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Richard Berry
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General Investment Accounts (GIAs) let you buy and hold assets like shares, investment funds, exchange-traded funds (ETFs), and bonds. Whether you’re a DIY investor or prefer expert guidance, a GIA gives you the power to build your ideal investment portfolio.
Compare Top Rated General Investing Accounts
Compare the best General Investment Accounts (GIAs) to find the right fit for you. See which platforms offer DIY investing and which ones are managed by pros. Find your ideal GIA and start investing today.
| GIA Account | GIA Fees | Good For | Customer Reviews | GMG Rating | More Info |
|---|---|---|---|---|---|
 | 0.6% | Regular Investing | Start Investing Capital at risk |
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 | £0 | Everything | Start Investing Capital at risk |
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 | 0.75% | Manged Portfolios | Start Investing Capital at risk |
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 | From £4.99 a month | Fixed Fees | Start Investing Capital at risk |
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 | 0.25% (capped at £3.50 pm) | Low Costs | Start Investing Capital at risk |
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 | £24 per quarter | Active Investors | Start Investing* Capital at risk |
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 | Shares: £0 Funds: 0.45% | All-Rounder | Start Investing Capital at risk |
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 | €10 per month or 0.12% | Advanced Investors | Start Investing Capital at risk |
Our Picks Of The Best General Investment Accounts
The experts at Good Money Guide have tested and ranked the best FCA-regulated investing platforms and accounts in the UK.
Methodology: Our experts hand-picked the best investment accounts based on:
- User feedback: We analysed over 30,000 votes and reviews in the prestigious Good Money Guide annual awards
- Unbiased, real-world testing: Our team tests each GIA provider with real money to ensure you have a seamless and user-friendly experience
- In-depth feature comparison: We conduct a thorough comparison of features, highlighting those that make each stockbroker stand out from the competition
- Exclusive insights from the top: Our exclusive interviews with GIA provider CEOs provide insider perspectives and valuable information to help you make informed decisions
AJ Bell: Best Overall General Investing Account
🏆Award Winner🏆
- Investments: Shares, ETFs, bonds & funds
- Minimum deposit: £500
- Account types: GIA, ISA, SIPP, JISA, JISA, JSIPP
- Account charge: 0.25% annual charge
- Dealing fee: Shares £3.50 – £5, funds £1.50
Good Money Guide Review
Product Name: AJ Bell General Investing Account
Product Description: AJ Bell’s GIA is most suited to investors who are price sensitive and want the cheapest overall investment platform for starting to grow a small investment portfolio. AJ Bell offers share dealing in over 24 stock markets, bonds, ETFs and over 2,000 funds (of which around 500 are investment trusts), including a range of the company’s own funds that have been created in-house so you can invest by how much risk you want to take, or by theme or region. Capital at risk
Is the AJ Bell general investing account worth it?
Yes, AJ Bell’s general investing account is one of the cheapest and safest ways to invest outside your tax-free allowance (SIPPs & ISAs) for longer-term investors in the UK.
AJ Bell won our award for “Best Investing Account 2024” due to their excellent market access, low costs and customer service scores in our annual survey.
Is AJ Bell a good general investment account?
AJ Bell’s GIA is most suited to investors who are price sensitive and want the cheapest overall investment platform for starting to grow a small investment portfolio. AJ Bell offers share dealing in over 24 stock markets, bonds, ETFs and over 2,000 funds (of which around 500 are investment trusts), including a range of the company’s own funds that have been created in-house so you can invest by how much risk you want to take, or by theme or region.
AJ Bell GIA Fees:
AJ Bell charges 0.25% of the value of your for a general investment account, but share account fees are capped at £3.50 a month. Dealing costs are £1.50 for funds and £9.95 for shares but drop to £4.95 where there were 10 or more online share deals in the previous month.
Special Offers:
- Recommend a friend, and you’ll both get £100 gift vouchers – When you recommend a friend to AJ Bell who invests more than £10,000 in a SIPP or ISA, you and your friend can get One4All gift vouchers worth £100.
- Switch your share dealing account and receive up to £500 to cover exit fees – If you transfer your share dealing general investment account valued at more than £20,000 to AJ Bell they will help cover any exit fees charged by your current provider. They will cover £35 per investment moved and up to £100 for general exit fees, up to an overall maximum of £500 per person.
- Free subscription to Shares Magazine worth £220
Get a free subscription to Shares (worth over £220 per year) by maintaining a balance of £4,000 or more across your AJ Bell investing accounts.
AJ Bell General Investing Platform:
AJ Bell’s investment platform is functional and well laid out. Key share and fund information is available to view at the time of execution.
Pros
- Pick your own shares, funds and bonds or use their investing ideas
- Low account fees capped at £3.50 a month for shares
- Lots of accounts types
Cons
- High phone dealing charges
- Limited hedging options
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Excellent
(5)
Overall
5Saxo: Best Investment Platform For Experienced & Professional Investors
- Investments: Shares, ETFs, funds, bonds
- Minimum deposit: £1
- Account types: GIA, ISA, SIPP, derivatives
- Account charge: €10 per month or 0.12%
- Dealing fee: Shares 0.1% – 0.05%
Good Money Guide Review
Product Name: Saxo General Investment Account
Product Description: Saxo’s GIA is one of the most advanced accounts for UK long-term investors with access to more than 50 stock exchanges around the world with 22,000 instruments available to invest in. Saxo Markets’ forte is as a trading platform for professional and institutional short and medium-term speculators as they provide direct market access and very low commissions. A good choice for large active investors.
Is Saxo good for investing?
Yes, as well as being one of the best trading platforms, Saxo also have very good investment accounts for long-term investments. Saxo has recently introduced mutual funds for investors who want to quickly build a diversified portfolio.
For income investors, you can access a huge range of retail and institutional-grade bonds.
But, I would say that Saxo remains more of a trading platform than an investing account. So if you are primarily a high-risk trader and you want to incorporate some longer-term “safer” investments into your portfolio, Saxo is a good place to invest alongside your shorter-term speculation. Saxo is also one of the best brokers to receive interest on your uninvested cash.
Compared to other retail investing accounts like eToro, Saxo is a much better option because of market range, customer service and tax free wrappers like ISAs and SIPPs.
Fees:
Saxo Markets charge EUR10 a month or 0.12% a year based on the value of your portfolio (depending on which is higher). If you have a VIP account this fee is reduced to 0.08%. Dealing charges are commission based as a percentage of transaction size. They are very competitive, though and UK shares trading commission starts at 0.1% (£100 if you buy £100,000 worth of stock) and drops to 0.05% for more active traders.
Special Offers:
- Platinum – if you have £200,000 or more on account, you can apply for 30% lower transaction and account costs.
- VIP – For accounts with portfolios over £1m, you get even better pricing, direct connection to experts, 1:1 SaxoStrats access and propriety event invitations.
General Investment Platform:
Saxo Markets’ investment platform provides exceptional access to the global markets.
Pros
- Direct market access
- Excellent platform
- Low commissions
Cons
- May be too complicated for beginners
- Subscription fees for live pricing
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Excellent
(5)
Overall
5IG: Best Investing Platform For A Mixture Of High & Low-Risk Investing
👍 Featured 👍
- Investments: Shares, ETFs, investment trusts & pre-made portfolios
- Minimum deposit: £250
- Account types: GIA, ISA, SIPP, derivatives
- Account charge: £24 per quarter
- Dealing fee: Shares £3 – £8
Good Money Guide Rating
Product Name: IG General Investment Account
Product Description: IG is primarily a trading platform (and one of the best ones at that) but also has an investment account through which clients can deal in physical stocks and shares, including ETFs in the UK, Europe, US and Asian markets. If you do not want to choose your own stocks, IG also has a managed investment product called “Smart portfolios”, which are pre-made diverse portfolios with exposure to the global markets through shares, bonds, property and commodities. A good choice for traders also looking for a cost-effective way to hold long-term investments in a general investment account, stocks and shares ISA or SIPP. Capital at risk
Is IG a good general investment account?
Yes, we rank IG as one of the best combined investing and trading platforms in the UK. You can invest with IG through a General Investment Account, ISA or SIPP in either individual stocks or through pre-made SMART portfolios. One thing that does let IG down though is their access to funds and bonds where you will be better served by a traditional stock broker like Hargrave Lansdown. IG cannot also provide advice on investments like Bestinvest.
Fees:
IG charges a flat custody fee of £24 a quarter (£96 a year) for general investing accounts. However, if you have more than £15,000 in a Smart Portfolio managed fund or place over three trades per quarter that fee is waived. Standard dealing fees are £8 for UK and £10 for US shares. Smart Portfolio fees are 0.5% – capped at £250 per year. Fund management charges are 0.13% and transaction costs are 0.09%.
Special Offer:
- Free US stock investing – There is zero commission on US share trades and just £3 on UK share trades when you trade three or more times a month.
Investing Platform:
IG’s investment platform is the same as their trading interface so it will be familiar to their short-term speculators. It provides a good visual of investments with associated news and analysis.
Pros
- Low-cost investing account
- UK & international shares
- Pre-made portfolios
Cons
- Also provides access to high-risk investment products.
- Limited investment funds
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Excellent
(5)
Overall
5Interactive Investor: Best Fixed Fee General Investing Account & GIA
- Investments: Shares, ETFs, bonds & funds
- Minimum deposit: £1
- Other account types: GIA, ISA, SIPP, JISA
- Account charge: From £4.99 per month
- Dealing fee: £5.99
Good Money Guide Review
Product Name: Interactive Investor General Investment Account
Product Description: II’s GIA won our award for best general investment account in our 2023 and 2022 awards as they offer an excellent fixed-fee pricing model, which is a good choice for investors with over £10,000 to invest. Interactive Investor’s fixed-fee model means that your total account costs remain low no matter how big your portfolio gets. You can also invest in a huge range of markets, from UK and international shares to funds, trusts, bonds and ETFs. Capital at risk
Is Interactive Investor a good general investing account?
Yes, II’s GIA won our award for best general investment account in our 2023 and 2022 awards as they offer an excellent fixed-fee pricing model, which is a good choice for investors with over £10,000 to invest. Interactive Investor’s fixed-fee model means that your total account costs remain low no matter how big your portfolio gets. You can also invest in a huge range of markets, from UK and international shares to funds, trusts, bonds and ETFs.
ii GIA Investing Platform
Interactive Investor’s investment platform is very easy to use and gives lots of market data on potential investments.
Interactive Investor GIA Fees
A GIA with ii costs from £4.99 a month for a general investing account with Interactive Investor’s Investor Essential plan. Dealing commissions are a free trade every month, then UK Shares and Funds, US Shares are £5.99. You can set up regular orders as small as £25 for free with ii’s Regular investing service.
Special Offers
- One free trade per month – One buy or sell order is free every month, after that, the cost is between £3.99 and £5.99, depending on what plan you are on.
- Free investing for your friends and family – You can give up to five people a free investment account subscription with Interactive Investor’s Friends and Family plan. You pay a single extra fee of £5 a month, and their monthly cost is zero. Each member can invest up to £30,000 in an ISA or a general investing account with free regular investing and no account fees. However, they will still pay normal dealing commissions when they buy and sell investments.
- Get £200 when you refer a friend to Interactive Investor – Recommend a friend or family member to ii and get a £200 reward. Your friend will get their first year’s service plan for free – saving £120. To qualify, your friend must transfer or fund their account with at least £10,000 in combined cash/investments. However, your friend will not receive the usual monthly free trade.
Is Interactive Investor GIA better than their ISA?
Interactive Investor’s GIA is better than an ISA if you have lots of money to invest as you only tax-free allowance of £20k per year for individual savings accounts, so anything above that you should invest in a general investment account. However, if you only have a small amount of money to invest (less than £20k) you are better off investing it in an II ISA, rather than an II GIA as in an ISA your profits will be tax free.
Pros
- Pick your own investments or use their model portfolios
- £1 minimum deposit makes it easy to get started
- Fixed account fee that does not increase with your investments
- Joint account options
Cons
- Fixed fee expensive for very accounts below £1,000
- No Lifetime ISA account
- No Junior SIPP account
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Excellent
(5)
Overall
5Hargreaves Lansdown: Excellent Added Value Investment Platform
- Investments: Shares, ETFs, bonds & funds
- Minimum deposit: £1
- Account types: GIA, ISA, SIPP, JISA, JISA, JSIPP
- Account charge: Shares £0, funds 0.45%
- Dealing fee: Shares £5.95 – £11.95, funds £0
Good Money Guide Review
Product Name: Hargreaves Lansdown General Investment Account
Product Description: Hargreaves Lansdown is good for investors looking for an investment platform that provides more added value than just somewhere to buy and sell shares. HL offers the most account types of all the investment platforms we compare, including a general investment account, stocks and shares ISAs, lifetime ISAs, and junior ISAs. Plus, they have one of the best research portals to help you choose your own investments. They also have some of the widest market coverage, including thousands of UK and international shares, over 3,000 funds, ETFs, investment trusts, and corporate bonds.
Capital at risk
Is Hargreaves Lansdown a good general investment account?
Hargreaves Lansdown is good for investors looking for an investment platform that provides more added value than just somewhere to buy and sell shares. HL offers the most account types of all the investment platforms we compare, including a general investment account, stocks and shares ISAs, lifetime ISAs, and junior ISAs. Plus, they have one of the best research portals to help you choose your own investments. They also have some of the widest market coverage, including thousands of UK and international shares, over 3,000 funds, ETFs, investment trusts, and corporate bonds.
HL GIA Fees:
There is no account charge for shares in a general investment account with Hargreaves Lansdown. Funds are charged at 0.45% for the first £250,000. There is no charge for buying funds, but shares are charged at £11.95 per deal or £5.95 if you do over 20 deals per month.
Hargreaves Lansdown General Investing Platform:
Hargreaves Lansdown investment platform is one of the best around. HL provide a huge amount of technical and fundamental data to help you choose investments.
Should you open a Hargreaves Lansdown GIA or ISA?
I’d say open a GIA after you have exhausted your ISA allowance. With a Hargreaves Lansdown general investment account, you can invest as much as you like but with an ISA you are limited to £20k a year in the tax-free wrapper.
Pros
- Thousands of UK and international shares, bonds & funds
- Ready-made portfolios with different levels of risk
- Excellent research and analysis
- An established and listed company on the LSE.
Cons
- Can be expensive for large fund portfolios
- Data not as good as it used to be
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Excellent
(5)
Overall
5Moneyfarm: Simple Risk-Based Investment Portfolio Platform
- Investments: Pre-made portfolios
- Minimum deposit: £500
- Account types: GIA, ISA, Pension, JISA
- Account charge: 0.75% annual charge
- Dealing fee: £0
Good Money Guide Review
Product Name: Moneyfarm General Investment Account
Product Description: Moneyfarm’s GIA is a digital wealth manager and makes setting up a diverse investment account easy and cheap. As with other robo-advisors, you cannot buy individual stocks, but instead choose to invest in any of their seven risk-based portfolios through a stocks and shares ISA, a pension or a general investment account.
Is Moneyfarm's GIA a good investment account?
Moneyfarm is a trusted investment account based on our metrics of regulation, size and products. The GIA is not as good as the Moneyfarm ISA for your first £20k invested each year though as you have to pay capital gains on any profits outside of your ISAs.
Fees:
Moneyfarm investing account fees are scaled between 0.75% for accounts between £500 and £50,000, then above £100k are 0.45% to 0.35%. Average investment fund fees are 0.2% and the average market spread when buying and selling is 0.10%
Investing Platform:
Moneyfarm’s investment platform is like a big quiz directing you towards the most appropriate portfolio based your responses to risk-based questions.
Pros
- Risk-based portfolios
- Low-cost investing
- Easy-to-use
Cons
- Limited amount of individual shares
- No US shares available
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Excellent
(5)
Overall
5Interactive Brokers: Best GIA Platform For International Investing
- Investments: Shares, ETFs, bonds & funds
- Minimum deposit: £1
- Account types: GIA, ISA, SIPP, derivatives
- Account charge: £0
- Dealing fee: Shares £1 – 0.05%
Good Money Guide Review
Product Name: Interactive Brokers General Investment Account
Product Description: Interactive Brokers’ GIA is an excellent account for sophisticated investors who want to manage their own portfolios with complex order types. Ideal for active investors who need access to a wider range of investment products like derivatives, options, and futures. IBKR are also one of the cheapest investment platforms across all asset classes, as they were built on offering electronic discount brokerage.
Is IBKR's GIA a good general investment account?
Interactive Brokers’ GIA is an excellent account for sophisticated investors who want to manage their own portfolios with complex order types. Ideal for active investors who need access to a wider range of investment products like derivatives, options, and futures. IBKR are also one of the cheapest investment platforms across all asset classes, as they were built on offering electronic discount brokerage.
IBKR GIA Fees:
There is no account charge for general investment accounts at Interactive Brokers. When you buy and sell shares minimum, dealing commissions are £1 in the UK or 0.05% of the deal size.
Special Offers:
- $200 when you refer a friend to Interactive Brokers – IBKR clients can “Refer a Friend” and earn USD 200 for each qualified referral while giving their friend the opportunity to earn up to USD 1000 of IBKR stock.
IBKR GIA Investing Platform:
Interactive Brokers’ investment platform is a slimmed down version of their exceptional desktop trader station. For investing it gives you a good overview of shares and funds.
What is the Interactive Brokers general investment account?
Interactive Brokers GIA, is thier IBKR “universal account” that lets you invest in all asset classes via physical shares, CFDs, futures, options or funds.
Pros
- Excellent market coverage
- Advanced investment platform
- Low-cost investing
Cons
- Customer service can be slow
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Excellent
(5)
Overall
5Wealthify: Start Investing From Just £1
- Investments: Pre-made portfolios
- Minimum deposit: £1
- Account types: GIA, ISA, Pension
- Account charge: 0.6% annual charge
- Dealing fee: £0
Good Money Guide Review
Product Name: Wealthify General Investment Account
Product Description: Wealthify, part of the Aviva Group, lets you invest in either an original portfolio of investments from the UK and overseas or choose an ethical investment plan made from a blend of environmentally and socially responsible investments.
Capital at risk.
Is Wealthify’s GIA a good general investment account?
Wealthify, part of the Aviva Group, lets you invest in either an original portfolio of investments from the UK and overseas or choose an ethical investment plan made from a blend of environmentally and socially responsible investments.
Wealthify GIA Fees:
It costs 0.6% to start investing with Wealthify, which is one of the cheapest robo-advisor general investment account fees. There are also investment costs of on average 0.16% for original plans and 0.7% for ethical plans.
Special Offer:
- £50 when you refer a friend – You can get a unique link when you have a funded Wealthify account to use to recommend them to friends. To get the £50 bonus, your friend needs to invest at least £250 for three months.
Weathlify General Investing Platform:
Wealthify’s investment platform lets you fine-tune your portfolio based on risk, giving good visuals of what it may be worth in the future.
Is Wealthify’s GIA covered by the FSCS?
Yes, if Wealthify were to go bust your funds are protected by the FSCS up to £80k and your portfolio can be moved to another general investment account.
Pros
- Managed portfolios
- Low minimum deposit of £1
- Low account fee of 0.6%
Cons
- Cannot trade individual shares or ETFs
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Excellent
(5)
Overall
5What Is A General Investing Account (GIA)?
A GIA (General Investing Account) is an all-purpose investing account where you can buy and sell stocks and shares (equities), bonds, funds and ETFs. GIA’s don’t offer tax benefits, so they can be a popular choice for investors who’ve already used up their tax allowances.
Investing is a long-term strategy. Financial experts recommend holding investments for at least five years so they ride out short-term fluctuations in the market. GIAs offer a flexible way to build your wealth over time, focussing on long-term growth.
The most popular types of investments for GIAs in the UK are:
General Investing Accounts – Weighing Up The Pros & Cons
Thinking of opening a GIA? Here’s the advantages and disadvantages you should consider:
Pros
- GIAs offer diversity: You can invest in anything from stocks and shares, to commodities, emerging markets, ethical investments and property funds
- They’re tax efficient: You can also open accounts where you do not have to pay tax on profits from some investment accounts, like stocks and shares ISAs
- GIAs tend to be low cost: Many online investment platforms offer a very cheap way to buy stocks and shares
Cons
- Element of risk: It’s possible to lose money as well as make money through an investment platform
- Limited access: Some investment accounts like pensions and lifetime ISAs lock away your money for a certain period of time and charge a penalty for early withdrawal
- Fees: All general investment accounts charge fees and there’s no way to avoid paying something for having long term investments
Which Is The Cheapest General Investing Account?
Cheapest overall
Interactive Brokers is the cheapest overall General Investing Account as it doesn’t charge you a custody fee (also known as an account fee).
Cheapest for large accounts (over £50k)
Interactive Investor is the cheapest investing platform for buying funds and shares, thanks to its fixed fees. Your trading commission remains low at £3.99 for standard accounts with a £11.99 monthly fee.
Cheapest for small accounts
For smaller portfolios, investing apps like Freetrade offer free GIAs. However, these tend to have a limited range of markets and order types unless you upgrade to a premium account type.
How to find the cheapest investment platform
Different brokers have varying custody fee structures. Some, such as Hargreaves Lansdown and AJ Bell, have fee structures that charge a percentage based on the size of your account. Others, such as Interactive Investor and Freetrade offer a flat fee.
For large General Investment Accounts, fixed fees work out cheaper. But if you only have a small amount to start investing with, an account that charges a percentage will help keep your account costs down.
The cheapest account isn’t always the best option. Generally speaking, you tend to get what you pay for with investment platforms. Those that have higher fees tend to offer more investment options, provide better customer service, be more reliable, and provide extras such as investment research and tools.
You should consider pricing carefully because fees and charges can have a big impact on your overall investment returns. Some to think about are trading commissions, annual custody charges, entry fees, and exit fees.
Which General Investment Account Offers Access To The Most Markets?
Hargreaves Lansdown provides access to the widest range of markets through its General Investment Account including:
- UK Shares
- US stocks
- ETFs
- REITs
- Bonds
- Index Funds
- Open-Ended Funds
- Investment Trusts
- ESG and Ethical Investments
- IPOs, New Issues & Placings
Some platforms offer access to a vast range of investments including domestic and international shares, funds, ETFs, and bonds. Others, however, only offer access to certain asset classes or products.
GIA With The Best Customer Service
Hargreaves Lansdown has the best customer service according to clients in our 2022 and 2023 Good Money Guide Awards, relative to the other General Investment Accounts they held.
Some investment providers are better than others when it comes to providing customer support. Service and support can be important, particularly if you are new to investing, as you may need help placing a trade.
Customer service is a vital part of our review process. We take into account user ratings, and also how teach GIA provider performs in our own reviews. Our aim is to recommend you General Investment Accounts that give you flexibility and value, and are backed up by great customer service in the event of queries or support being needed.
Which General Investment Accounts Offer The Most Added Value?
Hargreaves Lansdown offers you the most added value as their platform features:
- Market data
- Fund, share and market analysis
- Multiple order types
- Excellent customer service
- Pre-made portfolios
- Educational videos & webinars
- Investment calculators
Some platforms offer a range of features that can help you make better investment decisions such as research, charts, and stock screeners. Others, however, just offer basic investment services.
Which General Investment Account Offers The Most Account Types?
AJ Bell and Hargreaves Lansdown offer you the most types of investment account as they include lifetime ISAs.
However, in our independent GIA reviews we found that only IG, Hargreaves Lansdown and Interactive Brokers offer access to the full suite of investment types. With that said, Interactive Brokers is more of a trading platform than an investing account and the derivatives offered by HL are actually provided through a partnership with IG.
So, the two accounts that offer the most investment options is technically IG.
| Account Types | | | |  |  |  |  |  | |
|---|---|---|---|---|---|---|---|---|---|
| GIA | ✔️ | ✔️ | ✔️ | ✔️ | ❌ | ❌ | ✔️ | ❌ | ✔️ |
| ISA | ✔️ | ✔️ | ✔️ | ✔️ | ❌ | ❌ | ✔️ | ❌ | ✔️ |
| SIPP | ✔️ | ✔️ | ✔️ | ✔️ | ❌ | ❌ | ❌ | ❌ | ❌ |
| Pension | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ | ✔️ |
| Junior ISA | ✔️ | ✔️ | ✔️ | ❌ | ❌ | ❌ | ❌ | ❌ | ✔️ |
| Junior SIPP | ✔️ | ✔️ | ✔️ | ❌ | ❌ | ❌ | ❌ | ❌ | ❌ |
| Lifetime ISA | ✔️ | ✔️ | ❌ | ❌ | ❌ | ❌ | ✔️ | ❌ | ❌ |
Some platforms offer access to a variety of different accounts such as General Investment Accounts, Stocks and Shares ISAs, Lifetime ISAs, and Self-Invested Personal Pension (SIPP) accounts. Others, though, only offer General Investment Accounts. Tax-efficient accounts such as ISAs and SIPPs can help you minimise your tax liabilities.
✅ FCA Regulation
Your peace of mind matters to us. That’s why every General Investment Account we feature is regulated by the Financial Conduct Authority (FCA). They ensures GIA providers are financially secure, treat customers fairly, and maintain robust compliance standards.
Plus, your funds are safeguarded by the Financial Services Compensation Scheme (FSCS), providing an extra layer of protection and reassurance.
So,What Is Investing?
Before we learn how to invest, let’s make sure we’re clear what it is – and isn’t. Investing is a way of growing your money over the long term. Not to be confused with ‘saving’, it involves putting money into financial assets – such as shares or bonds – in the hope of obtaining higher returns than those offered by savings accounts.
Investing has many benefits. For example, it can help you:
- Achieve your financial goals – By investing your money, you can grow your wealth significantly over time
- Take advantage of the power of compounding – Compounding is the process of generating earnings on an asset’s previous reinvested earnings. Over time, it leads to exponential growth of an investor’s capital
- Protect your money from inflation – If you keep your money in a savings account, it may lose value over time due to inflation. By investing your money, and obtaining a higher rate of return on it, you can potentially protect it from inflation
- Diversify your income streams – By investing your money, you can diversify your income streams and increase your chances of achieving financial security
The terms ‘investing’ and ‘trading’ are often used interchangeably. However, there are key differences between the two financial strategies. Generally speaking, the goal of investing is to build wealth over the medium to long term with buy-and-hold strategies. By contrast, the goal of trading is typically to generate profits in the short term by using more active financial strategies.
Our Finance Expert Says…
How To Invest – 8 Simple Steps For Beginners
Investing is the key to building wealth. Today, literally anyone can invest their money, as technology has made it very easy to do so. If you’re wondering where to even start when it comes to learning how to invest – you’re in the right place.
Investing has advantages and disadvantages and it’s important to be aware of both.
The main advantages are:
- It’s possible to generate high rates of return on your money
- You can compound your returns over time
- You can protect your money from inflation
- It can help you achieve your financial goals
The main disadvantages are:
- Returns are never guaranteed
- It’s possible to lose money
- It can take time to build wealth
- You may have to lock your money away for a while (depending on the type of account you use)
If you look at this example from Wealthify, you can see over time even making a small initial investment, with regular monthly investments, can be very profitable, as opposed to keeping your money in the bank.
Remember: these are predictions based on past performance and the markets can go up and down – your capital at risk when you invest.
Now we know what investing is, along with its pros and cons – here are the eight steps to get you started:
1) Determine Your Goals And Risk Tolerance
Before you start investing, it’s important to determine your financial goals. The best investments for you will depend on your goals. At this stage of the process, it’s also important to establish your risk tolerance. This will impact the type of investments you choose.
When determining your goals and risk tolerance, it’s a good idea to think about your liquidity requirements. Investing money that you are likely to need in the short term could backfire as you may be forced to sell your investments at the wrong time.
2) Choose A DIY Or A Managed Approach
There are two main ways you can invest:
DIY
With this approach, you’re in charge of selecting your investments. The advantage of DIY investing is that you have more flexibility with your investments and fees may be lower. On the downside, it is more hassle, and more time is needed for research.
Managed
With this approach, you outsource the selection of investments to a third party. The advantages of the managed approach are that it is generally less hassle and can free up time. On the downside, you have less flexibility and fees may be higher.
3) Choose What Types Of Assets You Want To Invest In
There are many different types of assets you can invest in. Here are the most popular:
Stocks
Stocks, or ‘shares’, are investments that represent ownership in a company. Examples of stocks include Apple, Tesla, and Tesco. Stocks are higher-risk assets, however, over the long term, they have historically generated strong returns for investors. For example, since the inception of the S&P 500 index in 1926, it has returned over 10% per year on average.
Investment Funds
Investment funds are collective investments. With funds, your money is pooled together with the money of other investors and spread over a range of different stocks or assets by a professional portfolio manager. The main advantage of investing in funds is that they offer diversification. Another advantage is that, compared to investing in individual stocks, they require less research.
ETFs
An ETF (exchange-traded fund) is a type of investment fund that aims to track the performance of a specific stock market index, industry sector, or asset. ETFs are similar to regular investment funds; however, a key difference is that they are traded on the stock market. This means that they can be purchased and sold just like regular stocks.
Investment Trusts
Investment trusts are a type of investment fund. There are two major differences between investment trusts and regular funds though. One is that investment trusts are closed ended (meaning that they have a fixed amount of capital to invest) while investment funds are open ended. The other is that investment trusts trade on the stock market whereas investment funds don’t.
Bonds
Bonds are fixed-income investments that represent loans made by investors to borrowers. They typically pay a fixed rate of interest to investors for a certain period of time. Bonds are generally lower risk than shares. Therefore, they can help investors create more balanced portfolios.
4) Understand Investment Risks (And How To Manage Them)
Each type of investment has its own unique risks. It’s really important to understand the risks before you invest. Generally speaking, the higher the potential rewards on offer from the investment, the higher the level of risk.
Risk can never be eliminated entirely when investing. However, you can reduce it significantly with simple risk management strategies. Two straightforward ways you can do this are:
- Diversifying your portfolio: Diversification is the process of spreading your money out over many different assets so you’re not over-exposed to any single asset. A well-diversified portfolio will be diversified at two levels – between asset classes and within asset classes.
- Adopting a long-term investment horizon: In the short term, the stock market can be volatile. However, in the long run, the market tends to rise. So, the longer you invest for, the less chance you have of losing money.
A very good way to do this is by buying a fund that invests in the global markets. By investing in a global fund, you are buying into stock markets and companies worldwide in one go. For example, the Vanguard Global Equity Fund, which you can buy through Hargreaves Lansdown will give you exposure to a broad range of 194 stocks in US, UK, Europe, Pacific and Asia.
5) Develop An Investment Strategy
There are many different ways of investing. Some of the most popular strategies include:
- Growth investing – Investing in companies that are expected to grow at a fast rate in the future
- Value investing – Investing in companies that appear to be trading at a discount to their ‘intrinsic’, or true value
- Quality investing – Investing in high-quality businesses that are highly profitable and have financial strength
- Dividend (income) investing – Investing in companies that pay regular dividends to their investors
- Small-cap investing – Investing in smaller, faster-growing companies
- ESG investing – Investing in companies that meet environmental, social, and governance (ESG) criteria
6) Take Advice From The Right People
It’s not hard to find people handing out financial advice today. On YouTube and TikTok, for example, there are thousands of ‘finfluencers’ offering advice on where to invest.
Be careful here. Many of these influencers have no professional financial qualifications. And they are unlikely to have an understanding of your financial goals and risk profile.
If you are looking for investment advice, the best approach is to speak to an Independent Financial Adviser (IFA) or expert wealth manager. They will take time to discuss your goals and risk tolerance and then develop an investment strategy specifically for you.
It’s worth noting that there are some reputable providers of stock tips, such as Seeking Alpha and The Motley Fool. However, it’s important to do your own research in order to ensure that the recommended investments are in line with your goals and tolerance for risk.
If you have a significant amount of money to invest (over £250,000) you should talk to a wealth manager for advice. If you are starting to invest with small amounts robo-advisors (or digital wealth managers) are a good place to start, as they provide online advice and pre-built portfolios to buy into.
7) Understand The Different Types Of Investment Accounts
Before you start investing, it’s a good idea to determine the best type of account to invest in. In the UK, you have a number of options when it comes to investment accounts:
| Type Of Account | Tax Efficient? | Annual Allowance |
| General Investment Account (GIA) A standard investment account with no tax benefits |  | N/A |
| Stocks and Shares ISA A tax-efficient investment account. All investment gains and income are tax-free. |  | £20,000 |
Investment accounts that are open to those aged between 18 and 40. Contributions come with a 25% bonus from the government (up to age 50). However, there is an annual allowance of £4,000 and money cannot be accessed until you turn 60 or buy your first property. Within a LISA, all investment gains and income are tax-free. | | £4,000 |
Self-Invested Personal Pension (SIPP) A government-approved pension account. Within a SIPP, all investment gains and income are tax-free. Additionally, contributions come with tax relief. On the downside, money within a SIPP cannot be accessed until age 55 (57 from 2028). | | £60,000 |
8) Compare Investment Account Providers
Before you open an investment account, it’s worth doing some research into the various account providers in order to find the best account for your needs.
When choosing an investment account provider, there are a number of factors to consider including:
- The investment options available
- The investment tools and research available
- How reliable and trusted the platform is
- The customer service and support
- The provider’s fees and charges
By comparing the options available from the various providers, you can find the right account for you, whether that’s a no-frills, low-cost account, or a comprehensive, full-service account.
Once you have chosen a provider, you can open and fund an account, and start investing. You may also want to consider looking at what investment apps are on the market.
Tip: Use our account finder to help you find the right account for you.
General Investment Account FAQs:
Yes – general investment accounts are regulated by the FCA and can be considered safe. When an investment platform is regulated by the FCA, it is bound by the regulator’s rules and regulations.
FCA-regulated platforms are required to hold client assets and investments separately in the name of a nominee company or authorised third-party custodian. Meanwhile, clients’ cash must be held in trust accounts with authorised UK banks. This adds protection for investors.
If a FCA-regulated platform becomes insolvent, and investors suffer a loss as a result, they will be protected under the Financial Services Compensation Scheme (FSCS) up to £85,000 per client, if you have balances with a single financial institution that exceed this amount, you may wish to consider opening a new account with an investment provider under a separate banking licence to ensure your deposits are fully protected incase of investment broker collapse.
It’s worth stressing that regulation and FSCS protection will not protect you from investment-related losses. When you invest money, your capital is always at risk because of fluctuations in the markets.
Yes, come GIAs are free, for instance, a number of brokers such as Freetrade offer commission-free trading. However, it’s important to be aware of other costs. Freetrade, for example, charges £3 per month for its Stocks and Shares ISA and £9.99 per month for Freetrade Plus (which offers access to more investments). It also charges FX fees of spot rate +0.45% on international shares.
In terms of investing in funds, some brokers such as Hargreaves Lansdown allow you to buy and sell funds commission free. However, these brokers generally charge an annual custody charge on fund investments. Hargreaves Lansdown, for example, charges 0.45% per year on fund holdings up to £250,000.
You can have as many investment accounts as you want. There can be benefits of using several different platforms as some have strengths in specific areas. For example, some platforms are better than others for investing in funds. Others are more cost-effective for share trading. However, it’s generally much easier to manage and monitor your investments when they are all on the one platform.
It’s worth pointing out that you can open multiple Stocks and Shares ISAs. However, you can only pay into one of these ISAs per year and the annual allowance is £20,000.
Generally speaking, GIAs are good for investing after you have used up your tax-free investing allowance within a Stocks and Shares ISA. The key advantage of a Stocks and Shares ISA is that it shelters all your capital gains and income from HMRC. If you invest in a general investing account, you will have to pay capital gains tax on gains and income tax on income received.
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