Investing: Investment platforms
InvestingSee how investment platforms work, the fees to look out for and what to check before choosing where to invest.
Transcript
Ever wondered how people actually buy shares or invest in funds? That’s where investment platforms come in. Think of them as the apps or websites that make investing possible. If you’d like a hands-on approach, then a share dealing platform may help. This allows you to pick specific shares and funds. You can identify these after you’ve done your research. On the other hand, you might want more support and are happy following the decisions of fund managers.
Platforms that only offer access to investment funds may be better here. Just remember – whatever platform you pick, always check the risks and fees first. Before embarking on any investment journey, make sure you do your research. Explore all of the different options and make sure you understand the risks and fees involved. When you’re choosing an investment platform, pay close attention to the fees. Some charge an ongoing fee, usually a percentage of your investments. Others add a fee each time you buy or sell shares or funds. These costs can quickly add up and eat into your returns. Some platforms let you set up regular payments by direct debit so your investments can run automatically. This is known as a ‘set and forget’ approach.
It’s also worth checking how much you need to get started. Some platforms ask for a larger upfront investment – maybe £500 or more. Others let you begin with as little as £1. The bottom line? Always compare fees and requirements before you commit. A small difference in charges today can make a big difference to your future returns.
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