Innovation in financial technology means that retail investors can now download investment apps to their smartphones which gives them access to online investing platforms that were once available only to established financial institutions.
Where retail investors previously had to make a telephone call to a stockbroker to buy a company’s shares, they now have access to real-time data and prices that enable them buy and sell shares on their own account and trade in and out of foreign currencies across several time zones.
The emergence of investment apps or online investing platforms means that all this can be done at the click of a mouse or the push of a button on a mobile phone.
Investment apps: Online investing platforms
Before downloading an investment app, retail investors should always confirm that the financial services company behind the app is authorised by the Financial Conduct Authority (FCA) by searching the FCA Register.
When checking the Register, you should confirm that the provider of the investment app is authorised to provide regulated products and services. This means that they can give investment advice, arrange deals in investments, accept deposits and provide credit to consumers.
Being FCA-regulated usually means that your investments are covered under the Financial Services Compensation Scheme (FSCS) up to a maximum of £85,000 (subject to meeting specified eligibility criteria) but unregulated products such as Cryptocurrencies are excluded.
We have identified below a selection of investment apps with links to independent review sites so you can see what users are saying.
Robinhood
Robinhood is a US-based financial services company that established a UK operation in early 2020. It is authorised by the Financial Conduct Authority (FCA) to provide regulated products and services. However, In July 2020 Robinhood announced that they were postponing their UK launch indefinitely.
Robinhood is an app which allows users to buy and sell shares, Exchange-Traded Funds (ETFs), foreign currencies and Cryptocurrencies. Its key feature is that no commission fees are charged on these trading activities and you can invest from as little as £1.
The Robinhood app is available to download through the Apple store and Google Play and the latest Trust Pilot reviews for the app can be seen here.
An independent review of the app has also been carried out by NerdWallet – a US-based personal finance company – and they have awarded it a five-star rating. You can read the review here.
eToro
eToro was established in 2007 and describes itself as a leader in the global Fintech revolution. It also launched the world’s first social trading platform in 2010. It is authorised by the FCA to provide regulated products and services.
The eToro app enables users to invest in an ever-expanding selection of shares and commodities as well as trading in foreign currencies and cryptocurrencies.
There is no commission on trading shares or ETFs but a $5 fee is charged when making withdrawals from your account balance.
As a social trading platform, one of the most interesting aspects of eToro is that it allows inexperienced users the opportunity to follow, or “copy” the trading strategy of other investors who openly share their performance stats on the platform.
The eToro app is available to download through the Apple store and Google Play and the latest Trust Pilot reviews can be seen here.
You can also read NerdWallet’s independent review here.
Wombat
Wombat Invest Limited was established in 2017 and is authorised by the FCA to act as an Appointed Representative.
This means that it can act on behalf of other another firm (P1 Investment Management) which is authorised to provide regulated products and services.
The Wombat app allows users to invest in up to 15 theme-based Exchange-Traded Funds (ETFs). The option to invest in the shares of individual companies is not available.
An ETF is an investment product that allows retail investors to buy into a basket of shares or commodities. For example, users can invest in a portfolio of tech shares, comprising several different individual tech-related companies such as Google, Apple and Facebook.
The range of ETFs have been given names such as the Techie, the Social Media guru, Pure Gold, and the British Bulldog (the latter includes Burberry and Rolls Royce, for example). For more information of the different themes, please click here. Minimum investment is £10.
Wombat’s charges are based on the amount of money invested: the first £1,000 is free of any fees; balances above £1,000 incur a £1 monthly fee and an annual management fee of 0.45% (charged monthly). The ETF fees are deducted from the underlying fund.
The Wombat app is available to download through the Apple store and Google Play and the latest Trust Pilot reviews can be seen here.
Coinbase
Coinbase was established in San Francisco in 2012 and operates in the UK under the trading name CB Payments Limited.
The company is registered with the FCA as an Authorised Electronic Money Institution. The FCA has stated that it cannot be determined whether the FSCS cover would apply to this firm.
The Coinbase app provides a digital currency platform which allows users to buy and sell a range of alternative currencies (Altcoins) such as Bitcoin, Ethereum and Ripple.
The app includes a wallet which allows users to take full control of their cryptocurrency tokens and store all their digital assets on one place.
The Coinbase app is available to download through the Apple store and Google Play and the latest Trust Pilot reviews can be seen here.
Other financial apps
There are so many financial apps to help with pension tracking , personal finance and money management which are available to download for free or for a small one-off or monthly fee. To learn more about these apps, please follow the links.
