Not long ago, investing was often seen as something for the wealthy or those with stockbrokers on speed dial. High fees, paperwork, and limited access to markets kept most people out. Fast forward to today, and financial technology (fintech) has flipped the script. With just a smartphone and a few spare pounds, you can now build portfolios, access global markets, and even get automated advice

NMTBP explains how fintech has reshaped investing in the UK – and the platforms leading the charge

Investing is open to everyone

The days of needing thousands to start investing are over.

• Fractional shares: Platforms like Freetrade and Trading 212 allow users to buy slices of big companies such as Apple or Amazon with as little as £2
• Round-up investing: Moneybox links to your debit card, rounds up everyday purchases (a £2.70 coffee becomes £3), and invests the spare 30p into a chosen portfolio
• Commission-free trading: Apps like eToro and Freetrade have made investing affordable by scrapping dealing fees that traditional brokers still charge

This has opened the door to first-time investors across the UK – particularly younger savers

Robo-Advisors make portfolio management simple

Professional financial advice used to cost a fortune. Now, robo-advisors are doing the heavy lifting for far less

• Nutmeg: The UK’s largest digital wealth manager, offering ready-made portfolios aligned with your risk profile
• Wealthify: Backed by Aviva, this robo-advisor lets users start with just £1, offering themed portfolios such as ethical investing
• Moneyfarm: Provides personalised portfolios and even access to human advisers once you hit certain thresholds

These services automatically rebalance portfolios and reinvest dividends, helping beginners stay invested without constant monitoring.

Lower costs and more transparency

Fintech has compelled traditional UK investment firms to reassess their pricing

• Freetrade charges no commission on standard trades, while legacy brokers like Hargreaves Lansdown still charge up to £11.95 per deal
• Nutmeg has transparent percentage-based fees instead of hidden charges
• Open Banking allows platforms like Plum to connect all your accounts in one place, giving a clear picture of your money and investments

This shift has saved UK investors millions in fees

Education and community are built into apps

Fintech isn’t just about investing — it’s about learning

• Cleo (an AI-powered chatbot app) helps users budget and encourages small-scale investing
• Freetrade’s community forum lets you discuss stocks and strategies openly
• eToro’s ‘CopyTrader’ feature allows beginners to mirror the trades of experienced investors

This social and educational aspect has made investing feel less intimidating and more collaborative

More choice than ever before

UK fintech platforms have expanded the range of investments available to people

• Shares and ETFs: Available on platforms like Freetrade and Trading 212
• Sustainable investing: Wealthify and Nutmeg offer ethical portfolios designed around ESG (Environmental, Social, Governance) principles
• Cryptocurrency: Apps like Revolut and eToro let you buy and sell Bitcoin and other digital assets
• Peer-to-Peer lending: Platforms like Funding Circle allow you to back UK small businesses directly

Choice empowers you, but it also means taking on more responsibility when selecting what’s right for you

Risks and challenges for investors

With opportunity comes risk, and fintech investing is no exception

• Overtrading: The ‘game-like’ feel of apps can encourage risky short-term bets
• Regulation: The Financial Conduct Authority (FCA) keeps a close eye on fintech platforms, but the rapid pace of change means new risks (like crypto scams) are always emerging
• Data security: With so much financial data online, you must must stay alert to cybersecurity threats

Fintech has democratised investing. What was once complex, costly, and exclusive is now affordable, transparent, and accessible. But remember that investing always carries risk. While fintech has made it easier to get started, always remember the golden rules: think long-term, diversify, and ALWAYS  avoid putting in more than you can afford to lose