Invest £100k – Best Ways To Invest £100,000 In The UK

If you’ve got £100k to invest – you have access to a huge number of financial instruments across various risk levels. Irrespective of whether you decide to invest in stocks, index funds, bonds, or any asset for that matter – you can easily complete the process from the comfort of your home.

In this guide, not only do we discuss the best ways to invest £100k – but which FCA-regulated brokers you should consider for this purpose.

#1 Broker to Invest £100k – eToro

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How To Invest £100k in the UK – Choose a Broker

The first step to go through when looking at how to invest £100k in the UK is to choose a suitable broker. Below you will find a selection of pre-vetted brokers that allow you to invest in a low-cost and secure way.  

  • eToro – Overall Best Place to Invest £100k in the UK
  • Capital.com – Low-Cost Broker With 4,000+ Commission-Free Markets
  • AvaTrade – Trade the Financial Markets at 0% Commission

Full reviews of the above brokers can be found further down on this page.

Best Ways to Invest £100k in the UK – Overview

In terms of choosing which assets to add to your portfolio, we found that the best ways to invest £100k are as follows:  

  1. Growth Industries – Overall Best Way to Invest £100k in the UK
  2. Blue-Chip Stocks – Invest £100k into a Basket of Blue-Chip Stocks
  3. Index Funds – Diversify Your £100k Investment via Stock Index Funds
  4. Bonds – Invest £100k into Corporate and Government Bonds
  5. REIT – Invest £100k into a Real Estate Investment Trust

We cover the pros and cons of the above asset classes and how to invest in them further down.

How to Invest £100k in the UK – A Quick Guide For 2021

The required process to invest £100k with an FCA-regulated broker like eToro is as follows:

  • Step 1: Open an Account with eToroTo invest £100k online, you first need to open a brokerage account. You can do this at eToro in under five minutes by providing some personal information and contact details.
  • Step 2: Upload ID – As you are looking to invest a large sum of capital, eToro will ask you to upload a copy of your government-issued ID.
  • Step 3: Deposit Funds – You can fund your eToro account in several ways – which includes a bank transfer, debit/credit card, or e-wallet. If you’re looking to deposit the full £100k right now – a bank transfer is likely the best option.
  • Step 4: Search for Asset – Use the search box at the top of the page by entering the name of the asset you wish to invest in. Once the correct asset loads, click the ‘Trade’ button.
  • Step 5: Invest £100k – To complete the investment process, enter your stake in the ‘Amount’ box before clicking on ‘Open Trade’.

As per the above step-by-step walkthrough, you can invest £100k in less than 10 minutes from start to finish when using eToro. We offer a more comprehensive explanation of the investment process further down.

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 1: Where to Invest £100k  – Full Broker Reviews

When searching for the best broker to use to invest £100k online, you need to consider the following factors:

  • Is the broker regulated by the FCA?
  • Are your funds (up to the first £85k) covered by the FSCS?
  • What investments does the broker give you access to?
  • What fees will you be charged to invest?
  • Does the broker offer a suitable level of customer service?

Taking the above metrics into account, we found that the brokers listed below are well worth considering when investing £100k online.

1. eToro – Overall Best Place to Invest £100k in the UK

bitcoin today

eToro is our number one pick when it comes to investing money online in the UK. This popular broker offers an assortment of assets across various markets – so you can easily build a diversified portfolio with your £100k investment. For example, if you’re thinking about investing some of your £100k into index funds – you will find ETFs that track the S&P 500, Dow Jones, NASDAQ 100, FTSE 100, and more. You will also find thousands of stocks from 17 marketplaces – both in the UK and abroad.

For example, you can invest in stocks listed on the NYSE, NASDAQ, and London Stock Exchange, as well as markets in Europe, Hong Kong, Saudi Arabia, and more. All of the stocks and ETFs at eToro are offered commission-free, meaning no dealing charges. Plus, when you invest in UK-listed stocks, eToro waivers the 0.5% stamp duty tax. Best of all, there is no surcharge to invest in international stocks – which saves you a considerable amount of fees.

etoro review

In addition to stocks and ETFs, eToro also allows you to invest in cryptocurrencies, indices, forex, hard metals, agricultural products, energies, and more on a spread-only basis. This means that the only trading fee applicable comes from the gap between the bid and ask price. You can also invest in ready-made portfolios that track a specific niche market. This includes stocks involved in renewable energy, emerging technologies, driverless cars, 5g, and more.

Alternatively, you might also consider investing passively in a Copy Trader. This feature will see you choose a seasoned investor from a market that interests you (e.g stocks or forex), and then eToro will copy and paste all future trades in your own portfolio. In terms of the fundamentals, eToro is FCA-regulated and FSCS-covered. You can easily open an account by providing some personal information and depositing funds with a debit/credit card.

Pros

  • Invest in stocks at 0% commission and ZERO stamp duty
  • Minimum investment per stock investment is $50
  • Supports debit/credit cards, e-wallets, and bank transfers
  • Regulated by the FCA and covered by the FSCS
  • Used by over 20 million people
  • Perfect for beginners
  • Social and copy trading tools

Cons

  • Perhaps too basic for technical traders
  • No support for MT4 or MT5

 67% of retail investor accounts lose money when trading CFDs with this provider.

2. Capital.com – Low-Cost Broker With 4,000+ Commission-Free Markets

capital.com review

If you’re want to allocate some of your £100k investment funds into short-term trading strategies, Capital.com is a good option. This online broker gives you access to contracts-for-differences – or CFDs. These are financial instruments that track asset prices in real-time, meaning that you can gain exposure to your chosen market without owning anything. For example, if the global spot price of gold is $1,700 per oz, you need to determine whether the price will rise or fall.

When you trade assets in this way, you can apply leverage to your positions. If you are a UK retail client, leverage limits are capped at 1:30, albeit, this will depend on the asset. For instance, major currencies can be traded with leverage of 1:30 and stocks at 1:5. By trading CFDs at Capital.com, you can also engage in short-selling positions. For example, you might look at Apple stocks and think that they are overvalued – so you would simply need to place a sell order to try and profit from this.

capital.com review

When it comes to fees, Capital.com is a 0% commission broker. Spreads are tight, and as you are trading CFDs, no stamp duty tax is applicable. No fees are charged on deposits or withdrawals, either. If you decide to trade spread betting instruments at Capital.com, you won’t be required to pay any capital gains tax. Safety and trust should not be an issue at Capital.com, as the broker is authorized and regulated by the FCA. Supported payment methods include e-wallets, debit/credit cards, or a UK bank transfer.

Pros

  • Top-rated spread betting and CFD broker
  • Licensed by the FCA
  • £20 minimum deposit (debit/credit cards and e-wallets)
  • 0% commission on all markets
  • Tight spreads and no fee on deposits or withdrawals
  • Supports thousands of financial markets
  • Convenient for newbies

Cons

  • Experienced traders might consider the broker too basic
  • £250 minimum deposit on bank transfers

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.25% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.

3. AvaTrade – Trade the Financial Markets at 0% Commission

avatrade review

If you are an experienced investor that is looking to trade with a large amount of capital, AvaTrade is arguably one of the best brokers for the job. First and foremost, AvaTrade is regulated by the Central Bank of Ireland alongside six other reputable bodies. The platform is authorized by the FCA too – so you can trade in comfort knowing that you have regulatory oversight on multiple fronts. At AvaTrade, you can deposit funds for free with a debit/credit card or bank account, and then choose from a wide selection of trading platforms.

This includes AvaTrade Web Trading, AvaTradeGO, MT4 and, MT5, You also have AvaOptions, which is a specialist options trading portal. Supported assets at AvaTrade – all of which come in the form of CFDs or spread betting markets, include commodities, stocks, ETFs, bonds, and indices. There is also a dedicated forex trading department that covers dozens of major, minor, and exotic markets.  Although AvaTrade is better suited for seasoned traders, the platform does attract many beginners.

avatrade review

This is because you can get started with a minimum deposit of just £100. Plus, as soon as you have registered, you can trade in a risk-free environment via a demo account. This mirrors live market conditions and you will have access to a full fleet of trading tools – such as charts, real-time pricing, and technical indicators. When it comes to fees, AvaTrade has a 0% commission policy in place across all of its supported markets. Spreads are tight when trading major instruments and nothing is charged on withdrawals.

Pros

  • Regulated in seven jurisdictions
  • 0% commission on all supported markets
  • Offers spread betting and CFD instruments
  • Minimum deposit of just £100
  • Free demo account
  • Supports MT4 and MT5
  • Paypal accepted

Cons

  • Spread betting department limited to just 200+ financial markets
  • No support for instant bank transfers

Trading CFDs and FX Options entail risk and could result in the loss of your capital.

Step 2: Best Way to Invest £100k  – Choose an Investment

When thinking about the best ways to invest £100k, you should draw up a shortlist of asset classes that are suitable for your risk profile. It goes without saying that the higher the returns that you seek, the more risk you should be prepared to take. This is why it is best to create a diversified portfolio across dozens of different markets, as this will help balance out the risk of each asset. 

We have narrowed down our list of the best ways to invest £100k in the UK to just five options – which you can read about in the sections below.  

Growth Industries – Overall Best Way to Invest £100k in the UK

With an investment of £100k, you can build a portfolio of stocks that focus on industries of the future. In doing so, you stand the chance to invest in companies that are involved in innovative products and services that could one day shape the way in which society lives. As a prime example, electric vehicles are sure to play a major part in the future of transportation. In order to gain access to this market, you might consider buying shares in firms such as Tesla or Nio.

vanguard growth etf

You then have the emergence of blockchain technology and digital currencies, so a stock like Coinbase would be ideal for this purpose. Alternatively, you might even consider investing in an ETF that specifically targets growth industries. One such example is the Vanguard Growth ETF, which consists of over 285 growth stocks from a wide range of industries and sectors. Either way, by backing stocks and ETFs that target growing niches, you can invest at a highly favorable price by getting in early.

Invest in Growth Industries Pros

  • Invest in up-and-coming companies
  • Gain exposure to new and exiting technologies
  • By investing early you will get a highly favorable entry price
  • You can invest in growth industries via an ETF
  • Potential to earn above-average market gains

Invest in Growth Industries Cons

  • Each growth industry is likely to have winners and losers
  • It can be risky to invest in unproven business models

 67% of retail investor accounts lose money when trading CFDs with this provider.

Blue-Chip Stocks – Invest £100k into a Basket of Blue-Chip Stocks

While growth companies allow you to invest in new and exciting sectors and industries, blue-chip stocks will provide your portfolio with a lot more in the way of stability. This is because, in the vast majority of cases, blue-chips refer to firms that have not only been trading for many decades, but they dominate their respective sector. This means that you will be investing in companies with a long-standing track record on the stock market and oftentimes – pay regular dividends.

dow jones etf

Some of the most recognized blue-chip stocks in the UK include British American Tobacco, AstraZeneca, HSBC, Unilever, and BP. Over in the US, popular blue-chip stock investments include Mircosoft, Apple, IBM, Johnson & Johnson, and Procter & Gamble. Perhaps the best way to gain access to a basket of blue-chip stocks is to invest in the Dow Jones Industrial Average via an ETF. This will mean indirectly buying all 30 blue-chip stocks that contribute to the Dow Jones – but through a single investment.

Blue-Chip Stocks Pros

  • Invest in strong and stable companies
  • Most blue-chips have been operational for many decades
  • Add some stability to your portfolio
  • Many blue-chip stocks pay regular dividends
  • Less risk in comparison to growth stocks

Blue-Chip Stocks Cons

  • Returns will be more modest
  • Not all blue-chip stocks pay dividends

 67% of retail investor accounts lose money when trading CFDs with this provider.

Index Funds – Diversify Your £100k Investment via Stock Index Funds

Index funds are typically offered by ETF providers like SPDR, Vanguard, and iShares. The main concept here is that the index fund will track a pre-defined marketplace, which the ETF will look to mirror like-for-like. Let’s take the S&P 500 as a prime example. This stock market index fund will track 500 top-performing companies that are either listed on the NYSE or NASDAQ. This will include the likes of Apple, Microsoft, Facebook, Tesla, Disney, Coca-Cola, and Pepsi.

nasdaq 100 inex fund

Each index fund will be weighted so that it aligns with the respective market as best as possible. For instance, while Microsoft contributes about 6% to the S&P 500, Visa is weighted at just 1%. There are dozens of other stock index funds that you might consider for your portfolios – such as those that track the FTSE 100, AIM, Dow Jones, NASDAQ 100, or the EURO STOXX 50.  Once you complete your index fund investment, you will be entitled to your share of any dividends that the ETF provider receives.

Stock Index Funds Pros

  • Invest in hundreds of companies through a single index fund trade
  • Dozens of leading stock index funds to choose from
  • Passive investment stream
  • The ETF provider will regularly rebalance the index fund portfolio
  • You will be entitled to your share of any dividends received

Stock Index Funds Cons

  • Your index fund investment will decline when the stock markets are down
  • You might be missing out on more attractive gains

 67% of retail investor accounts lose money when trading CFDs with this provider.

Bonds – Invest £100k into Corporate and Government Bonds

Bonds are attractive to those that seek predictable income flows. This is because – in the vast majority of cases, bonds pay a fixed rate of interest. This means that as long as you hold onto the bond instrument until it expires, you will know exactly how much you will make. In terms of risk and potential rewards, this will ultimately depend on the bond that you decide to buy. For example, you have bonds issued by the US (Treasuries) and UK (Gilts) governments, which attract an annual coupon yield in the region of 1-2%.

bond etf etoro

This is because the risks of investing in these bond types are virtually non-existent. On the other hand, if you were to invest in corporate bonds, the risks are much higher. This is because companies do not have the backing of a central bank or government. In turn, the coupon yields available on corporate bonds will be more attractive. With that said, it might be best to invest £100k in a bond ETF. In many cases, this will give you access to thousands of government and corporate bonds with various risk ratings and maturity dates.

Stock Index Funds Pros

  • Bonds offer a predictable flow of income
  • Most bonds offer fixed-rate yields
  • Government bonds issued by the UK and US are virtually risk-free
  • Corporate bonds often come with an attractive yield 
  • Completely passive – no need to do anything once you have invested  

Stock Index Funds Cons

  • Government and high-grade corporate bonds pay very low yields
  • You always face the risk of the bond issuer defaulting on a payment

 67% of retail investor accounts lose money when trading CFDs with this provider.

REIT – Invest £100k into the UK or International Real Estate Industry

If you’re looking to invest £100k into the UK real estate market, this likely won’t be enough to get your foot on the property ladder. You can, however, consider investing some of your £100k into a REIT (Real Estate Investment Trust). Your chosen REIT will collect funds from thousands of investors – much like any other ETF or mutual fund. In doing so, the REIT will purchase real estate holdings on behalf of its investors. Then, any capital gains appreciation on the properties will be reflected in the REIT share price.

REITs

Furthermore, and perhaps most importantly, REITs collect rental payments from tenants. As an investor, you would be entitled to your share of the proceeds after fees. Ultimately, REITs allow you to invest in the UK and international real estate markets without directly owning properties. And, as the REIT provider will find, manage, and replace tenants, you will be investing in a 100% manner. Some of the sectors that REITs cover include commercial buildings, residential units, multi-family complexes, shopping malls, and healthcare facilities.

REITs Pros

  • Invest in properties without needing to own anything directly
  • Hundreds of REITs to choose from
  • REITs cover residential units, business offices, shopping malls, and more
  • Earn your share of any rental payments after fees
  • 100% passive – no need to manage tenants or collect payments  

REITs Cons

  • Fees are much higher than stock index funds
  • Returns are more modest than other asset classes

 67% of retail investor accounts lose money when trading CFDs with this provider.

Step 3: How to Invest £100k Today – Detailed Walkthrough

Once you have made a decision of what assets to add to your £100k portfolio, the final step is to head over to your chosen broker and complete each investment. To show you how the process works at eToro, we have provided a detailed walkthrough. This covers the process of opening an account, making a deposit, and setting up an order.

Open an Account

Visit the eToro website, hit the ‘Join Now’ button, and follow the on-screen instructions to open an account. You will need to provide some personal information – such as your name and home address, as well as your email and telephone number.

how to join etoro

Next, upload a copy of your government-issued ID and a proof of address (e.g. bank account statement). This is known as the KYC (Know Your Customer) process and it is a legal requirement for all FCA-regulated brokers to comply with.

Deposit Funds

Head over to your account dashboard and make a deposit. eToro supports UK bank account transfers, e-wallets, and debit/credit cards.  

Search for Investment

At the top of the screen, you will see a search box. Simply enter the name of the asset you wish to invest in and click the ‘Trade’ button.

stocks at etoro

If you can’t find the asset you want to invest in, click on ‘Trade Markets’. You will then be presented with the supported markets that eToro offers, which you can narrow down by the asset class (e.g. stocks).

Complete Investment

Finally, in the ‘Amount’ field, enter your investment size. 

stocks at etoro

To complete the process, click on ‘Open Trade’. If the markets are closed, you will instead need to click on ‘Set Order’.

How to Invest £100k In The UK – Conclusion

With a sum of £100k at your disposal, you have the chance to invest in a wide variety of assets and markets. This will allow you to create a diversified portfolio – rather than being exposed to one or two financial instruments. For example, you might decide to spread your capital out across stocks, bonds, index funds, and REITs. 

To get the investment process started right now, you can open an account with eToro in under five minutes. Then, you will have access to thousands of markets – many of which can be traded at 0% commission. Most importantly, your £100k investment is safe at eToro – as the broker is authorized and regulated by the FCA.

eToro – Best Broker to Invest £100k

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • Ability to copy more experienced investors and their decisions
  • eToro crypto wallet included which makes it beginner-friendly
0% Commissionstart TradingOur score 10

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About Kane Pepi PRO INVESTOR

Kane Pepi writes for several high profile publications such as InsideBitcoins, the Motely Fool, and Learnbonds. Based in Malta, Kane is extremely skilled at complex subjects related to financial matters - including a Bachelor’s Degree in Finance, a Master’s Degree in Financial Crime, and actively engaged in Doctorate Degree research, for the money laundering threats of the blockchain economy.