Can you really invest with just £1?

Several investment platforms offer customers the chance to start investing with just £1, while others require a commitment of hundreds of pounds to use.

For those just starting the investing journey who might not have as much to spend upfront, the minimum amount required to pay in can affect your choice of platform significantly.

Here, Which? compares the minimum investment across 17 different investment platforms to find out where you can get started for less.

Please note: the content in this article is for information purposes only and does not constitute financial or investment advice.

What is the minimum investment on each platform?

We asked 17 investment platforms how much users needed to invest with them. Where a minimum investment for funds is mentioned specifically, the minimum for shares varies depending on what you're investing in. 

The table is organised alphabetically and the links take you through to our reviews.

• Find out more: best investment platforms in the UK 2024 

Investing from just £1 - what’s the catch?

Four platforms - Freetrade, Moneybox, Monzo and Plum - require just £1 to get started with investing.

While it’s true you can invest with just £1, in a lot of instances that won’t cover the cost of investing in a single share. So, all of these platforms also offer fractional shares, which allow you to buy a part of a share of a company.

This is especially useful for investors who want to invest in a particular stock that's out of their price range - for example, a single Microsoft share is currently $407 to buy.

But, investors should be aware that technically you can’t invest in fractional shares in a stocks and shares Isa - HMRC has confirmed that any tax saving you make with an Isa while you invest in fractional shares could be reclaimed.

In the 2023 Autumn Statement, Chancellor Jeremy Hunt announced a consultation would be launched for amending Isa regulations to allow for the holding of fractional shares.

Being a fractional owner of a share also does not give you the same legal rights as owning a whole share - for example, shareholder voting rights and the ability to transfer across Isas.

• Find out more: investing directly in shares 

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Lump sum vs regular investment

With many platforms you can invest regularly for a much lower amount than the high lump sums required.

Some platforms require a monthly investment, but others allow you to pick a frequency more or less often than that - for example, Vanguard's regular investment is taken monthly, while Fidelity International's regular savings plan can be taken in different frequencies from monthly up to annually.

Investing regularly as opposed to all in one go will also affect your returns - for better or worse depending on the market at the time you invest.

If you invest monthly, you’ll be buying shares at different prices, meaning the price generally averages out and you don't suffer as much when prices are higher or gain as much when they're lower. 

On the other hand, if you buy your investments with a lump sum, you’ll see better returns if prices were low when you invested. But, crucially, this is very difficult to get right and you could end up needlessly worse off if you’re inexperienced and get too caught up trying to get the timing just right.

• Find out more: how to balance your investment portfolio

Can you afford to invest?

Being able to afford to invest is about more than having £1 to spare - you should make sure you’ve got enough money to cover any emergencies. Generally, this is advised to be between three and six months’ worth of living expenses.

On top of this, you should make sure you’ve paid off any high interest debt before you invest. You might get good returns on your investments, but if your debt increases faster, you’ll end up worse off than if you’d just paid it off first.

Investing should also be for the long term - ideally at least five years - so if you're saving for a more imminent goal, like buying a house in the next few years, it might be better to put your money in a savings account with a high interest rate.

• Find out more: how to invest: a beginner's guide

Is it worth trying out a new platform?

As of 6 April you can now open and pay into more than one type of Isa in the same tax year - still keeping to the £20,000 annual allowance. You can also partially transfer investments from one Isa provider to another.

This means you’ll be able to test out new platforms while holding onto the tax-free benefits of an Isa.

This year we surveyed 4,136 customers and analysed fees to put together in-depth reviews of 17 investment platforms, with two named as Which? Recommended Providers.

You can use our reviews to find the best stocks and shares Isas for your budget and goals.

• Find out more: best stocks and shares Isas 2024 

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