Rise In Investing Among Brits Prompts Experts To Offer Financial Guidance

As of 2025, more than a quarter (26%) of Brits had invested in stocks and shares at some point in their life, equating to around 14 million UK adults – a 44% increase on figures from 2023.

With interest in investments surging across the globe, forex broker experts at BrokerChooser have collated their expert advice on how to develop investment-management skills and ease anxieties, before fully committing funds. Adam Nasli also offers advice on overcoming investment fears, on behalf of forex broker experts at BrokerChooser.

Low-risk ways to experiment with investing

1. Fractional Shares

Investing in fractional shares means buying a portion of a stock for a smaller amount. This makes it a more accessible method, and enables first-timers to try stock investing without risking large amounts of their income. It also gives investors exposure to the market and allows them to see the pace at which their stocks and shares could develop, without putting large amounts of capital at risk. However, as with any investment, it is important to track your progress and adjust your portfolio as necessary.

Limitations:

It’s important to be aware of the limitations of fractional share investing. There may be limited stock availability – not all platforms offer fractional investment. Some brokers also charge small fees for fractional shares purchases, which can add up over time. On top of this, some brokers do not allow direct transfers of fractional shares at all; they may require liquidation into cash first, which can trigger additional taxes and fees. There aren’t standardised rules for fractional share trading, so always research how a platform manages these before investing.

2. Investment apps

 
Some investment apps are designed to make investing more accessible, so that people with lower confidence, lower incomes, or less financial literacy can enter the market. Being able to manage portfolios on a smartphone – some of which have lower transaction costs – lowers the entry barriers for first-time investors and increases convenience. These apps are also generally more user friendly, making them an ideal way to build experience for a first-time investor. It’s worth researching different options to find a programme that suits your confidence and prior-knowledge.
 

Limitations:

While trading apps have made market access easier than ever, platforms aimed at first-time traders can carry hidden dangers. For example: Commission-free trading does not mean cost-free trading. Spreads may be wider, and order execution can be influenced by payment for order flow (market markers’ commission paid to brokers when routing trades to them), potentially undermining trade quality.

Gamified features like push notifications, badges, or celebratory animations may unintentionally encourage excessive trading, especially among inexperienced users. Moreover, some apps promote high-risk and complex products such as leveraged CFDs or options, which can lead to significant losses, and may even exceed your original investment. First-time investors should be particularly cautious: ensure you fully understand the mechanics, risks, and incentives built into any platform you choose.

3. Robo-Advisors with Low Minimums

Robo-advisors are online platforms that use algorithms to provide automated investment management with minimal or no human intervention. They typically offer low fees and low account minimums, making them accessible to first-time investors, younger individuals, and those who prefer a hands-off approach. Many robo-advisors also include features like automatic portfolio rebalancing and tax-loss harvesting.

Limitations:

While they have grown in popularity recently, they are still relatively new compared to traditional financial advisors. The low-intervention that comes with a robo-advisor may be appealing, but investors should be sure to keep an eye on how their investments are performing. If you decide to utilise a robo-advisor, make sure to keep monitoring both your funds and the market to guarantee your money is being managed effectively.

4. Low-Cost Index Funds or Exchange Traded Funds (ETFs)

Low-cost index funds and ETFs are often passively managed, meaning they don’t require active stock picking by a fund manager. This results in lower annual management costs compared to actively managed funds. This makes them a useful option for first-time investors who may lack confidence, and are seeking wide market exposure with lower fees. They do have some inherent differences:

Index Funds:

• When buying or selling Index funds, the price is based on the value of all securities held within the fund.

• Index funds only value and trade once a day, typically at market close.

• Investors won’t know exactly what price they’re buying or selling for until after the trade’s taken place.

ETFs:

• As ETFs are funds traded on a stock exchange, their price will vary throughout the day.

• Daily fluctuations makes trading more flexible, but it isn’t a good idea to try to time the market – this is extremely risky.

Limitations:

Although index funds and ETFs are considered a low-risk investment, they can still result in investors losing money. If the stock market plummets as a whole, index funds and ETFs inherently will too. Neither of these options are immune to stock market crashes.

5. Paper Trading or Demo Accounts

Demo accounts—also called paper trading accounts—allow beginners to practice trading using virtual money while tracking real-time market conditions. These platforms replicate actual asset behavior and help users get familiar with trading tools like charts and order types, reducing the learning curve when transitioning to live trading.

Limitations:

The most notable drawback of demo accounts is the absence of emotional pressure that comes with risking real money. This can lead to behavior that doesn’t fully reflect how users would act in live trading. Some simulators also fail to account for slippage, illiquidity, or sudden market gaps, which can significantly impact outcomes in volatile or thinly traded markets.

Adam Nasli, on behalf of forex broker experts at BrokerChooser, has provided expert insight into how beginners can overcome investment fears, and warns of inherent risks of investing:

“When entering a new financial market, new traders will naturally feel nervous. By getting familiar with the trading ecosystem, starting with smaller capital,  and using effective risk management techniques like stop-losses, new investors can protect themselves better whilst building their confidence and understanding.

Despite these protections, it is key to note that all investment comes with inherent risks. Financial markets can be unpredictable, especially during times of economic uncertainty. It is often recommended that first-time investors focus on learning and risk management long-term, rather than attempting to gain quick profits.”