If you thought that the pandemic would halt the flurry of new UK stockbrokers launching investment apps during the early 2020s, you’d be wrong. Here’s a sneak peek at the three new investment apps that we’ve been using in 2021.
Please note that the links in this article are referral links that may provide bonuses or sign-up offers to both you and Financial-Expert.co.uk if you sign-up. Specific details are below:
#1 – eToro investment app
We predict that 2021 will be a knock-out year for new sign-ups to the eToro investment platform and investing app.
eToro is one of the few UK investment apps which offers commission-free trading of stocks & shares. That means that zero trading fees are paid each time you buy or sell an individual share (and in some cases, funds). This makes the eToro investment app a desirable pick for anyone with a small or modest portfolio. Small investors see the advantages of fee-free trading because the ‘fixed fee’ approach of traditional UK stockbrokers disproportionately affects those making small trades.
How to sign-up to eToro:
You can register for eToro using our referral link.
Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
#2 – Freetrade investment app
Freetrade emerged onto the UK investment scene in 2016, but it has truly made big waves in 2020 and 2021 with a compelling offer.
If you sign-up to Freetrade through our special referral link, you’ll be awarded with a free share from FreeTrade just for making a small deposit. This gives a fantastic opportunity to try out the investment app and decide for yourself whether Freetrade would be the perfect app to build your share portfolio.
Why does Freetrade use that moniker as its brand name? Because just like eToro, Freetrade offers zero-commission trading on any purchases or sales of equities using the investment app.
Freetrade is currently app-only, but recent press releases tease a desktop browser interface that will be launched later in 2021. This is just another reason why Freetrade might be the perfect app to test drive this year.
How to sign-up to Freetrade and earn your free share:
- Sign up via this referral link
- On the Free Trade app, register for a free investment account (not the ISA, which has a monthly fee).
- Deposit £1
- After 7-10 days a free share worth £3 – £200 will be deposited into your account
#3 Orca investment app
Orca is a UK-registered company (Orca App Limited) that sells itself as an ‘all-in-one’ vehicle that you can use to build your investment portfolio.
While Freetrade focuses on a core shares offering, Orca encourages its users to spread their money across a variety of assets, including funds, and also plans to promote other alternative investments to users (read more: the best alternative investment books). The term ‘alternative investments’ typically includes venture capital trusts and hedge funds (see books), but these are not yet confirmed by Orca as launching on the platform.
Orca charges a simple and low £1 fee for each trade. That’s 1/5th of the commission charged by large industry players such as Hargreaves Lansdown and Interactive Investor. Orca is set to become a challenger to the establishment in 2021.
We love the wide scope of the investments available in the current Orca app, and are excited about the exotic options that may become available in the future.
How to sign-up to Orca and earn a free share:
- Sign up via this referral link
- Download the Orca app and open a GIA (General Investment Account) account
- Use the referral code rBNKND if asked
- Deposit at least £50
- Buy 3 assets, for example; three different stocks for £4 each
- A free share worth £2 – £200 will be deposited to your account within 3 working days.
#4 Dodl investing app from AJ Bell
The Dodl app is an investment app that will be launched by AJ Bell in 2022. Details are scant at the time of writing, as AJ Bell has only provided tidbits via a single press release.
In 2021 the year of the investment app?
2021 has seen several events which have galvanised the industry in its pivot towards offering stockbroking solutions via an app rather than a browser interface.
One of the key trends has been the surging influence of the Reddit #wallstreetbets group on the ubiquitous message board. Momentum trading, the exchange of trading tips, combined with an ounce of mania has resulted in record sign-ups to investment services and extreme levels of trading volumes in some company shares in 2021.
Gamestop Inc was the most famous example of this attention from amateur traders, who grouped together and bought shares and call options in the beleagured US video game retailer with the aim of forcing hedge funds to close their short positions to minimise losses.
The strategy worked and with the help of social media influencing (which may have violated securities law), the price of Gamestop surged by over 1000% during the month of January, resulting in riches and laughs for those who participated in the trade on the message board. Of course, what goes up may often come back down, as did the price of Gamestop, which has never since repeated the all time high close of $347 which it saw on the 21 Jan 2021.
All of this excitement, panic and intrigue among young investors has driven the success of investment apps, which in turn have stepped up their marketing efforts on media platforms such as YouTube in an attempt to gain market share. Young investors are naturally drawn to investment apps which make trading simple and fast. However, the slick and efficient interfaces of investment apps have been criticised for adding a veneer which could be seen to obscure the high-risk nature of trading.