- Investing every month has many advantages but fees can add up quickly
- A few platforms offer free regular investing
- The best platform for you depends on whether you hold funds or listed securities, and also your portfolio's size
Investing a regular sum every month is a great way of growing a chunky pot over time without too much hassle. When you have decided what to invest in and set up a direct debit, you don't have to remember to make contributions - only to review your portfolio every few months. Automating your investments also means that you are not tempted to try to time the market, which is often fruitless and even damaging. And regular contributions help to smooth the effects of market volatility thanks to pound-cost averaging.
Holly Mackay, founder and chief executive of Boring Money, notes that the reduction of trading fees for regular investments has been a major trend among platforms over the past few years. With many providers, regular investing is cheaper than lump sum investing, and some offer it for free. The table below compares the main ones. “Given the volatility of markets in recent years, and the competitive fees on offer, this is a really sensible way for most of us to smooth our entry into markets and build our positions little and often,” says Mackay.