Invest £10k – Best Ways To Invest £10,000 In The UK

Fact Checked by Gary McFarlane

If you’re looking at ways to invest £10k in the UK, you’ve got plenty of options at your disposal. Depending on how much risk you are willing to take to achieve your financial goals, this includes everything from stocks and ETFs to gold and Bitcoin.

In this guide, we walk you through the best ways to invest £10k and how to safely complete the process with an FCA-regulated broker.

#1 Broker to Invest £10k – eToro

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  • 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
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How To Invest £10k in the UK – Choose a Broker

Before you can get invest £10k in the UK, you first need to choose a suitable broker. Below you will find a brief overview of the best brokers in this space – all of which offer plenty of assets at competitive commissions.  

  • eToro – Overall Best Place to Invest £10k in the UK
  • Capital.com – Low-Cost Broker With 4,000+ Commission-Free Markets
  • AvaTrade – Trade the Financial Markets at 0% Commission

Scroll down to read our comprehensive review of the above brokers.

Best Ways to Invest £10k in the UK – Overview

Based on a variety of risk profiles and financial goals, below you will find the best ways to invest £10k in the UK.  

  1. SPDR Dow Jones Industrial Average ETF – Overall Best Way to Invest £10k in the UK
  2. Portfolio of Stocks – Invest £10,000 into a Diversified Portfolio of Stocks
  3. Bitcoin – Invest £10k into a High Risk/Return Asset Class
  4. Copy Trading – Passively Invest £10,000 into a Seasoned Trader
  5. Bond ETF – Easily Invest £10k into a Bond ETF

Further down in this guide, we explain what each investment offers alongside the potential risks and returns.

How to Invest £10k in the UK – A Quick Guide For 2021

If you are ready to invest £10k into your chosen asset class right now – below you will find a quickfire guide on how to complete the process in under 10 minutes.

  • Step 1: Open an Account with eToroThe number one FCA-regulated broker in the UK to invest £10k is eToro, not least because the platform offers thousands of markets at industry-leading fees. To begin the process, open an account at eToro by entering your personal information.
  • Step 2: Upload ID – To complete the verification process, upload a copy of your passport or driver’s license.
  • Step 3: Deposit Funds – You will need to deposit some funds into your eToro account before you can invest £10k. This top-rated broker accepts debit/credit cards, Paypal, Skrill, and bank transfers.
  • Step 4: Search for Market – You can now search for the market that you wish to invest your £10k into. For example, if you wish to invest in the Dow Jones, you can enter this into the search box and click ‘Trade’ when the market loads.
  • Step 5: Invest £10k – Finally, enter the amount of money that you want to invest into your chosen asset, and click on the ‘Open Trade’ button to confirm.

By following the simple 5-step walkthrough above, you have just learned how to invest £10k at FCA-regulated broker eToro.

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

Step 1: Where to Invest £10k  – Full Broker Reviews

The first step to consider when thinking about the best way to invest £10k is the broker with which you will complete the process. When selecting a broker, not only do you need to ensure it is regulated by the FCA, but that it offers competitive fees and commissions. And of course – you also need to ensure the broker supports your chosen financial market. 

To fast-track the process for you, below you will find reviews of the best brokers in the UK that allow you to invest £10k safely and in a low-cost manner.

1. eToro – Overall Best Place to Invest £10k in the UK

bitcoin today

eToro is an online broker that is regulated by the FCA and covered by the FSCS. You will have access to thousands of stocks – both in the UK and overseas. Additional markets include ETFs and index funds, cryptocurrencies, indices, forex, and commodities. When investing in stocks and ETFs at this popular broker, you will benefit from a 0% commission service. If the market is listed in the UK, eToro will also waiver the 0.5% stamp duty tax that you would ordinarily need to pay.

Other markets on eToro are charged on a spread-only basis, which is still a very competitive way to invest £10k. The minimum investment per trade is just $25 (about £18) on digital currencies and $50 (about £36) on other instruments. This allows you to create a highly diversified portfolio – which is crucial when investing £10k. You can also invest £10k into passive streams at eToro, with the broker offering dozens of ready-made portfolios that are managed on your behalf.

etoro review

You can even invest in a seasoned eToro trader via the Copy Trading tool. This feature will replicate any buy and sell orders that your chosen trader enters, meaning you can sit back and allow your £10k investment to work for you. Most importantly, eToro is a user-friendly broker, so the platform is suitable for both newbies and experienced traders alike. Getting started with an eToro account takes just minutes and you can deposit from just $50 with a debit/credit card, bank transfer, Paypal, Skrill, or Neteller.

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 are more of a short-term trader, you might consider a CFD broker like Capital.com. Authorized and regulated by the FCA, this popular platform gives you access to over 4,000 markets. This includes forex, commodities, UK and international stocks, ETFs, index funds, and indices. All of these financial markets can be traded at 0% commission and tight spreads. The Capital.com platform allows you to apply leverage on your chosen market, too.

Put simply, this allows you to enter positions with more capital than you have in your trading account. Your limits will be determined by the asset and whether you are a retail or professional client – as per FCA guidelines. Additionally, Capital.com gives you the option to go short on an asset. This means that you can still make gains even if market prices are falling. If you’re completely new to CFD trading, Capital.com offers a free demo account that comes pre-loaded with paper funds.

capital.com review

In addition to CFDs, Capital.com also offers spread betting markets. This allows you to trade the aforementioned markets without needing to pay any capital gains, dividends, or stamp duty tax. Getting started at Capital.com rarely takes more than a few minutes, and the minimum deposit starts at just £20 when you use an e-wallet or debit/credit card. Those wishing to deposit funds via bank transfer will need to meet a higher minimum of £250. Finally, Capital.com is also covered by the FSCS – so safety should be no concern.

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

AvaTrade is a direct competitor of Capital.com – as both platforms specialize in CFD and spread betting markets. This is also the case when it comes to fees, as AvaTrade allows you to enter buy and sell positions on a 0% commission basis. Spreads are typically very tight on this top-rated platform, especially when trading major markets like stocks and gold. At AvaTrade, you can also enter positions with leverage (within FCA limits) and choose from a long or short position on all orders.

This top-rated broker is regulated in no less than seven jurisdictions, and the platform is in the early stages of launching its initial public offering (IPO). As such, you can trade in confidence when using AvaTrade – as safety is assured. In terms of supported markets, AvaTrade is particularly strong when it comes to forex and commodities. The former includes dozens of currency pairs across the majors, minors, and exotics, while the latter covers everything from gold and natural gas to silver and crude oil.

avatrade review

If stocks and ETFs are more your thing, you will find a selection of large-cap companies from the US and UK markets. Additionally, AvaTrade also offers indices, futures, and options. AvaTrade offers its own native trading platform, alongside compatibility with MT4 and MT5. All three of these platforms are arguably more suited for experienced traders, as they come packed with advanced tools that allow you to make informed investment decisions.

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 £10k  – Choose an Investment

Once you have created a shortlist of brokers that you think look conducive for your £10k investment, then comes the difficult part. That is to say, you now need to consider the best way to invest £10k – in terms of assets and markets.

In the sections below, we have created a list of the five best investments to consider – covering core factors such as potential returns, risks, past performance, and more.   

SPDR Dow Jones Industrial Average ETF – Overall Best Way to Invest £10k in the UK

If you are looking for a simple and stress-free way to invest £10k into a proven market that has a long-standing track record – perhaps consider the Dow Jones. In a nutshell, this globally recognized index fund tracks 30 large companies that are publicly listed in the US. Each constituent of the Dow Jones is an established company that dominates its respective sector. This subsequently allows you to invest in the broader US economy in a diversified and passive way.

Like all index funds, the Dow Jones is ‘weighted’. This means that each company within the index fund will contribute a certain amount to the overall portfolio. Strangely, the Dow Jones does this based on the share price of each stock, as opposed to market capitalization. Nevertheless, at the time of writing, the United Health Group and Goldman Sachs carry the largest weighting at just over 7%. After that, you have the likes of Home Depot, Microsoft, Salesforce, McDonald’s, Visa, and Boeing.

dow jones etf etoro

Other constituents include Apple, Nike, Johnson & Johnson, and American Express. As you can see, this covers a leading US-listed company in virtually every sector imaginable. In terms of the investment process, you will need to go through an ETF to gain exposure to the 30 Dow Jones companies. Although there are many options in the market, one of the most popular in the UK is the SPDR Dow Jones Industrial Average ETF.

This ETF was first launched in 1998 and it has generated average annual returns of 8.74% ever since. Furthermore, you will only pay an expense ratio of 0.16% per year when investing with this provider. You will, of course, need to go through a suitable online broker to invest £10k in the SPDR Dow Jones Industrial Average ETF – and eToro stands out in this respect. This is because the broker allows you to invest in ETFs at 0% commission – and the minimum stake is just $50 per trade.

Dow Jones Pros

  • A globally recognized index fund that was first launched in 1896
  • Tracks 30 leading US-listed companies that dominate their respective sectors
  • Average annual returns of 8.74% since 1998
  • Low expensive ratios
  • All 30 companies pay dividends
  • Invest passively – the index fund is regular rebalanced based on market conditions

Dow Jones Cons

  • You won’t be able to add or remove stocks
  • Not as diversified as the S&P 500

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

Portfolio of Stocks – Invest £10k into a Diversified Portfolio of Stocks

Although index funds such as the Dow Jones or FTSE 100 perhaps offer the best way to invest £10k for beginners, some of you might prefer the ‘thrill’ of creating your own portfolio. By this, we mean picking individual stocks based on your own research and financial goals. It goes without saying that you won’t be short of options in this regard – especially when you go through a broker like eToro. After all, this FCA-regulated provider gives you access to 17 stock exchanges.

Not only does this include the London Stock Exchange, but markets in the US, Asia, Europe, and the Middle East, and more. When choosing individual stocks to invest £10k, the most important thing to remember is that you should diversify as best as possible. This means rather than investing £10k into a single company, you will split your capital across dozens or even hundreds of stocks. In fact, not only should your diversification strategy cover a large number of stocks, but various markets and economies.

etoro stocks 0% commission

For instance, at eToro, you can invest in stocks from just $50 – irrespective of how much its shares are trading for. This means that with a £10k investment, you could invest in a huge number of stocks from a variety of exchanges and niches. This might include blue-chip stocks from the US, growth stocks from the UK, and value stocks from Europe. Either way, by investing £10k into a diversified portfolio of stocks, you stand the chance of growing your capital on two fronts.

First, if the value of the stocks increases and you decide to sell, you will make capital gains. Second, if any of your chosen stocks have a dividend policy, you will be entitled to your share of any payments. This is typically distributed every three months, albeit, some companies pay dividends on a bi-annual basis. Finally, just be wary of how much your chosen broker charges in share dealing fees – as diversifying can be expensive. Fortunately, you have brokers in the UK like eToro, which allow you to buy UK and international stocks at 0% commission.

Stock Market Pros

  • Thousands of UK and international stocks to choose from
  • Fractional shares allow you to diversify with ease
  • Many stocks pay dividends
  • Lots of different stock types with various risks and returns
  • Pick and choose stocks that align with your financial goals

Stock Market Cons

  • Researching stocks can be time-consuming
  • It’s best to have a bit of prior investment experience

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

Bitcoin – Invest £10k into a High Risk/Return Asset Class

Cryptocurrencies like Bitcoin won’t be for everyone – as this marketplace is not only speculative and somewhat unproven – but highly volatile. Nevertheless, if you have a slightly higher appetitive for risk and feel comfortable with higher levels of volatility, Bitcoin is well worth considering. This innovative cryptocurrency was first launched in 2009, albeit, it wasn’t until 2017 that the global markets finally took notice of the digital asset.

Back at the start of 2017, you could have bought Bitcoin at a market price of around $1,000. At the end of the same year, Bitcoin breached a price of $20,000. This represents returns of almost 2,000% in just 12 months. In more recent times, Bitcoin sunk to lows of $5,000 in March 2020, only to then go an extended upward trajectory. In fact, Bitcoin surpassed a price of $64,000 in April 2021. This translates into growth of 1,100% in just over one year.

bitcoin price today

As you can see from these numbers, Bitcoin is significantly more volatile than traditional markets – such as stocks or index funds. But, if you time the market correctly, attractive returns are possible. The good news is that you don’t need to have an understanding of blockchain technology or private wallets to invest in Bitcoin these days. On the contrary, when you go through an FCA-regulated broker like eToro, it’s just a case of opening an account, depositing some funds, and choosing how much you want to invest.

Best of all, you don’t even need to buy a full Bitcoin. Instead, eToro allows you to invest from just $25 per trade, which is great for risk-management and diversification purposes. This is especially the case if you have £10k to invest, as allocating such a large amount of capital into a cryptocurrency would not be wise. Instead, it’s best to approach Bitcoin with modest amounts. For the rest of your £10k portfolio, you might consider more stable and proven marketplaces – such as the Dow Jones or S&P 500.

Bitcoin Pros

  • Returns of over 6,000% since early 2017
  • Recognized by some of the largest companies globally
  • No need to buy a full Bitcoin
  • You can invest without needing to understand the technology
  • Cash-out at any time as Bitcoin trades 24/7

Bitcoin Cons

  • Extremely volatile
  • Largely driven by speculation
  • Regulation remains unclear

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

Copy Trading – Passively Invest £10,000 in a Seasoned Trader

Although long-term investing is the most suitable way to approach the financial markets as a beginner, you might be missing out on other opportunities. That is to say, when the global markets are falling, as will the value of your portfolio. This is why many experienced investors prefer to trade assets on a short-term basis with the view of profiting from market trends. However, as a beginner with little experience in this industry, being able to make frequent profits as a swing or day trader can be a challenge.

This is where the eToro Copy Trading tool offers a proven solution. In a nutshell, this feature allows you to invest in a seasoned trader as opposed to a specific asset or market. Once you have chosen a trader to invest in, all future positions will be copied in your own portfolio until you decide to cash out. For example, let’s suppose that you invest £10k into a successful stock trader. The individual risks 5% of their portfolio into an Apple stock trade, subsequently making a profit of 10%.

etoro copy trading

This means that you automatically allocated £500 (5% of £10k investment) into this trade and made a profit of £50 (10% of £500 stake). This allows you to actively trade the financial markets throughout the day without actually needing to do any research, analysis, or evaluation. Instead, everything is 100% automated – so you will be trading in a passive manner. With that said, it wouldn’t be wise to invest the full £10k into just one trader. Instead, you can reduce your exposure and long-term risk by diversifying across several investors.

In fact, the eToro Copy Trading tool allows you to invest from just $500 (about £360) into each trader, so with £10k, that gives you plenty of ways to diversify. Additionally, we should note that eToro doesn’t charge any additional fees or commissions when you invest in the Copy Trading service. Plus, not only can you cash out at any given time, but you have the freedom of adding and removing assets as you wish. This ensures that you retain full control over your portfolio and £10k investment.

Copy Trading Pros

  • Minimum investment just $500 per trade
  • Actively trade the markets in a passive way
  • Thousands of verified traders to choose from
  • No additional fees or commissions
  • Cash-out at any time – as well as add or remove assets
  • Perfect for beginners or time-starved investors

Copy Trading Cons

  • An investor will make trading decisions on your behalf
  • You might choose an investor that goes on a prolonged losing period

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

Bond ETF – Easily Invest £10k into a Bond ETF

The final option to consider in your search for the best £10k investment is that of bonds. This particular financial instrument is suitable for those of you that seek more predictable returns. This is because bonds typically pay a fixed rate of interest every 6 or 12 months until they mature. For example, you might invest £10k in a 10-year bond that pays a yield of 4% annually. This means that you will receive an interest payment of £400 every year and then receive your £10k investment back in 10 years’ time.

However, investing in individual bonds as a retail client can be very difficult. This is because companies will usually distribute bond offerings in bulk, meaning that even at £10k, you might not meet the minimum lot requirement. The good news is that there is a simple way to invest £10k into bonds in the UK – through an ETF. Put simply, you will be investing the capital through an ETF provider that personally buys and sells bonds on behalf of its investors.

Vanguard Total Bond Market ETF

This means that when the bond provider receives an interest payment from the company or government issuer, you will receive your share – proportionate to the amount you invested. There are plenty of suitable ETFs to choose from in the UK – some of which hold thousands of bonds from a variety of markets. For example, let’s take the Vanguard Total Bond Market ETF. This ETF holds no less than 10,000 bonds at the time of writing across both the corporate and government sectors.

For example, while 20% is allocated to government-backed mortgages, 8% is held in bonds issued by financial institutions.  What we also like about the Vanguard Total Bond Market ETF is that you can earn money on two fronts. First, you have the interest payments that the ETF collects throughout each quarter – which will subsequently be distributed to your brokerage account on receipt. However, as the ETF provider will sometimes sell bonds before maturity, this also allows you to earn capital gains.

Bond ETF Pros

  • Invest in bonds without needing to meet a huge minimum lot size
  • Access bonds that would otherwise not be available to UK retail clients
  • Bond ETFs offered by Vanguard gives you access to thousands of instruments
  • Great for those that seek more predictable cash flows
  • You will usually receive your share of interest payments every three months
  • Capital gains are also possible when the ETF provider sells bonds before maturity

Bond ETF Cons

  • Such a large portfolio of bonds can be overwhelming for newbies
  • Returns will be a lot more modest when compared to stocks

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

Step 3: How to Invest £10k Today – Detailed Walkthrough

If you have read our guide on how to invest £10k in the UK up to this point, you should so far have:

  • Chosen an FCA-regulated broker to invest through
  • Chosen the best way to invest £10k for your financial goals and tolerance for risk

The final stage of the process is to now open an account with your chosen broker and invest in your selected assets. If you’re completely new to online investing, the detailed walkthrough below will show you how to get started with eToro in under 10 minutes.

Open an Account

First, visit the eToro website. Look for the ‘Join Now’ button and follow the on-screen instructions by entering your first and last name, mobile number, email address, and chosen username and password.

how to join etoro

Next, you will need to enter your home address, date of birth, and national insurance number. Importantly, if you are looking to invest £10k right now, you will need to quickly go through a KYC (Know Your Customer) process.

This simply requires you to upload a copy of your passport/driver’s license and a proof of address – such as a utility bill or bank statement. eToro will validate these documents in less than a minute, so can then proceed to the next step without delay.

Deposit Funds

Now that you have a verified eToro account, you can proceed to deposit your £10k. The best way to do this is via Visa or MasterCard (both debit and credit cards accepted), as the funds will be added to your account instantly.

You might also consider transferring the funds from your bank account, but this can take 1-3 working days to arrive.

Search for Investment

You can find your chosen asset by using the search box at the top of the screen. For example, we are looking to invest in the Dow Jones ETF offered by SPDR.

dow jones etf etroro

When you see the correct asset loads from the search box, click on the ‘Trade’ button. If you don’t know which asset you want to invest in, click on the ‘Trade Markets’ button to see what options you have.

Complete Investment

You will now see an order box show up on your screen. This requires you to enter the size of your investment. As eToro gives you access to the global financial markets, the platform operates in US dollars. As such, you will need to state your chosen investment amount in USD.

dow jones etf etroro

As you can see from the example above, our order stipulates an investment of $13,600, which, at the time of writing, amounts to approximately £10k.

To complete your investment, click on ‘Open Trade’ – or ‘Set Order’ if the markets are currently closed.

How to Invest £10k UK – Conclusion

If you’re looking to invest £10k into the financial markets from the comfort of your home, you need to ensure that you do so through a trusted and low-cost broker that is regulated by the FCA.

We found that eToro is the best option in this respect, as the broker offers thousands of stocks and ETFs at 0% commission, alongside spread-only markets on indices, commodities, Bitcoin, and more. This popular broker offers a user-friendly interface and getting started with your first investment should take no more than 10 minutes!

eToro – Best Broker to Invest £10k

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$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.