{"id":433120,"date":"2022-05-24T16:10:23","date_gmt":"2022-05-24T15:10:23","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?page_id=433120"},"modified":"2026-04-09T17:08:14","modified_gmt":"2026-04-09T16:08:14","slug":"beginners","status":"publish","type":"page","link":"https:\/\/www.finder.com\/uk\/share-trading\/share-trading-guides\/beginners","title":{"rendered":"Investing for beginners in the UK: 4 steps to help you get started"},"content":{"rendered":"
<\/div>

What guides are you looking for?<\/h3>
What is investing?<\/a><\/div><\/div>
Before you start<\/a><\/div><\/div>
Step 1: Narrow your options<\/a><\/div><\/div>
Step 2: Choose a platform<\/a><\/div><\/div>
Step 3: Open an ISA<\/a><\/div><\/div>
Step 4: Start investing<\/a><\/div><\/div><\/div><\/div><\/article>

Meet Finder\u2019s investment experts<\/h3>

Our team can help you navigate the world of investing. We start with the basics \u2013 like why people invest \u2013 explain the jargon and offer practical tips.<\/p>

\"profile<\/p>

Zoe Stabler DipFA<\/a><\/b>
Senior investment writer<\/i><\/p><\/div>

\"profile<\/p>

Danny Butler<\/a><\/b>
Investment publisher<\/i><\/p><\/div>

\"profile<\/p>

Louise Bastock<\/a><\/b>
Deputy editor<\/i><\/p><\/div>

\"profile<\/p>

Alice Guy<\/a><\/b>
Investment and tax writer<\/i><\/p><\/div>

\"profile<\/p>

George Sweeney<\/a><\/b>
Deputy editor<\/i><\/p><\/div>

\"profile<\/p>

Liz Edwards<\/a><\/b>
Editor-in-chief<\/i><\/p><\/div><\/div>

AS SEEN ON:<\/strong><\/div>
\"The<\/div>
\"The<\/div>
\"Financial<\/div><\/div><\/div>
\"Forbes<\/div>
\"The<\/div>
\"Reuters<\/div><\/div><\/div>
\"Sky<\/div>
\"BBC<\/div>
\"This<\/div><\/div><\/div><\/div>

What is investing?<\/h3>

Companies issue shares by listing them on a stock exchange, to raise money to plough into the company. When you invest in a company by buying shares in it, you\u2019re buying a piece of the company. If the company does well, other investors will want those shares and pay you more for them. If the company does badly, they\u2019ll pay less.<\/p>

Usually, you buy the shares from a share trading platform \u2013 also called a \u201cshare dealing platform\u201d or an \u201conline broker\u201d \u2013 and the money you pay goes to the investor who\u2019s selling those shares, with a bit to the platform for the service. <\/p>

The money you spend buying shares is called your \u201ccapital\u201d. If your shares become worthless, you could lose all of this \u2013 which is why \u201cCapital at risk\u201d is a warning on investing ads.<\/p>

You\u2019ll quickly encounter terms like \u201cFTSE 100\u201d and \u201cS&P 500\u201d. The Financial Times Stock Exchange 100 Index is just the top 100 companies listed on the London Stock Exchange that have the highest value, based on the total value of their shares. Standard and Poor\u2019s 500 is the top 500 companies listed on stock exchanges in the US.<\/p>

Our graph, below, shows how the return from putting your money into a savings account has been peanuts in recent years compared with returns from investing (in general). And if you\u2019d stuck it under the mattress, inflation would have eaten away at the value. All of this shows why people have been turning to investing to look for a better return. With that, though, comes greater risk, and no-one can guarantee what the next 10 years hold.<\/p>