, investment trusts, ETFs, stocks and shares
  • They allow you to invest in these assets either directly or via products such as Stocks and Shares ISAs, Junior ISAs, Lifetime ISAs or a Self Invested Personal Pension (SIPP)
  • As such investment platforms are also known by other names such as fund platforms, online brokers, fund supermarkets, SIPP providers or ISA providers. For the rest of this article we will call them investment platforms for ease
  • Investment platforms are ideal for DIY investors who want to make their own investment decisions (although some offer discretionary management - see best investment platform for beginners) and keep investment costs to a minimum. The cheapest & best investment platform will depend on how much you have to invest and the types of investments you plan to hold
  • Over recent years more investment platform providers have entered the market providing the DIY investor with a wealth of investment choice and services whilst driving down the costs involved with investing
  • DIY investors can now enjoy a whole range of tools together with up to the minute research, often available on their smartphone, to help improve their investment returns. This article sets out the cheapest investment platforms and the best investment platforms (as they are not necessarily the same)
  • DIY investing is no longer the preserve of the wealthy as investments can be made for as little as £5 per month, thanks to the competition between investment platform providers

Investment platform providers

  • There are currently over 21 investment platform providers in the UK.
  • Some investment platforms providers offer only a limited range of investments which you can hold through them while others offer a wider range of investment products
  • When you compare investment platform providers it is advisable to choose one that allows investment in shares and/or funds both directly and via a Stocks and Shares ISA, Junior ISA (JISA) or Self Invested Personal Pension (SIPP)
  • Even if you are looking to invest via a SIPP you shouldn't just focus on finding cheapest SIPP provider as you may want to take out a Stocks and Shares ISA in the future. If you hold them both on the same platform it can reduce costs and make administration easier
  • Therefore selecting the best investment platform with a broad range of investments available will provide you with flexibility going forward
  • Investment platforms are very different in the charges they levy to manage your investment portfolio so make sure you read the information on charges (including SIPP charges) in this article so you can choose the most cost effective investment platform.

Best investment platforms providers

Deciding on the best investment platform provider for you will depend on your personal circumstances and your investment goals. Some are best for those wanting a helping hand, as they offer good tools and guidance, while other investment platform providers may be better for monthly savers, for example.

We've have compared over 20 investment platforms to produce a list of the best and cheapest fund platforms. Note: Moneyfarm and Vanguard do not have a pension product as yet

Best all-round investment platform

Hargreaves Lansdown - (for a combination of cost, investment choice and customer service)

Best investment platform for beginners (someone else manages your money)

Moneyfarm (lowest cost and will run your first £15,000 for free for a year - invest £20,000 or more and they will run your first £20,000 free for 2 years - one of the leading robo-advice propositions), Hargreaves Lansdown - ready made portfolios

Best investment platform for monthly savers

AJ Bell Youinvest

Best investment platform for low dealing charges

Charles Stanley Direct

Best investment platform for tools and research

Hargreaves LansdownFidelity Fundsnetwork

Best investment platform for passive investors

Moneyfarm (lowest cost and will run your first £15,000 for free for a year - invest £20,000 or more and they will run your first £20,000 free for 2 years), Vanguard Investor (although unlike Moneyfarm you will have to pick your own investment funds and manage your portfolio yourself)

Best investment platform for £50,000 investment

To find the best investment platform provider for a portfolio of £50k I have only selected investment platforms that provide the following:

  • Tools
  • Research
  • Model portfolios
  • Available on smartphone
  • No fund switching fees

In making the final choice I did not want to be influenced by cost alone as you should also assess each investment platform provider on the 5 criteria listed above to make sure you choose the best fit for your needs. For the benefit of this research I have also assumed that the investment is in a maximum of 10 funds with a maximum of 10 annual trades invested over 10 years

The research narrowed the choice down to the following 4 investment platforms which I list together with the individual net annual cost.

  1. Charles Stanley Direct (0.25%)
  2. Fidelity (0.35%)
  3. Bestinvest (0.4%)
  4. Hargreaves Lansdown (0.45%)

Cheapest investment platform for £50,000 investment

If you are only interested in keeping costs low, rather than tools and research, you simply need to compare the charges of each investment platform. However, the cheapest investment fund platform depends on the size of your proposed investment and/or existing portfolio as well as the type of investments you want to hold. No one fund platform will be the cheapest for everyone. Therefore you need to compare the charges of every investment platform provider taking the aforementioned factors into account.

Cheapest investment platform for £50,000 invested in funds

If you plan to invest in funds (as most investors do then you can do this easily using our heatmaps. Our ISA and SIPP comparison heatmaps compare over 20 different investment providers to find the cheapest investment platform for you. Simply decide which heatmap is relevant to you (Stocks and Shares ISA or SIPP) below and then focus on the £50,000 column to find out the investment platform provider with the lowest charges.The heatmaps are colour-coded from red (meaning expensive) to green (meaning cheap). If you plan on adding to your existing portfolio then make sure that you check how your chosen investment platform's charges compare at higher portfolio sizes.

Cheapest investment platform for £50,000 investment in shares, ETFs or investment trusts

Platform Year 1 cost
iWeb £75
IG £80
Fidelity* £95

*Fidelity does not allow direct investing in shares. However you can invest in unit trusts, investment trusts and exchange traded funds (ETFs).

Best way to invest £50,000 short term

Investing in funds or shares is a medium to long term investment (in excess of 5 years). Stock markets can be very volatile and investing for the short term is not advised as your investment could reduce in value due to circumstances beyond your control.

If you are looking to invest for the short term then accounts offered by bank and building societies are probably your best option. Click on this link for more information and a useful comparison table - Savings Best Buy Tables.

If you want to invest for the long term and don't know which funds to pick then our 80-20 Investor service will be of interest. Also read how I run my own £50,000 portfolio live on 80-20 Investor.

 

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