Jasmine Birtles
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6 Best Investing Platforms for Students in The UK
Ruby Layram
12th Nov 2024
In case you didn’t know, the sooner you start investing, the more time your money will have to grow. Contrary to popular belief, you do not need to be a high-earner to start investing. In fact, you can start while you’re still a student to maximize long-term returns.
However, investing as a student can feel a bit daunting. You’re already juggling studies, social life, and probably a part-time job. But getting a head start on investing can make a real difference to your portfolio over time. The good news is there are a growing number of investing platforms in the UK designed to make it easier for beginners, including students, to start building wealth, even with small amounts of money.
In this guide, I’ll walk you through some of the best investing platforms for students in the UK, looking at key features, pros, and cons to help you find one that meets your needs.
What Makes a Good Student Investing Platform?
Before I reveal our top picks for student investing platforms, here’s how to differentiate the good platforms from the ones that probably aren’t worth considering.
When it comes to choosing an investing platform as a student, you’ll want to keep things simple. Here are a few things to look for:
Low minimum deposit
Many students don’t have large sums of money to invest, so finding a platform that lets you start small is essential. Some platforms have no minimum deposit, while others may ask for £100 or less to get started. The lower, the better.
Acorns (which we talk more about later) let’s you start investing from just £1. That means that you could start building your long-term portfolio for less than the cost of a pint!
Read more about how to build an investment portfolio with £1.
A good selection of educational resources
Starting out in investing can feel like learning a new language. The best platforms for students are those that offer educational resources, like tutorials, webinars, articles, and guides. The more you understand, the better equipped you’ll be to make smart decisions.
Look for platforms that offer a comprehensive suite of educational resources. You should be able to find the answers to all of your questions within the platform.
User-friendly design
As a student, the last thing that you want is to sign up for a platform that requires a second degree to wrap your head around!
Look for platforms that have an intuitive, simple design that makes investing straightforward. You want a platform that feels accessible, even if you’re completely new to investing.
You can usually tell whether or not a platform will be easy to use from the offset. Is the website easy to navigate? Does that branding use beinner-friendly language? Ask yourself these kinds of questions when researching different options.
24/7 customer support
When you’re just starting out, questions will pop up—probably at the most inconvenient times! Good customer support can help you get quick answers and feel more confident about your decisions.
The great thing about 24/7 customer support is that you can ask questions around the clock – whether that’s after a long day of studying or a busy night out with your mates. It’s important that you’re not waiting hours for a reply.
Low fees
Fees can eat into your investment gains over time, so it’s crucial to find a platform with competitive fees. Look for clear fee structures with low trading fees, no hidden charges, and options for low-cost or even free investments.
The best platforms will be clear about fees from the get-go. For further clarification, consider asking the customer support team about the fees that are involved.
A Good Selection of Funds, ISAs, and Ready-Made Portfolios
If you’re not ready to choose individual stocks, having access to ready-made portfolios, funds, or ISAs can be a great starting point. Some platforms even offer “robo-advisors” that build and manage a portfolio for you based on your risk preferences.
You can learn more about these in our post on how to invest with AI.
Our top pick for portfolios is eToro, which offers a great selection of ‘Smart’ portfolios that are managed by a team of experts. We also like the Nutmeg app for ISAs.
By putting your money into these types of assets, you can diversify without needing to pick out individual stocks (which saves a lot of time!).
1. Hargreaves Lansdown
Let’s kick things off with a platform that has a strong reputation and a history of excellent customer service. As one of the most well-known platforms in the UK, Hargreaves Lansdown is popular among both beginner and experienced investors.
With this platform, you can choose from a vast selection of funds, shares, ETFs, and ISAs. This platform is ideal if you’d like flexibility to diversify your portfolio over time.
Hargreaves Lansdown has a strong focus on education, offering webinars, articles, and tools that make learning about investing a bit easier.
Hargreaves Lansdown has been around for years and is one of the UK’s most trusted platforms. This is certainly a good sign and takes a bit of worry out of the investing process.
While Hargreaves Lansdown has lots to offer, its fees aren’t the lowest. There’s a 0.45% annual fee on funds, and trading fees are £11.95 per trade. So, it’s best suited to people who don’t plan on making too many trades each year.
2. Nutmeg
Nutmeg has made waves for being one of the UK’s leading robo-advisors, ideal for students who want a hands-off approach.
Furthermore, this was the platform that I used to kickstart my own investing journey back when I was at university (and I still have my account now!). Nutmeg offers a good range of ISAs that are managed by a team of experts on your behalf.
The minimum deposit to get started is £100. This might seem a little high however, this is spread across a wide basket of investments to build a diverse portfolio.
Nutmeg offers Stocks and Shares ISAs, Lifetime ISAs, and Junior ISAs, making it a versatile choice. ISAs are an excellent option for students because they offer tax relief.
You can learn more about tax-efficient investments here!
One thing to bear in mind is that Nutmeg charges annual management fees, which range from 0.25% to 0.75%, depending on your chosen portfolio.
Another slight drawback is that the selection of investment products available is limited. Nevertheless, its a great starting point.
3. Acorns
Acorns, known as a micro-investing platform, is geared towards beginners who want to invest small amounts without a fuss. If the £100 deposit required by Nutmeg seems a little high, you will be pleased to know that you can start investing with Acorns from just £1.
The Acorns app links to your bank account and “rounds up” your purchases to the nearest pound, automatically investing the spare change. It’s an effortless way to invest little by little.
The app is designed to be incredibly user-friendly, which makes it ideal for complete beginners. You will like it if you are familiar with mobile banking apps such as Revolut or Monzo.
Acorns doesn’t offer the same range of options as more comprehensive platforms. It’s more for micro-investing than building a full-fledged portfolio.
Nevertheless, its a brilliant way to develop a habit of putting money into an investment pot.
4. eToro
eToro is a popular trading platform that’s become known for its social trading features, making it a unique choice for students interested in learning from others.
With eToro, you can see what other traders are doing and even copy their trades. This feature can be a fun, interactive way to learn.
eToro also offers a good selection of Smart Portfolios which are ready-made baskets of stocks and shares picked out by experts. Each portfolio contains shares that fit into particular industries, such as tech, healthcare or even AI. So, you still get some control over what areas of the market you invest in.
You’ll find everything from stocks and ETFs to cryptocurrencies and commodities, giving you room to experiment.
Read more about how to get started in crypto.
While it’s generally easy to use, some may find eToro’s dashboard a bit cluttered. It’s also worth noting that eToro has a minimum withdrawal limit, which means that you may not be able to withdraw your funds if they fall below £25.
Unlike Acorns and Nutmeg, you can use eToro to invest in individual stocks and shares. This makes it a good choice for students who are looking to gradually improve their skills and implement more ‘advnaced strategies’.
5. IG
IG is one of the UK’s largest trading platforms, with over 50 years in the business. It’s ideal if you’re looking to trade various assets and are looking for solid educational resources.
If diversification is your thing (and why wouldn’t it be?)IG gives you access to over 17,000 markets, including shares, indices, and forex. It also offers some more complex trading products, including CFDs (which are suitable for advanced traders).
If you’re completely new to the world of investing, don’t panic! IG offers extensive educational resources, including webinars, tutorials, and market insights. So, after spending hours studying at Uni, you can study investing to your hearts content on IG.
With a long history and strong reputation, IG is one of the most trusted names in the UK investment world.
IG typically requires a higher minimum deposit, which may be less accessible for students. The minimum deposit starts at £250 and can reach as high as £450 (depending on currency and investment type).
It’s also worth mentioning that some of the tools available on IG might be a bit advanced for students. CFDs, for example, are complex financial instruments that come with a high risk level.
6. Wealthify
Wealthify is another robo-advisor, but it’s aimed at people who want a simple, low-cost investment option without the hassle.
Similarly to Acorns, you can start with as little as £1, which is fantastic for students.
Wealthify charges a simple fee of around 0.6% per year, so you know what to expect with no hidden surprises.
Another pretty appealing factor is that Wealthify offers ethical investing portfolios, allowing you to align your investments with your values. This could be a great way to build wealth whilst doing your bit for the environment (good on you!).
As with other robo-advisors, you don’t get to pick individual investments. Wealthify manages the portfolio for you based on your preferences.
Wealthify is perfect if you want a low-cost, hassle-free investment experience and don’t mind a robo-advisor handling things for you.
Important note: Robo-advisors can be helpful but shouldn’t be relied on completely. Always do your own stock research to ensure that your investing strategy aligsn with your long-term goals.
How to Find a Worthwhile Investment Platform
It goes without saying that the above list is not exhaustive. There are thousands of UK investing platforms out there that all promise to be the best.
So, how can you find ones that are worth your time?
Read user reviews
Start by reading reviews from actual users. It gives you a better picture of what the experience is really like, as people tend to be quite honest about what they liked (or didn’t).
My favourite place to find reviews is Trustpilot. I find them to be pretty reliable.
Chat to the customer support team
Test out the customer support before committing. Send a quick question to see how helpful and responsive the team is. It’s a good way to gauge if they’ll be there when you really need them.
You can use this as an opportunity to ask any questions that you might have about investing. Don’t be shy! They are there to help you.
Do your research!
There’s no one-size-fits-all platform. Spend some time looking into each option, checking the fees, and exploring the features to ensure it’s right for your investment style.
Consider how much you can afford to invest initially, what types of assets you would like to invest in and whether or not you are interested in learning the ropes at more complex investing strategies.
Student Investing Platform Red Flags
It’s important to be aware of warning signs that mean you should stay away from an investing platform. Unfortunately, not every investment platform has your best interests in mind!
Here are some red flags to watch out for.
An overly complicated interface
If a platform looks confusing or cluttered, it may end up causing more stress than it’s worth
Some platforms aim to offer lots of options, but if the interface feels too busy or confusing, it might make investing harder than it needs to be—especially when you’re just starting out.
Slow or unhelpful customer support
Customer support can make or break your experience with a platform. If the support team is slow to respond, unhelpful, or hard to reach, consider this a red flag. You want to know that there’s someone to assist you if you hit a snag or have questions.
Misleading marketing
Be cautious of platforms that make big promises or push “too good to be true” results. Legitimate investing platforms will be upfront about risks, especially to beginners.
If a platform’s marketing seems overly optimistic or hides fees in the fine print, it’s best to proceed with caution.
A lack of regulation
Make sure any platform you consider is regulated by the Financial Conduct Authority (FCA) in the UK. Regulation ensures that the platform adheres to rules designed to protect your investments and personal information.
An unregulated platform could put your money at risk.
Investing as a student is an amazing way to start building your financial future while you’re young. Whether you want a hands-on experience or something more automated, there’s a platform out there for you.
Platforms like Hargreaves Lansdown and IG offer extensive resources and flexibility, while Nutmeg and Wealthify provide an easy, robo-advisor route.
Acorns helps you invest little by little, and eToro brings a unique social aspect to the investing experience.
If you’re unsure, I recommend spending time reading user reviews to understand other people’s experiences with each platform. It is also a good idea to use a demo trading account (if the platform offers one), to test out the investment platform without putting any money at risk.
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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