Invest £50k – Best Ways To Invest £50,000 In The UK

If you have £50k to invest but you’re not quite sure where to put your money, you need to think about what sort of returns you wish to make and how much risk you are willing to take to get there. It is also important to ensure you diversify well, meaning that you will add a wide range of assets to your portfolio to help reduce the risk.

In this guide, we discuss the best ways to invest £50k in a risk-averse manner through an FCA-regulated brokerage site.

#1 Broker to Invest £50k – eToro

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How To Invest £50k in the UK – Choose a Broker

Before you can start buying assets with your £50k investment fund, you will need to choose a regulated broker.  The best ways offering investment services to UK residents can be found below. 

  • eToro – Overall Best Place to Invest £50k in the UK
  • Capital.com – Low-Cost Broker With 4,000+ Commission-Free Markets
  • AvaTrade – Trade the Financial Markets at 0% Commission

We review each of the above investment sites further down in this guide.

Best Ways to Invest £50k in the UK – Overview

We believe that the best way to invest £50k in a diversified manner is to consider a wide range of markets. The most suitable assets for this purpose can be found below. 

  1. Stock Index Funds – Overall Best Way to Invest £50k in the UK
  2. Dividend Stocks – Invest £50k into Established Stocks That Pay Dividends
  3. Growth Stocks – Invest £50,000 into High Growth Stocks
  4. Gold – Invest £50,000 into a Proven Store of Value
  5. CopyPortfolios – Passively Invest £50k into a Ready-Made Portfolio

You will find a full evaluation of why we think the above assets are worth considering further down in this guide.

How to Invest £50k in the UK – A Quick Guide For 2021

In the sections below, we will walk you through the process of how to invest £50k with eToro. This popular broker is regulated by the FCA and covered by the FSCS, and you will be able to invest in stocks and ETFs on a 0% commission basis.

  • Step 1: Open an Account with eToro – Head over to the eToro website and create an account. You will need to provide some personal information and choose a username and password.
  • Step 2: Upload ID – As you will be funding your account with more than $2,250 (about £1,600), you will need to upload a copy of your government-issued ID.
  • Step 3: Deposit Funds – You can deposit your £50k investment into your eToro account via a debit/credit card or bank transfer.
  • Step 4: Search for Market – Click on the ‘Trade Markets’ button and find the asset you wish to invest in. You can also find your preferred market by using the search bar.
  • Step 5: Invest £50k – You will now need to complete your order by entering the amount of capital you wish to invest in the asset. Finally, click on the ‘Open Trade’ button to complete your investment.

The above steps highlight just how easy it is to invest £50k in the UK when using the user-friendly and regulated brokerage site eToro.

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

Step 1: Where to Invest £50k  – Full Broker Reviews

When choosing an online broker, the most important thing to assess is whether or not the provider is regulated by the FCA and if your £50k investment funds are covered by the FSCS. You also need to explore key metrics surrounding fees, supported markets, and customer service.

In the sections below, you will find full reviews of the best brokers in the UK that allow you to invest £50k in a low-cost and secure way.

1. eToro – Overall Best Place to Invest £50k in the UK

bitcoin today

eToro – which is now used by over 20 million clients, is regulated by the FCA, ASIC, and CySEC – and your £50k is covered by the FSCS scheme. This ensures that you can deposit and invest capital in a safe way. This top-rated brokerage site allows you to buy stocks and ETFs on a 0% commission basis and without needing to pay any stamp duty tax. This covers hundreds of UK-listed shares and thousands of intentional stocks – such as those listed in Hong Kong, and the US.

The minimum stock and ETF investment at eToro is just $50 (about £36), so you will be able to diversify across a huge number of sectors and risk levels with your £50k investment. eToro is also home to a number of other asset classes and investment services. For instance, you will find more than 30 leading cryptocurrencies hosted – including the likes of Bitcoin, Ethereum, Dogecoin, and Ripple (XRP). You will also find precious metals like gold and silver, forex markets, indices, and even natural gas and oil.

etoro review

If you’re looking at ways to invest £50k passively, eToro is also a great option to consider. This is because the platform offers dozens of ready-made portfolios – all of which we focus on a specific strategy. For instance, you will find portfolios that target dividend stocks, renewable energy stocks, Big Tech stocks, and even COVID-vaccine stocks. You might also consider the Copy Trading tool, which allows you to invest money into a successful eToro trader.

Put simply, any positions that your chosen trader enters and exits on the eToro platform will also be replicated in your portfolio. If you like the sound of eToro, you can open an account online or via your mobile device in under two minutes. The minimum deposit is just $200 (about £145) and you can fund your account via a debit/credit card, e-wallet, or bank transfer. Then, it’s just a case of choosing which investments you wish to make with your £50k fund.

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. AvaTrade – Trade the Financial Markets at 0% Commission

avatrade review

AvaTrade is an online broker that allows you to trade CFD and spread betting markets. As we covered with Capital.com, this means that you can trade with leverage and choose from a long or short position on all supported markets. AvaTrade is well-regulated, as the platform is licensed in no less than seven jurisdictions. The platform is also planning to initiate its IPO on the London Stock Exchange in the coming months, so all in all, AvaTrade is a broker that can be trusted.

In the asset department, you will find a plethora of currency markets, digital assets (professional clients only), ETFs, indices, and stocks. The latter includes stocks from the UK and US markets. Much like Capital.com, AvaTrade offers a 0% commission service across all of its supported markets. Spreads are very competitive too, and no deposit or withdrawal fees apply. Once you have opened an account with AvaTrade, you can add funds with a debit/credit card or bank transfer.

avatrade review

Then, you can choose from a variety of platforms depending on your skillset. For example, experienced traders typically use AvaTrade via MT4 or MT5. However, if you are just starting out in the online trading space, you can also use the native AvaTrade platform via your web browser. Either way, all supported platforms at AvaTrade come with plenty of trading tools that can help you predict the markets. This includes a plethora of charting tools, technical indicators, and demo account facilities.

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.

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

capital.com review

Capital.com is also a popular online broker that is regulated by the FCA and covered by the FSCS. However, this platform specializes in financial derivatives, meaning that you can allocate your £50k investment into more advanced strategies. This is because the CFDs and spread betting markets offered by Capital.com allow you to go long or short on the respective financial instrument. In other words, you can attempt to profit from both rising and falling market prices, which offers enhanced flexibility.

In total, you will find over 4,000 financial markets at Capital.com. In the shares department, covers UK companies listed on the London Stock Exchange and AIM. You can also trade stocks listed in the US, Canada, Singapore, Hong Kong, and lots of European markets. Capital.com also allows you to trade ETFs, index funds, precious metals, energies, bonds, forex, and more. If you are a professional trader, you can also access over 200+ cryptocurrency pairs.

capital.com review

All of the assets available on the Capital.com website can be traded with leverage. This starts at 1:5 on stocks and goes up to 1:30 on major forex markets. Professional clients will be offered higher limits. Nevertheless, regardless of the financial instruments you trade on Catpial.com, you will not be charged any commissions. Spreads are very competitive too and deposits and withdrawals are fee-free. This is the case across debit/credit cards, e-wallets, and bank transfers.

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.

Step 2: Best Way to Invest £50k  – Choose an Investment

So now that you have selected a broker, the next step is to think about which investments to add to your £50k portfolio. As we briefly noted earlier, the best approach here is to consider a wide range of markets via a diversified strategy – which will ensure that you are not overexposed to a small number of assets. 

Taking this into account, below you will find our market analysis on the best ways to invest £50k in the UK.

Stock Index Funds – Overall Best Way to Invest £50k in the UK

The first asset class to look at when searching for the best ways to invest £50k is that of index funds. These are investment funds that track specific markets on the stock exchange – meaning that you will be buying a large collection of shares through a single trade. For example, you might consider an index fund that tracks the FTSE 100. This means that your chosen provider will buy all 100 shares that are on the UK’s primary index – which we cover the likes of British American Tobacco, AstraZeneca, Vodafone, Royal Mail, and BP.

Over in the US markets, it’s also worth considering the S&P 500 and Dow Jones for your £50k investment fund. The former will give you access to 500 large-cap stocks that are listed in the US – such as Tesla, IBM, Amazon, and Apple. The latter consists of 30 carefully selected US stocks that each pay dividends – such as Salesforce, Disney, Exxon Mobil, and American Express. You might even consider adding some index funds that track markets in Europe and Asia-Pacific.

best index funds

Either way, the reason that index funds are one of the best ways to invest £50k is that you can instantly diversify across hundreds or even thousands of stocks. Plus, as you will need to go through an ETF provider like Vanguard or iShares, your investments will be managed on your behalf. For instance, if a new UK company is added to the FTSE 100, the ETF provider in question will buy the respective shares at the correct weight. In turn, it will also sell the shares applicable to the company that was removed from the FTSE 100.

Another advantage of allocating some of your £50k investment into index funds is that your money is readily available when you need it. This is because index fund ETFs are listed as stocks on public exchanges, so you can sell your position at any given time. At eToro, the minimum index fund investment is just $50 – and there are dozens of options to choose from. Plus, all ETFs at eToro can be purchased on a 0% commission basis. As such, you can diversify across heaps of different funds in a low-cost manner.

Index Funds Pros

  • Index funds are professionally managed by ETF providers
  • Invest in dozens or even hundreds of stocks via a single index fund purchase
  • Great for diversification purposes
  • Index funds track the wider markets
  • Index funds are listed on public exchanges so you can cash out at any time

Index Funds Cons

  • If the wider stock markets are down, so will the value of your index fund investment
  • You won’t be able to add or remove stocks

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

Dividend Stocks – Invest £50k Into Established Stocks That Pay Dividends

Once you have selected a few index funds that you like the look of, the next asset class to consider is that of dividend stocks. As the name suggests, these are simply stocks that generate regular dividend payments – which are typically yielded every three months. With that said, most dividend stocks have a number of characteristics that are attractive to risk-averse investors in the UK. For instance, if a company is able to pay dividends, in theory, this should illustrate that the firm has a strong balance sheet.

If it didn’t, it wouldn’t have the financial means that take cash out of the company and into the hands of its shareholders. Secondly, some of the best dividend stocks in this marketplace are leaders in their respective industries. This means that while share price growth is going to be somewhat modest, you can usually rely on a stable and consistent dividend policy. What we also like about this niche of the financial markets is that there are dozens of dividend ‘aristocrats’ and ‘kings’ to choose from.

best dividend stocks

For those unaware, a dividend aristocrat is a stock that has increased the size of its dividend every three months for at least 25 consecutive years. While dividend kings have achieved this feat for no less than 50 consecutive years. Examples of the latter include Procter & Gamble (65 years), 3M (63 years), Johnson & Johnson (59 years), Coca-Cola (59 years), and Colgate-Palmolive (58 years). Ultimately, on each occasion that you receive a dividend, you can reinvest this back into the markets to benefit from compound interest.

Dividend Stocks Pros

  • Receive a dividend payment every three months
  • Reinvest your dividends to benefit from compound interest
  • Dozens of dividend aristocrats and kings to choose from
  • Also, benefit from share price increase
  • The best dividend stocks are established and stable companies

Dividend Stocks Cons

  • Companies can suspend or outright cancel their dividend policy at any time
  • Share price loss can counter any gains you make from dividends

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

Growth Stocks – Invest £50,000k into High Growth Stocks

In the previous section, we discussed that dividend stocks offer a steady way to grow your wealth through modest capital gains and quarterly payments. At the other end of the scale, you have so-called growth stocks, which, as the name suggests, refer to companies that are growing at a faster rate than the market average. This is because growth stocks are typically at the very start of their journey or perhaps offer innovative products and services that are yet to be proven.

These core characteristics of growth stocks offer both benefits and drawbacks from a risk/return perspective. On the one hand, many growth stocks have generated substantial returns in recent years – with the likes of Tesla, Square, and Roku outperforming the wider market by some distance. On the other hand, not all growth stocks succeed, meaning that the risk of financial loss is far greater. For instance, Uber is only just about worth more than its IPO listing price of 2019.

best growth stocks

You then have Coinbase, which is trading at a lower price than its 2021 IPO. With this in mind, if you are going to allocate some of your £50k investment into growth stocks, it’s best to cover all bases by diversifying well. Not only does this mean investing in a large number of growth stocks, but across many sectors and industries. For instance, it’s worth focusing on a variety of niche markets that are expected to grow in the coming years, such as blockchain, artificial intelligence, drone technology, and renewable energies.

Growth Stocks Pros

  • Many growth stocks return above-average market returns
  • You are often investing in new and innovative products and services
  • Hundreds of growth stocks to choose from
  • Easy to diversify when going through an ETF

Growth Stocks Cons

  • Growth stocks carry more risk as the respective company is often new and unproven
  • You won’t see any dividends for some time as growth stocks reinvest profits into the company

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

Gold – Invest £50,000 into a Proven Store of Value

This guide on the best ways to invest £50k has thus far focused its attention on the stock markets. However, seasoned investors will tell you first-hand that having your portfolio overexposed to stocks can be risky. After all, the stock markets will move in cycles, so when confidence is low, this will bring the wider industry down. With this in mind, one of the best ways to diversify your £50k investment is to look at alternative assets that are inversely correlated to stocks.

Perhaps the safest option in this respect is to consider allocating some of your funds to gold. As history suggests, when the stock markets are down, investors will often turn to gold, as the precious metal is globally viewed as a store of value. This is a great hedging strategy that will ensure your portfolio is not only well diversified – but balanced. In terms of how to invest in gold, no longer do you need to purchase and store physical bars.

invest in gold

Instead, when using a broker like eToro, you can invest in gold directly from the comfort of your home. In fact, eToro gives you access to the SPDR Gold Trust, which is the largest physically-basked gold fund in this marketplace. By investing in this ETF, you will gain direct exposure to the global price of gold. And best of all, going the ETF route ensures that your gold investment is liquid – meaning that you can cash out at any given time.

Gold Pros

  • Great way to hedge against falling stock prices
  • Proven store of value
  • Easy to invest online via a gold ETF
  • No need to physically buy gold bars and coins

Gold Cons

  • Will often struggle when the stock markets are performing well
  • Does not generate income like stocks or bonds 

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

CopyPortfolios – Passively Invest £50k into a Ready-Made Portfolio

Building a diversified portfolio is not only time-consuming when you factor in the amount of market researching required, but beginners might find the process somewhat daunting. The good news is that many online brokers in the UK allow you to invest in ready-made portfolios that are managed on your behalf. This allows you to create an instantly diversified basket of assets based on a certain strategy. The best option in this respect is eToro – which offers dozens of CopyPortfolios. 

This covers a range of risk profiles and financial goals – so there is certain to be a portfolio to match your investment profile. For example, at one end of the scale, you have the Utilities CopyPortfolio – which focuses on stocks involved in the provision and supply of water and electricity. This includes everything from National Grid and E.ON to United Utilities and Natural Energy Group. You then have the 5GRevolution CopyPortfolio.

etoro CopyPortfolio

This ready-made portfolio covers stocks that are actively involved in the growth of 5g technology – such as American Tower, Nokia, Cisco Systems, and Samsung. Other popular CopyPortofolios target cryptocurrencies, renewable energy, growth stocks, Big Tech, and even driverless cars. Irrespective of your chosen strategy, the minimum investment per CopyPortfolios starts at just $1,000 (about £735). This means that with a £50k investment, you can diversify across a wide selection of ready-made portfolios.

CopyPortfolios Pros

  • Invest in a specific market niche – such as renewable energy or Big Tech
  • 100% passive way to invest £50k
  • Diversify across multiple ready-made portfolios
  • Portfolios are managed and rebalanced on your behalf
  • No commissions

CopyPortfolios Cons

  • Minimum investment starts from $1,000 per portfolio – sometimes more
  • You don’t get to decide which assets are added to the respective portfolio

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

Step 3: How to Invest £50k Today – Detailed Walkthrough

The final part of the investment process is to open an account with your chosen online broker, make a deposit, and proceed to purchase your desired asset. If this is your first time investing from the comfort of your home, the walkthrough below will take you through the process step-by-step.  

Open an Account

eToro is the best online broker in the UK – as the platform is heavily regulated, it offers super-low fees, and you do not need any prior investment experience. As such, the first step is to visit eToro and elect to open an account.

how to join etoro

On top of choosing a username and password and entering your email address, you will need to provide eToro with some personal information. This covers your name, home address, and national insurance number. 

Furthermore, as you are depositing more than $2,250, FCA regulations require you to upload a copy of your passport or driver’s license. This will then be approved by eToro in under two minutes – meaning that all account restrictions will be removed.

Deposit Funds

If you are looking to deposit the full £50k right now, it’s best to go with a debit/credit card or UK bank transfer. If depositing smaller amounts, you might also consider Paypal or Skrill. 

Search for Investment

With a fully-funded account, you can now search for the asset that you wish to invest in. We prefer using the search box, as eToro is home to thousands of financial markets. In our example, we are searching for the S&P 500 – which is a leading index fund that tracks 500 large-cap stocks based in the US. 

index funds at eToro

Alternatively, you can also view the full list of assets and markets supported by eToro by clicking on the ‘Trade Markets’ button. 

Complete Investment

The final step will require you to enter your investment size into the ‘Amount’ box. This needs to be stipulated in US dollars and the minimum across all assets is $50 apart from cryptocurrencies, which is just $25. 

index funds at eToro

To complete the investment process, click on the ‘Open Trade’ button.

Note: If the market you are investing in is currently closed, you will instead see ‘Set Order’. In clicking it, eToro will place your order when the market reopens in the morning.

How to Invest £50k UK – Conclusion

Investing £50k into the financial markets is a lot of capital to put at risk – so it’s important that you choose your assets and markets wisely. As covered throughout this guide, the best way to do this is to diversify across a range of investments – such as index funds, dividend stocks, gold, and even CopyPortfolios. 

All of these assets and more can be invested in at eToro in under five minutes. This FCA-regulated broker is simple to use and offers some of the best fees in this marketplace. For instance, you can invest in stocks and ETFs at 0% commission and other support markers on a spread-only basis.

eToro – Best Broker to Invest £50k

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.