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How much should I pay an estate agent?
How much should I pay an estate agent?

Daily Mail​

time6 days ago

  • Business
  • Daily Mail​

How much should I pay an estate agent?

By We've assigned a local estate agent to list our property. It wasn't the cheapest of the three quotes we got, but we thought the agent really knew his stuff. We opted for a package at £5,000 plus VAT, so £6,000. There was a cheaper option at £3,500 plus VAT, but our 'enhanced' option included a video, social media promotion and drone footage. We also thought that, if we paid more, the agency would be more likely to prioritise our sale. But after speaking to two sets of friends who have recently sold, they think we've paid over the odds. Have we? Ed Magnus of This is Money replies: You have done the right thing to have met with different agents before picking one. The fact the selling agent you met made a good impression is a positive, but he may not be that involved in actually selling your home. Typically, a branch manager will come to value your home and once instructed it will be left up to their team of sales negotiators, who get paid commission when they sell a property. If it was me, I'd be more interested to know who those negotiators are, rather than relying entirely on my first impressions of the manager. The fixed fee structure you have been offered certainly differs from the norm. Whether or not it is good value or not depends on what your home sells for. Most estate agents charge a percentage fee of the selling price, rather than a flat fee. This, in theory, incentivises each agent to get the best possible price. However, depending on the value of the home, this could also mean shelling out a vast amount. The percentage typically ranges between 1 and 3 per cent of the selling price, often with VAT on top. Someone selling their £250,000 home with an agent charging a 3 per cent fee plus VAT would end up paying £9,000 in agency fees, for example. For those selling more expensive homes, even a fairly standard 1.5 per cent plus VAT fee (totalling 1.8 per cent) can eat up more than £10,000. Sell a £750,000 property with that fee and the agent will take a £13,500 cut. On that basis, your £6,000 flat fee inclusive of VAT may be deemed low if you are selling a property worth £500,000 or more. But if you're selling a property worth £200,000 for example, that would equate to 3 per cent, which is at the pricey end of the scale. For expert advice, we spoke to Angela Kerr , a director at property advice website HomeOwners Alliance and Jeremy Leaf , north London estate agent and a former Rics residential chairman. Is this estate agent fee good value? Angela Kerr replies: Estate agents usually offer a commission model, which charges you a percentage of the final sale price. At the moment, fees average 1.42 per cent including VAT and in today's climate we advise home sellers to negotiate with the aim of paying 1 per cent. On that calculation, if you're paying £5,000 plus VAT as a flat fee, it only really stacks up if your property is worth £500,000 or more. Below that, it does start to look expensive and your friends have a point. Jeremy Leaf replies: I believe a fixed-price arrangement may not prove to be in the best interests of seller or agent. The amount could be influenced by the value or saleability of the property and its context. For instance, does the £6,000 flat fee represent approximately 1 or 1.5 per cent of likely sale proceeds? Commission based on a percentage of the purchase price may give the agent added incentive to achieve the best possible deal. There's another issue with fixed fees – they don't suit all properties and market conditions. A set amount may be suitable when marketing identical-sized flats in a large block of flats or similar houses in a substantial development, where differentiation can be tricky. However, in this scenario, the seller would want to stand out even more so motivating the agent to send buyers in a particular direction can be a sensible approach. Will the 'enhanced' add ons help to sell? Angela Kerr replies: Most flat-fee estate agents are online agents, with packages typically around £1,000 to £2,000. Some high street agents offer fixed fees too, but it's less common - and these deals are often paid upfront, whether they sell your home or not. So while you might think paying more will get you better service, if they've already banked the fee, I'm afraid there's not much of an incentive to prioritise your sale. As for all the marketing bells and whistles, without knowing the property, it's hard to say if it's value for money. Drone footage is brilliant if you're by the coast or selling a country pad with acres and a pool, but I'm not sure it's worth it if you're selling a semi in Surbiton. I do love a virtual tour though, for giving you the real feel of a property - that's genuinely useful for most buyers. As for social media promotion, it depends. If they're popping your home on an Instagram page with 500 followers, that's unlikely to shift the dial. What other advice would you offer them? Jeremy Leaf replies: I do not believe sellers should over-concentrate on commission, provided the fee is competitive and relates to the estate agent's work. It generally represents only a small proportion of the total price of the property, and the sale of their home can be life-changing, in terms of job, family or other reasons. What we find is of most importance to sellers currently is listing their property in this buyers' market at the right price, as so much stock is available across most price ranges. It's essential that each property stands out, so the right pricing and marketing is even more vital than usual. Get it wrong and the property could languish on the market. If possible, choose the agent with the best recent track record of selling similar properties, agree on a marketing programme and a relatively short period before amendments are considered if you have had no success. A fixed-term agency agreement including a notice period which allows the seller to change agents if necessary, before the property goes 'stale', is a good idea too. Angela Kerr adds: You mention the selling agent really knew his stuff which is good news. It's important you can work with your agent and that they have a good knowledge of the local market. Valuing your house right is an important first step to selling quickly at the best price.

Could YOU do a child's maths homework? Take our test to find out
Could YOU do a child's maths homework? Take our test to find out

Daily Mail​

time6 days ago

  • Business
  • Daily Mail​

Could YOU do a child's maths homework? Take our test to find out

One in three adults, 32 per cent, say they don't have enough basic maths knowledge to help a child with their homework - and their finances could be suffering as a result. As many as 27 per cent of adults have faced financial issues or put off financial tasks in the last year, according to research from Barclays. Of course, Pythagoras' Theorem and quadratic equations might not exactly translate to problems involving your mortgage or credit card rates, but they can teach useful skills such as critical thinking and logic. Despite a number of benefits from school maths classes, they tend to be lacking in direct financial applications to help students in later life, leading to the current situation in which many adults are finding themselves. This is Money has previously reported that financial education is falling short in schools. Recent figures show 84 per cent of schoolchildren want financial education to be included in the new national curriculum. How much primary school maths could you help with? You might not be willing to try your hand at A-Level or GCSE maths papers, but what about when it comes to primary school maths? How many of these questions, taken from past SATs papers, can you answer? 1. Write the missing square number (X) to make this addition correct. 8² + X² = 73 2. Write the missing number to make this calculation correct. 754 × 6 + 754 × 3 = 754 × [ ] 3. Write the missing number to make this division correct. 15,000 ÷ [ ]= 75 Vim Maru, CEO of Barclays UK said, 'We know that people's relationship with money starts to be formed around the age of seven so it's crucial that we are providing children with the number confidence to help them manage and grow their finances in later life.' Figures from audience research firm KidsKnowBest reveal that 46 per cent of children aged 7-14 are worried about money and their future, with 38 per cent saying they are stressed about finances. Eight out of ten adults believe that more resources dedicated to using maths in everyday life would improve financial confidence in the future, with the same proportion recognising that these skills are essential for making informed financial decisions. People are at least aware of their shortcomings, with 39 per cent keen to improve their number skills, according to the research. More younger people too, some 61 per cent, said they would like to improve their numeracy skills. Some 43 per cent said they think their finances would be in a stronger position if they had better skills and confidence when it comes to maths. Among those aged 18 to 27, this figure is even higher, with 76 per cent saying their finances would benefit from having deeper mathematical knowledge. Sam Sims, chief executive of charity National Numeracy said: 'We encourage everyone to have the basics of numeracy in place before they reach for their calculators, so they can understand the calculation, make sense of the numbers, and spot if something is not right. 'Having the confidence to use numbers in daily life is a vital skill - whether for work, helping children with homework, or managing money. And not feeling number confident is nothing to be ashamed of - millions of people in the UK feel the same, but everyone can improve with some practice and the right support.' Barclays has partnered with National Numeracy to train 'numeracy champions' in 60 primary schools, which it says will help to boost the numeracy skills or 13,000 children, parents, carers and staff. Sims said: 'Our new partnership with Barclays will help thousands of people build that confidence, supporting better decisions at home, in school and with their finances.'

Why investing matters: How to build your wealth and beat inflation
Why investing matters: How to build your wealth and beat inflation

Daily Mail​

time6 days ago

  • Business
  • Daily Mail​

Why investing matters: How to build your wealth and beat inflation

In this first chapter of This is Money's new investing guides series, Simon Lambert explains why investing over the long-term pays off. He looks at the opportunities that stock market investment opens up, the potential for higher gains over cash and how savers can shift to investing. And read his five quick tips for investing success, whether you are starting out or an experienced investor. Why invest? Why should I invest? This is the question everyone should ask themselves before they start investing – and it's worth existing investors considering it periodically too. It sounds like a simple question but once you start mulling it over you find that there isn't one simple answer. People invest for many different reasons. They may have a goal in mind that they are aiming for, perhaps to leave an inheritance or an ambition to achieve financial independence; a retirement pot that they hope to build; or could simply be driven by a desire to build their wealth. But while the answers may vary, there is a thread that runs through the variety of reasons that people invest, and it is to give themselves a better future. Why investing pays off Stocks and shares investing offers a great opportunity. It provides ordinary people with a simple way of putting their money to work. It allows people to build up their wealth over time, benefiting from the profits that good companies can make, from the dividends they pay to reward shareholders, and the magic of compounding that magnifies those gains over time - something Albert Einstein called the eighth wonder of the world. Compounding involves earning returns on gains that you have already made, which creates a snowball effect that can be very powerful over the long-term. If you invest £200 a month for 20 years and get an average 5 per cent annual return, then you would end up with £92,500 at the end. Do the same thing for 30 years and you will pay in £24,000 more over the extra decade but end up with £201,000. Meanwhile, do it for 40 years and you will end up with £398,000. How to move from saving to investing Despite the potential for long-term returns, many who could invest are reluctant to do so. The reasons often given are that investing is too complicated, they do not want to risk losing money, or they aren't rich enough yet to invest. These are valid reasons, but they aren't cause to dismiss investing altogether. You will need some spare money to invest, but it is possible to start with a small sum each month. With some investment platforms this could be as little as £1 – and if you choose one that offers fee-free trading and no account fees, then your whole pound will go towards investing. Realistically, though, you need to put in a bit more to make it worthwhile – but this could be just £25 or £50 per month, for example. For those who have already built up savings pots and worry about investing them only for markets to all, my advice is to not think about it as an all-or-nothing affair. You can shift a small amount of your pot, maybe as little as 10 or 20 per cent into investments - ideally in a stocks and shares Isa for the tax benefits - and then see how that goes. If you like it you can invest more, if you don't you can swap back. You could find at some time find some of your investments are down on the price you paid; but this risk is greatly reduced by long-term investing – and is one you must take for the prospect of a better return than on cash. Finally, it is true that investing does require a little work, but with a DIY investing platform, it is surprisingly easy to get started. Why invest instead of sticking with cash saving After years in the doldrums, interest rates have risen sharply and it's now possible to get a decent return from a savings account again. So, why would you invest instead? This is the question even the most committed of investors will have ended up asking themselves over the past couple of years, as the best savings rates topped 5 per cent and the prospect of such a guaranteed return proved tempting. For me, the answer lies in the wealth of evidence that shows investing in the stock market has proven to be the best way to grow your wealth above inflation over the long-term. There are several authoritative long-running studies that show this. My preferred one is the Barclays Equity Gilt Study, which shows the UK stock market returned an average annual return of 4.8 per cent above inflation over the 124 years to 2024. Meanwhile, the US stock market delivered a real average annual return of 6.7 per cent over its longest measured period in the study of 98 years. Don't forget, these are what's known as real returns, so above inflation and reflect genuine growth in wealth. And remember that while cash rates look attractive now, for most of the past 15 years they languished at much lower levels. Last year, the global stock market as measured by the MSCI World index returned 19 per cent, the US S&P 500 returned 23 per cent, and the UK's FTSE All Share returned 9.5 per cent. You shouldn't expect to make money in any given year from investing but do it long-term and the evidence shows it has beaten cash. There's no guarantee this will continue, but the collective ability of companies to put money to productive use and turn a profit lies behind the theory of long-term returns. Investing can be very easy And investing doesn't have to be complicated. There's an easy way to become a long-term investor and that is through a simple, cheap ETF or global tracker fund, which can invest in the stock market. You can then balance your risk with a cheap government bond fund, or by holding some cash. Alternatively, you can get more involved if you like and pick individual shares, funds, investment trusts or ETFs that allow you to back what you think will do well. Whichever option you choose, the great news is that investing these days can be done easily at a very low cost – allowing you to reap the rewards and lay the foundations for a better financial future. Five tips for investors Invest regularly and think long-term: Studies show that the longer you invest for, the lower your chance of losing money over any given time period. Regular monthly investing allows you to steadily build up your portfolio and avoid sudden lurches in the market that can affect lump sums invested. Acknowledge your emotions: Greed and fear are the emotions that trigger rash investing behaviour, but it is only natural to feel them. Accept that these feelings - often triggered when markets slump or soar - are part and parcel of being human but remember you can control whether you react. Don't put all your eggs in one basket: Investors are told to diversify for a reason. A diversified portfolio will still fall but can protect you when market storms arrive. Don't be over-exposed to one stock, fund, sector or market. And remember, holding ten companies that do similar things is not diversification. Don't constantly check: Investing is for the long-term, so checking in on a daily basis is a recipe for trouble. If you do check your portfolio and feel compelled to act, don't do so immediately. Take a step back, discuss what you are thinking of doing with someone, or write it down - evaluate it carefully and consider if it's the right move. Be bold when others are fearful: Treat market falls as an opportunity to buy investments at lower prices. Flip things around and think of it as the stock market being on sale rather than your investments being in a slump.

How much should I pay for an estate agent? My friends say my £6,000 quote is extortionate
How much should I pay for an estate agent? My friends say my £6,000 quote is extortionate

Daily Mail​

time6 days ago

  • Business
  • Daily Mail​

How much should I pay for an estate agent? My friends say my £6,000 quote is extortionate

We've assigned a local estate agent to list our property. It wasn't the cheapest of the three quotes we got, but we thought the agent really knew his stuff. We opted for a package at £5,000 plus VAT, so £6,000. There was a cheaper option at £3,500 plus VAT, but our 'enhanced' option included a video, social media promotion and drone footage. We also thought that, if we paid more, the agency would be more likely to prioritise our sale. But after speaking to two sets of friends who have recently sold, they think we've paid over the odds. Have we? Ed Magnus of This is Money replies: You have done the right thing to have met with different agents before picking one. The fact the selling agent you met made a good impression is a positive, but he may not be that involved in actually selling your home. Typically, a branch manager will come to value your home and once instructed it will be left up to their team of sales negotiators, who get paid commission when they sell a property. If it was me, I'd be more interested to know who those negotiators are, rather than relying entirely on my first impressions of the manager. The fixed fee structure you have been offered certainly differs from the norm. Whether or not it is good value or not depends on what your home sells for. Most estate agents charge a percentage fee of the selling price, rather than a flat fee. This, in theory, incentivises each agent to get the best possible price. However, depending on the value of the home, this could also mean shelling out a vast amount. The percentage typically ranges between 1 and 3 per cent of the selling price, often with VAT on top. Someone selling their £250,000 home with an agent charging a 3 per cent fee plus VAT would end up paying £9,000 in agency fees, for example. For those selling more expensive homes, even a fairly standard 1.5 per cent plus VAT fee (totalling 1.8 per cent) can eat up more than £10,000. Sell a £750,000 property with that fee and the agent will take a £13,500 cut. On that basis, your £6,000 flat fee inclusive of VAT may be deemed low if you are selling a property worth £500,000 or more. But if you're selling a property worth £200,000 for example, that would equate to 3 per cent, which is at the pricey end of the scale. For expert advice, we spoke to Angela Kerr, a director at property advice website HomeOwners Alliance and Jeremy Leaf, north London estate agent and a former Rics residential chairman. Is this estate agent fee good value? Angela Kerr replies: Estate agents usually offer a commission model, which charges you a percentage of the final sale price. At the moment, fees average 1.42 per cent including VAT and in today's climate we advise home sellers to negotiate with the aim of paying 1 per cent. On that calculation, if you're paying £5,000 plus VAT as a flat fee, it only really stacks up if your property is worth £500,000 or more. Below that, it does start to look expensive and your friends have a point. Jeremy Leaf replies: I believe a fixed-price arrangement may not prove to be in the best interests of seller or agent. The amount could be influenced by the value or saleability of the property and its context. For instance, does the £6,000 flat fee represent approximately 1 or 1.5 per cent of likely sale proceeds? Commission based on a percentage of the purchase price may give the agent added incentive to achieve the best possible deal. There's another issue with fixed fees – they don't suit all properties and market conditions. A set amount may be suitable when marketing identical-sized flats in a large block of flats or similar houses in a substantial development, where differentiation can be tricky. However, in this scenario, the seller would want to stand out even more so motivating the agent to send buyers in a particular direction can be a sensible approach. Will the 'enhanced' add ons help to sell? Angela Kerr replies: Most flat-fee estate agents are online agents, with packages typically around £1,000 to £2,000. Some high street agents offer fixed fees too, but it's less common - and these deals are often paid upfront, whether they sell your home or not. So while you might think paying more will get you better service, if they've already banked the fee, I'm afraid there's not much of an incentive to prioritise your sale. As for all the marketing bells and whistles, without knowing the property, it's hard to say if it's value for money. Drone footage is brilliant if you're by the coast or selling a country pad with acres and a pool, but I'm not sure it's worth it if you're selling a semi in Surbiton. I do love a virtual tour though, for giving you the real feel of a property - that's genuinely useful for most buyers. As for social media promotion, it depends. If they're popping your home on an Instagram page with 500 followers, that's unlikely to shift the dial. What other advice would you offer them? Jeremy Leaf replies: I do not believe sellers should over-concentrate on commission, provided the fee is competitive and relates to the estate agent's work. It generally represents only a small proportion of the total price of the property, and the sale of their home can be life-changing, in terms of job, family or other reasons. What we find is of most importance to sellers currently is listing their property in this buyers' market at the right price, as so much stock is available across most price ranges. It's essential that each property stands out, so the right pricing and marketing is even more vital than usual. Get it wrong and the property could languish on the market. If possible, choose the agent with the best recent track record of selling similar properties, agree on a marketing programme and a relatively short period before amendments are considered if you have had no success. A fixed-term agency agreement including a notice period which allows the seller to change agents if necessary, before the property goes 'stale', is a good idea too. Angela Kerr adds: You mention the selling agent really knew his stuff which is good news. It's important you can work with your agent and that they have a good knowledge of the local market. Valuing your house right is an important first step to selling quickly at the best price. How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.

InvestEngine review: How good is it for DIY investors and how does it compare to rivals?
InvestEngine review: How good is it for DIY investors and how does it compare to rivals?

Daily Mail​

time23-07-2025

  • Business
  • Daily Mail​

InvestEngine review: How good is it for DIY investors and how does it compare to rivals?

Products featured in this article are independently selected by This is Money's specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence. In our InvestEngine review, you can find out whether the investment platform is right for you. You'd be forgiven if you haven't heard of InvestEngine. It was founded in 2016 and launched its first portfolio in 2021, meaning it's a relative toddler when compared even with more adolescent investing platform rivals such as eToro and Trading 212. But InvestEngine* has rapidly gained popularity for its low fees and intuitive online platform, as well as its simplified range of investments. InvestEngine only offers Exchange Traded Funds (ETFs), which are investments that track the performance of specific markets or sectors, such as the UK's FTSE 100, or technology stocks. It also offers its own ready-made portfolios built with ETFs, as well as a managed option that's more personalised to you and your financial goals. If you're only looking to invest in ETFs rather than pick individual stocks and shares, InvestEngine is a great low-cost platform with a wide choice of investments available. More than 830 ETFs are available, allowing you to build a diversified set of investments. No account fees when choosing your own investments and low account fees when picking a ready-made or managed option. It's quick and straightforward to open an account. The process of buying investments is easier on other platforms. InvestEngine only accepts pension transfers from Vanguard currently. InvestEngine is a newer platform and as such some investors may prefer to open accounts with more established businesses. This is Money's view: We like InvestEngine's very low fees and its sole focus on ETFs. This makes it ideal for investors that want to build a diversified mix of investments quickly and with minimal fuss – beginners could do worse than open an account with InvestEngine. > Learn more about InvestEngine and open an account* You can open these accounts with InvestEngine: Isa General investment account Sipp Business account – for investing your business's cash > Read our full round-up of the best Sipp providers InvestEngine fees: Overview InvestEngine doesn't charge account fees for do-it-yourself investing. It also doesn't charge dealing fees. This puts it in competition with similar platforms like eToro, Prosper and Trading 212, which don't charge these fees either. You can read more in our Trading 212 review. Here's a breakdown: Do-it-yourself account fee: Free Ready-made LifePlan portfolios account fee: 0.25 per cent (LifePlan portfolios are temporarily unavailable while InvestEngine improves them) Managed portfolios account fee: 0.25 per cent (managed portfolios are also temporarily unavailable) There are underlying fees within the investments you hold, which cover their ongoing management and administration. You can check these on InvestEngine before buying. InvestEngine says the underlying fees for the investments within its ready-made and managed portfolios average 0.12 per cent. This is Money's view of InvestEngine's fees InvestEngine stands out as a great option for low-cost investing, with zero account fees for DIY investing. Only ETFs are available on the platform, which can help you keep ongoing investment costs low. As an example, compare two investments that both have a global outlook. The ongoing charges figure for the popular actively managed Fundsmith Equity fund is 1.04 per cent, while the ongoing charges figure for the Invesco FTSE All-World ETF is 0.15 per cent. Investments that simply track a market or sector can't outperform them by definition. But according to investment research provider MorningStar, only around 14 per cent of active managers have beaten passive strategies over the past decade, which helps explain why ETFs have grown in popularity. It seems a shame that InvestEngine's ready-made and managed portfolios aren't available at the moment, as account fees for these also relatively low in comparison with other providers. Managed providers Moneyfarm and Nutmeg charge 0.7 per cent and 0.75 per cent respectively. InvestEngine says it can keep fees low by generating interest on its clients' uninvested cash, as well as by charging account fees for both ready-made and managed portfolios. What is InvestEngine's investment choice like? How often does InvestEngine invest? InvestEngine only invests once a day. It combines all the orders placed before 2pm and then invests them in one go, which helps it keep costs down. This means those who try to time the market when buying and selling investments should look elsewhere. You can only buy ETFs using InvestEngine. ETFs have soared in popularity as a simple, low-cost way to track the performance of a market or sector and gain access to a diversified basket of investments. InvestEngine has more than 830 to choose from, with ETFs available that track asset classes including shares, bonds and commodities. This allows DIY investors to build a portfolio suited to their goals and risk tolerance. InvestEngine also offers ready-made LifePlan portfolios, each targeting different risk levels. These are like Vanguard's LifeStrategy funds, but they're temporarily unavailable while the platform improves them. ETFs are particularly well regarded by investors favouring a set-it-and-forget-it strategy, which involves investing with a lump sum or setting up a regular investing plan then leaving it, only occasionally checking performance. No doubt ETFs have also been buoyed by the strong performance of the US's S&P 500 over the last few years, with investors who want a piece of the action flocking to ETFs that track the index. What is InvestEngine's customer service like? You can only contact InvestEngine's customer service team by email, through an online contact form, or through social media. The platform says it can accommodate talking to customers over the phone, but you must request this by email first. The inability to access real-time customer support is a significant downside of newer, low-cost investment platforms. Investors effectively trade customer service options for reduced fees, so you should consider whether you'd prefer phone-based support. The good news is you can get in touch with InvestEngine's customer service team seven days of the week. This beats many other investing platforms whose teams are generally only available five or six days a week. Our view of InvestEngine's customer service Getting through to InvestEngine's customer service team is a protracted process. I tested this on the app, and unlike rivals such as Trading 212 and Interactive Investor, there isn't a chat function available. Instead, when you click 'help' you're taken to an FAQ page, which is extensive but unhelpful if you know you need to speak to someone. What's more, you'll only see 'contact us' after clicking the menu at the top of the screen. You then get a form that lets you submit your question or problem to the customer service team. In our view, it's best to get in touch with InvestEngine over email, at support@ – InvestEngine aims to reply within two business hours, which is positive. The nature of ETF investing means that customers may not need to speak to customer service as much as they would when buying shares or more complex investments. But if you do think you'll need extensive customer support, it may be best to look elsewhere. There's an active InvestEngine community forum where investors can ask for help, with InvestEngine staff and investors alike answering questions and helping with problems. What is InvestEngine like to use? InvestEngine is uncluttered. There aren't many bells and whistles, which we believe is positive in terms of InvestEngine's approach. Too many features can add complexity when picking investments and those investing solely using ETFs are likely seeking to simplify investing anyway. InvestEngine's platform looks the same on both desktop and mobile, so investors should get the same experience no matter what device they use. How did InvestEngine perform when opening an account and making an investment? After you sign up, InvestEngine gives you a useful tour and overview of its main dashboard and the accounts you can open. I opened a stocks and shares Isa using the desktop version of InvestEngine. This is quick, provided you have details such as your national insurance number to hand. To start investing, you must add a minimum of £100 to your account. When compared with other platforms this is relatively high – Trading 212 has a minimum £1 deposit, for example. It was quick to add a lump sum to the account through an instant bank transfer. The payment showed as pending for a short time before I was able to use the cash. Using it to buy an investment wasn't straightforward. First you must choose an ETF, which is simple enough – you just click 'investments' in the menu bar to begin your search. But you can't then place an order for the ETF directly. Instead, you must add it to its own portfolio first, move the cash into this portfolio, and then use the cash to buy the investment. This adds more steps than other platforms and can be time consuming, especially if you want to invest in a single ETF. However, a focus on building a basket of investments – your portfolio – can encourage positive behaviour, such as nudging investors towards thinking about diversification and asset allocation. InvestEngine allows you to set up a regular savings plan and automatic investments. What other features does InvestEngine offer? InvestEngine doesn't offer as many features as other platforms we've reviewed. If you like drilling down into detailed charts and reports or enjoy social trading features that allow you to interact with other investors, you should consider other platforms. However, we don't believe this is negative – it just depends on the type of investor you are. A no-frills approach fits InvestEngine's focus on simplicity. One feature that stands out is InvestEngine's rebalancing tool. This automatically brings your investments back to their target weights, buying underweight investments and selling overweight investments. You can also use the uninvested cash in your account to rebalance. But unlike a similar feature from Trading 212, you can't set up self-balancing automatic investments. This means your regular contributions buy investments at their target weights, which can lead to an unbalanced portfolio as investments rise and fall in value. It also has a useful reporting tool, easily accessible from the menu. You can create different types of reports, including a capital gains tax report, an account overview, and a valuation statement, covering many of the reasons you'll need to provide documents. What does rebalancing mean? You should think about your ideal mix of investments based on your goals and risk tolerance. Shares are generally considered riskier than bonds. So if you're a more cautious investor – and this is a simplified example – you might choose to build a portfolio consisting of 50 per cent shares and 50 per cent bonds. But the performance of your investments can skew this mix over time. If there's a runaway success within your shares allocation, your mix could end up more like 55/45 – and your investments are then riskier for you. Rebalancing would bring your mix of investments back to a 50/50 target. Is InvestEngine safe? In January 2025, InvestEngine confirmed that it manages over £1billion of assets for customers, so it's trusted with a significant amount of money. If InvestEngine went bust, the value of your investments would be protected up to £85,000 through the Financial Services Compensation Scheme (FSCS). InvestEngine is authorised and regulated by the Financial Conduct Authority (FCA). When setting up the InvestEngine app on your mobile device, it asks you to add a pin number, which you'll need to enter each time you open the app. Make sure this is different to your phone's pin number and you don't save the pin anywhere on your device, for example in your notes app. You can also set up a fingerprint log in. InvestEngine allows you to set up two-factor authentication, which is highly recommended as an extra layer of security. It requires you to authenticate a log in separately and can alert you when someone else is trying to access your account. What is InvestEngine's research and educational content like? InvestEngine partners with financial educators, planners, coaches and influencers to create educational content for YouTube. I found these videos more engaging and informative than similar offerings from other platforms. InvestEngine runs a blog that covers various topics, from investing in gold to pension fees and taxes. It also hosts regular webinars with investment management firms including Invesco, J.P. Morgan and WisdomTree. InvestEngine doesn't offer its own investment research. This is to be expected of newer, low-cost investment platforms – if you'd like detailed research to help you pick your own investments, it's worth exploring the likes of Hargreaves Lansdown and Interactive Investor. Guides and videos: InvestEngine features relevant content at the top of your main account page InvestEngine: This is Money's overall review InvestEngine* is backing the trend for low-cost investments that track markets rather than try to beat them. While ETFs are available on most other investment platforms, the fact that ETFs are the only type of product available on InvestEngine keeps investing simple. Other platforms such as eToro and Trading 212 were established as stock picking and trading platforms – these platforms may seem like they're actively encouraging you to trade regularly. InvestEngine suits investors who want to buy investments and simply forget about them. The fact InvestEngine only invests once a day discourages attempts to time the market. And a lack of detailed charts and graphs means that investors aren't enticed to log in multiple times a day and check investment performance – which can lead to poor decisions. But it's still relatively early days for InvestEngine. In our opinion one of the biggest question marks around the platform is it's making a loss, which has led investors to ask whether it'll always be able to offer zero or low account fees. In the meantime, those low fees and simplified investment choice make it a great platform for beginners who have already researched what ETFs to pick, taking their risk tolerance and ideal mix of investments into account. Why you can trust us This is Money has been covering investing and personal finance since 1999. Read more about how our editorial independence helps make our readers' lives richer. About our writer: As This is Money's Money and Consumer Guides Writer, Sam is dedicated to helping readers make the best decisions for their money. He's been covering financial products for more than 12 years and has written for NerdWallet, the Financial Ombudsman Service, Simply Business and Evelyn Partners. Sam regularly keeps track of the best stocks and shares Isas and self-invested personal pensions, explaining which investment platforms work out best for various investors. How we tested InvestEngine I've opened an InvestEngine stocks and shares Isa on a desktop computer and tested its features over several hours. I've also downloaded its app, testing how intuitive the platform is to use on mobile. I've bought investments and looked at InvestEngine's range of educational content. I've compared its fees and options for customer service with rivals, before giving my view on who the platform most suits. Compare the best DIY investing platforms Investing online is simple, cheap and can be done from your computer, tablet or phone at a time and place that suits you. When it comes to choosing a DIY investing platform, stocks & shares Isa, self invested personal pension, or a general investing account, the range of options might seem overwhelming. > This is Money's full guide to the best investing platforms Every provider has a slightly different offering, charging more or less for trading or holding shares and giving access to a different range of stocks, funds and investment trusts. When weighing up the right one for you, it's important to to look at the service that it offers, along with administration charges and dealing fees, plus any other extra costs. We highlight the main players in the table below but would advise doing your own research and considering the points in our full guide to the best investment accounts. Platforms featured below are independently selected by This is Money's specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence. Admin charge Charges notes Fund dealing Standard share, trust, ETF dealing Regular investing Dividend reinvestment AJ Bell* 0.25% Max £3.50 per month for shares, trusts, ETFs. £1.50 £5 £1.50 £1.50 per deal More details Bestinvest 0.40% (0.2% for ready made portfolios) Account fee cut to 0.2% for ready made investments Free £4.95 Free for funds Free for income funds More details Charles Stanley Direct * 0.30% Min platform fee of £60, max of £600. £100 back in free trades per year £4 £10 Free for funds n/a More details Etoro* Free Stocks, investment trusts and ETFs. Limited Isa, no Sipp. Not available Free n/a n/a More details Fidelity * 0.35% on funds £7.50 per month up to £25,000 or 0.35% with regular savings plan. Free £7.50 Free funds £1.50 shares, trusts ETFs £1.50 More details Freetrade * Basic account free, Standard with Isa £5.99, Plus £11.99 Stocks, investment trusts and ETFs. No funds Free n/a n/a More details Hargreaves Lansdown * 0.45% Capped at £45 for shares, trusts, ETFs Free £11.95 Free Free More details Interactive Investor* £4.99 per month under £50k, £11.99 above, £10 extra for Sipp Free trade worth £3.99 per month (does not apply to £4.99 plan) £3.99 £3.99 Free £0.99 More details InvestEngine * Free Only ETFs. Managed service is 0.25% Not available Free Free Free More details iWeb Free £5 £5 n/a 2%, max £5 More details Trading 212* Free Stocks, investment trusts and ETFs. Not available Free n/a Free More details Vanguard Only Vanguard's own products 0.15% Only Vanguard funds Free Free only Vanguard ETFs Free n/a More details

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