How to Start Investing
This section guides beginners through the essential steps to begin investing — from setting goals to choosing the right account. Whether you're building wealth for yourself or securing your child's future through a Junior ISA, this guide helps you take confident first steps.
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Step 1: Define Your Goal
Before investing, clarify what you're working toward. Your goal will shape your strategy, risk level, and time horizon.
Common goals include:
- Building long-term wealth
- Saving for retirement
- Generating passive income
- Saving for a home or education
- Investing for your child's future (e.g. Junior ISA)
CTA: Use our Goal Planner to define your investment objective.
Step 2: Pick the Right Investment Account
In the UK, you can invest through different account types. Each offers unique tax advantages and access rules. Choosing the right one depends on your goal — whether you're investing for yourself, your retirement, or your child.
| Account Type | Description | Tax Benefits | Best For |
|---|---|---|---|
| Junior ISA | Tax-free account for children under 18 | No tax on gains or interest | Building a child's future |
| Cash ISA | Savings account with tax-free interest | No income tax on interest | Short-term savers |
| Stocks & Shares ISA | Invest in stocks, funds, ETFs tax-free | No capital gains or income tax | Long-term investing |
| Pension (SIPP) | Retirement-focused account with tax relief | Tax relief on contributions | Retirement planning |
| General Account | Standard investment account | Taxable gains and income | Flexible access |
CTA: Compare account types to find what suits your goal.
Step 3: Select a Platform
Choose a provider that offers the account type you want, with low fees and a user-friendly interface.
Key factors to consider:
- Platform fees (monthly, trading, withdrawal)
- Available account types
- Investment options (stocks, ETFs, funds)
- App and dashboard usability
- Customer support and reputation
CTA: Explore our Platform Comparison Tool.
Step 4: Decide What to Invest In
Start simple. For beginners, diversified options are often the safest and easiest to understand.
| Investment Option | Description | Risk Level | Suitable For |
|---|---|---|---|
| ETFs | Bundles of assets, automatically diversified | Medium | Beginners, long-term |
| Index Funds | Track market indices like FTSE 100 | Medium | Passive investors |
| Target-Date Funds | Adjust risk over time automatically | Medium | Retirement savers |
Avoid picking individual stocks early on unless you fully understand the risks.
CTA: Use our Investment Selector to explore beginner-friendly options.
Step 5: Make Your First Investment
Once your account is open and funded, choose your investment and confirm the purchase. You can start with as little as £1 — even £50 or £100 is enough to begin.
Tips:
- Don't wait for "perfect timing"
- Invest regularly (monthly contributions)
- Reinvest dividends if possible
- Stay focused on long-term growth
CTA: Use our First Investment Checklist.
Step 6: Track and Learn
After investing, monitor your portfolio and continue learning. Don't obsess over daily changes — focus on long-term trends.
Recommended habits:
- Review your portfolio monthly
- Read educational content
- Avoid emotional reactions to market dips
- Stay consistent with contributions
CTA: Subscribe to our Monthly Investor Insights.
Important Investment Warning
This content is for educational purposes only and does not constitute financial advice. We are not FCA-regulated financial advisers. Investments can go down as well as up, and you may lose some or all of your capital. Past performance does not guarantee future results.