People under 40 who are starting out will typically not be super experienced in the world of investing, might feel a mild sense of alarm and probably be wondering, “do I have enough money to get involved in this world?”. Do not panic. You are in the right place. If you have at least £1 to invest, have a computer or a phone and 15 minutes spare, we can help.
As a general note, if you have expensive credit card debt or if you don’t have about 3 months’ salary built up in an easy access cash account as an emergency fund, it's worth taking the time to address these first before you dip your toes into the stock market.
Top ISA providers for those Under 40
Boring Money research shows that If we look at every investor under 40, the most commonly held sum of money in an ISA is £3,000.[1] If we look at the whole market, and think about who has reasonable fees and charges for this sum, and think about who offers the features and functionality you might like, then we identify:
Bestinvest
They have investment coaches you can speak to on the phone, so it’s a good option if you want to pick and choose but get a helping human hand along the way.
Holly MackayFounder & CEO, Boring Money
In a nutshell
Free financial coaching
Many investment types available, including ready-made options
Charges are higher on UK investments
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Who is Bestinvest good for?
Bestinvest is helpful for less confident investors who want a human being available on the phone to take questions and guide them. The content and research will also support those who want to learn and develop their investment confidence.
Trading 212
Good if you want to start, have a good app, build up an ‘investment pie’ and start to assemble your own collection of shares.
Holly MackayFounder & CEO, Boring Money
In a nutshell
Broad range of choice
Free ISA
0.15% foreign exchange fees
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Who is Trading 212 good for?
Trading 212 is a good choice for people with smaller budgets who prefer managing their investments on their phones. With no commission fees, a minimal £1 investment requirement, and a user-friendly mobile app, it makes investing accessible.
HSBC/Monzo/NatWest Invest
Good options for investing for those who already bank here and want to start investing but need some help to get started.
Holly MackayFounder & CEO, Boring Money
In a nutshell
Competitive platform fees
For HSBC customers only
Ready-made options and third-party funds available
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Who is HSBC good for?
It’s a good choice for less confident investors who are looking for the security of a big brand bank, and some handholding along the way. This service is a decent start. They offer good starter investment options for those who already bank with HSBC and want a simple life when it comes to investing.
In a nutshell
Really easy to use and mobile-friendly
Quick set-up process
Handy quick-guides on investing
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Who is Monzo good for?
A decent option if you're a beginner investor, someone who doesn't have a lot of time on their hands, or appreciates a little ESG consideration in their investments.
In a nutshell
Only for NatWest customers
Limited investment choice
Low platform fees
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Who is NatWest Invest good for?
NatWest Invest is good for people who already bank with NatWest (you have to be an existing customer to open an account). It’s also suited to beginner investors who would like a little bit of advice, people who don’t want too much choice, or those who are worried about hefty fees.
If we cut the Boring Money data differently we also see that that the average (versus the most common) amount held by investors under 40 is £26,000.[2] This higher number is heavily influenced by individuals who sit in the upper savings band as a result of inheriting money, receiving a big bonus or simply having saved more, if this sounds more like you then you might also like to consider:
AJ Bell Dodl
From AJ Bell, an app which offers some choice of funds and shares without going too far and overwhelming.
Holly MackayFounder & CEO, Boring Money
In a nutshell
Low cost
Mobile-only
Free trading
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Who is AJ Bell Dodl good for?
AJ Bell Dodl is a good choice for beginners with smaller amounts to invest who want a good app, low charges, and not too much choice so there’s less chance of getting overwhelmed.
Moneyfarm
A nice option which lets you start with something someone else makes for you, and over time can support you to start to pick and choose yourself.
Holly MackayFounder & CEO, Boring Money
In a nutshell
Really easy to use
Ready-made options
This is regulated advice
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Who is Moneyfarm good for?
Moneyfarm is a good option for those who want some help with investing and who value the combo of a good digital customer experience with the ability to talk to real human beings on the phone. It’s also a decent fit for those who want some choice whilst still outsourcing most of the decisions to the experts.
Vanguard
Their Managed ISA will do it all for you, with the peace of mind you’re being looked after by one of the biggest investment brands in the world.
Holly MackayFounder & CEO, Boring Money
In a nutshell
Low fees on medium and large portfolios
Huge global player
Limited choice
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Who is Vanguard good for?
Vanguard is a comforting, giant brand generally held in high regard. It’s low-cost with a platform charge of just 0.15% and has a suite of industry-respected ready-made options for beginners – the famed LifeStrategy range. However, it does have its flaws; Vanguard is a closed platform, meaning you can only use it to buy Vanguard’s own funds, so there’s limited choice.
What's an ISA anyway?
Not quite sure how ISAs work? Want to know how you can use them to shield your money from the taxman? You can read all about ISAs, the different types on the market, and how to invest or save with them in our ISA Hub. Check it out below!
How do ISAs work and are they right for you?
Find the right ISA for you
Are you ready to pick an ISA but not sure where to start? We've got your back. Head over to our ISA comparison tables to see what's out there and read our reviews for more details on charges, products, ease of use, what our readers think and more!
