How to Start Investing in the UK | ISAs vs SIPPs, ETFs, Diversification & Beginner Mistakes

In this episode of Investing, Markets & Money, we dive into one of the most common questions for new investors in the UK: how do you actually start investing? Whether you're thinking about opening your first Stocks & Shares ISA, exploring SIPPs, or trying to understand the difference between funds, ETFs and individual shares, this episode breaks everything down in plain English. We’re joined by Richard Hunter, Head of Markets at Interactive Investor, winner of the “Best Investment Platform” at the Online Money Awards. Richard shares super-useful insights for beginners — from why keeping all your money in cash can cost you over time, to how diversification works, and why compounding is such a powerful long-term force. In this episode: Why investing often beats cash over the long run The best tax-efficient accounts: ISA vs SIPP Should beginners buy funds, ETFs, or shares? How diversification really works (and what mistakes to avoid) The power of compound interest Hands-off investing options for people who don’t want to stock-pick What Interactive Investor offers for new, early-stage investors If you're just starting your investment journey — or thinking about taking your first step — this episode gives you the confidence and clarity you need. 👉 Listen, follow and share if you enjoy the show 👉 Sign up for our free weekly investing newsletter at www.thearmchairtrader.com/newsletter 👉 Check out more resources at www.ii.co.uk Listen on: Spotify - https://open.spotify.com/show/2vfaIsYhqcRejpjWNqYF6f Apple Podcasts - https://podcasts.apple.com/gb/podcast/the-armchair-trader-podcast/id1454640070 Amazon - https://music.amazon.co.uk/podcasts/68a66097-24d8-403e-a86f-70fab0d2d686/The-Armchair-Trader-Podcast SoundCloud - https://soundcloud.com/armchairtrader/ Follow us: BlueSky - https://bsky.app/profile/thearmchairtrader.com Linkedin - https://www.linkedin.com/company/10429893 Instagram - https://www.instagram.com/armchairtrader Facebook - https://www.facebook.com/TheArmchairTrader 00:00 Introduction to Interactive Investors 02:37 Why should people invest? 04:02 Tax-efficient structures 06:05 Do people tend to buy just stocks, just funds or a mix? 08:42 Investing in what you know 09:18 What help do ii provide to new investors? 10:28 Diversifying your investments 12:35 Having to part with winners 13:53 Compounding 14:59 How often to check your portfolio 16:24 Don't want to make the decisions yourself? 17:33 Find out more about Interactive Investor at ii.co.uk