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If you want your money to grow over the long term, one of the simplest things you can do in the UK is invest inside a Stocks and Shares ISA. It’s not a product in itself: it’s a tax-free wrapper around your investments. Here’s how it works, and why I use Trading 212 for mine.
A quick note: I use Trading 212, and the Trading 212 links in this post are my referral link. Sign up through it, deposit the minimum within 10 days, and you’ll get a free fractional share worth up to £100. I get a free share too. This isn’t financial advice. Capital at risk: investments can fall as well as rise.
What is a Stocks and Shares ISA?
Think of it as a protective box. Whatever you invest inside it, such as funds, ETFs or individual shares, is sheltered from UK tax:
- No Capital Gains Tax on your profits
- No tax on dividends
- No need to declare it on a tax return
You can put up to £20,000 a year into ISAs in total, split however you like across different ISA types. The allowance resets every 6 April and can’t be carried forward.
Good to know: From 6 April 2027, under-65s can only put £12,000 a year into Cash ISAs, but the full £20,000 can still go into a Stocks and Shares ISA. Read more in our guide to the Cash ISA cut.
Why a Stocks and Shares ISA rather than cash?
Over long periods, investing in shares has historically grown faster than cash savings. But the value goes up and down, sometimes sharply, so it’s best for money you won’t need for at least five years. Keep your emergency fund in cash first.
Why I use Trading 212
There are plenty of ISA providers. I chose Trading 212 for a few simple reasons:
| Feature | What it means |
|---|---|
| No platform fee | Many providers charge a yearly percentage or flat fee just to hold your ISA; Trading 212 doesn’t |
| Commission-free trading | No fee each time you buy or sell |
| Fractional shares | You can invest from as little as £1, even in expensive shares |
| AutoInvest and Pies | Set up a portfolio and invest automatically every month |
| Interest on uninvested cash | Cash waiting to be invested can earn interest |
The main cost to know about is a 0.15% foreign exchange fee when you buy investments priced in other currencies, such as US shares. For many sterling-priced funds and ETFs, you won’t pay it.
Getting started in 5 steps
- Open your Trading 212 account through my link and choose the Stocks and Shares ISA.
- Verify your identity: it usually takes a few minutes with photo ID.
- Deposit money by bank transfer or card. Deposit at least the minimum within 10 days to receive your free share.
- Choose your investments. Many long-term investors start with a low-cost global index fund or ETF. Read our guide to index funds and ETFs first.
- Automate it with AutoInvest, so a set amount goes in each month without you having to think about it.
Mistakes to avoid
- Don’t use the CFD account. Trading 212 also offers CFDs, which are complex, leveraged products where most retail traders lose money. Stick to the Invest or ISA account.
- Don’t chase hype. Buying whatever is trending rarely ends well. Diversified, long-term investing is less exciting, and that’s the point.
- Don’t withdraw to “time the market”. Staying invested through ups and downs is usually what builds wealth.
The short version
A Stocks and Shares ISA lets your investments grow free from UK tax, with up to £20,000 a year going in. Trading 212 charges no platform fee and no commission, and lets you automate monthly investing. Join through my referral link and deposit the minimum within 10 days to get a free share worth up to £100. Invest for the long term, keep it diversified, and remember that your capital is at risk.
Common questions
Is my money safe with Trading 212?
Trading 212 UK is authorised and regulated by the Financial Conduct Authority. Your investments can still fall in value, which no regulator protects against. Check the FCA register and Trading 212's own information on how client assets are protected.
How do I get the free share?
Open a Trading 212 Invest account or Stocks and Shares ISA through a referral link, verify your identity and deposit the minimum amount within 10 days of opening the account. The share is chosen at random and can be worth up to £100. Trading 212 sets the terms and can change or end the offer.
Does Trading 212 offer a pension (SIPP)?
Not at the time of writing. If you want to invest for retirement with tax relief, you'll need a separate SIPP or your workplace pension.
What should I invest in within my ISA?
That depends on your goals and attitude to risk, and this isn't personal advice. Many long-term investors use low-cost, diversified index funds or ETFs rather than picking individual shares.
This article is general information, not personal financial advice. Your situation is your own, so check the details for yourself or speak to a regulated adviser before making big decisions. Where investments are mentioned, their value can go down as well as up.
