Regular Investing
What is regular investing?
Regular investing means setting up automatic monthly purchases into your investments. You pick a fund or ETF, choose an amount, and your platform (the company that holds your investments) buys it for you every month.
Why is regular investing cheaper?
Many platforms charge lower trading fees for regular investments. Some charge nothing at all. This makes it much cheaper to invest small amounts monthly rather than making manual trades.
What is pound cost averaging?
When you invest regularly, you buy at different prices each month. Sometimes the price is high, sometimes low. Over time, this averages out. You avoid the risk of putting all your money in at the worst possible moment.
Is regular investing better than lump sum?
If you have a lump sum, investing it all at once usually produces better returns over the long term, because your money is in the market longer. But regular investing is good for building a habit and reducing the emotional stress of market timing.
Scrimpr’s ISA comparison covers more platforms than any other UK guide.
Compare ISA Platforms →Key points about regular investing
- Automatic monthly purchases. Set it and forget it
- Often cheaper. Lower or no trading fees
- Smooths out price swings. Pound cost averaging