Insights

Investing is most powerful when you give it time. At InvestEngine, we focus on long‑term investing‑ not trying to time the market or chase short‑term gains. 

Investing vs saving

If you need access to your money in the next year or two, a savings account might be more appropriate. But if you’re thinking in terms of 3+ years, investing could be a better fit. The longer you stay invested, the better.*

That’s because the longer your money is invested, the more time it has to*:

• Grow through market returns
• Recover from short‑term dips
• Benefit from the power of compounding

*This is not guaranteed and past performance is not indicative of future return

A minimum of 3 – 5 years

While there’s no hard rule, many investors aim to stay invested for at least 3 – 5 years. That gives your money time to ride out market ups and downs and grow steadily over time.

If you can invest for 10, 20, or even 30 years, your investments have the potential to grow further, and using tax‑efficient accounts like ISAs and SIPPs, can support you growing your wealth (read more on Tax‑Free Investing here). It’s important to note this is dependent on personal circumstances, your risk appetite and financial goals.

Your capital may go up and down when investing.

What if I need my money sooner?

You can withdraw your money from InvestEngine at any time, your money is never locked in. But selling your investments during a market dip might mean taking a loss.

It’s always worth thinking about your time horizon and financial goals before investing. You can always chat these through with a financial advisor if you’d like additional support.

Building confidence for the long haul

You don’t need to be an expert to invest for the long term. Our DIY Portfolios give you full control, while our Managed Portfolios do the work for you‑ all using low‑cost, diversified ETFs.

Need more help deciding?
Check out Passive vs Active Investing to learn more about our approach and how it might fit with your investing style.

One of the first questions many investors ask is: should I try to beat the market, or simply track it? This is the difference between active and passive investing.

What is passive investing?

Passive investing is about tracking the market, not trying to outsmart it. You invest in funds (like ETFs) that aim to match the performance of an index, such as the FTSE 100 or S&P 500.

It’s a long‑term, low‑cost approach that doesn’t rely on picking winners or reacting to market swings.

What is active investing?

Active investing means trying to beat the market, often by picking individual shares or timing when to buy and sell. Active fund managers charge higher fees for their research and decision‑making, but they don’t always outperform the market.

Some investors enjoy being more hands‑on, but this style can be riskier, more time‑consuming, and more expensive.

Why we focus on passive

At InvestEngine, we believe simplicity and low costs win in the long run. That’s why we use low‑cost ETFs in all our Managed Portfolios.

• Lower fees mean more of your money stays invested
• Diversification helps spread risk across many investments
• Evidence‑backed strategy: Over time, passive investing has often outperformed more expensive active funds

Is passive investing right for me?

If you’re looking for a simple, low‑maintenance approach that gives you access to global markets, passive investing may be a great fit.

It also aligns well with a long‑term investment strategy, see our article on How long should I invest for? to understand why time in the market matters more than timing the market.

Want to get started?
Explore our full range of ETFs or read about Tax‑Free Investing to learn how ISAs and SIPPs can help you keep more of what you earn.

At InvestEngine, we process trades once per day, a choice that reflects our focus on long‑term investing and cost efficiency, rather than short‑term market movements. While some platforms offer instant trades, we take a different approach designed to benefit our clients over time.

Why we do it

Trading once per day helps us:

• Keep investing commission‑free
• Reduce unnecessary short‑term trading
• Execute orders fairly by grouping all trades and placing them at the best available market price
• Reduce your trading costs by minimising the number of individual trades and securing better pricing through economies of scale.

It’s a system that suits long‑term investors who care more about strategy and consistency than day‑to‑day price changes.

When do trades happen?

• Cut‑off time: Orders placed before 2pm (UK time) on a working day are included in that day’s trade cycle.
• Execution window: Trades are placed in the afternoon, once markets open in the US (to align with the New York Stock Exchange).
• AutoInvest orders: Created daily at 12 noon, ready for inclusion in that day’s trades.

Whether you’re using a DIY Portfolio or a Managed Portfolio or LifePlan, this schedule applies to all orders.

Why it works for long‑term investors

This trading model encourages a patient, disciplined approach ‑ something we believe leads to better outcomes. If you’re investing for 3+ years, as we discuss in ‘How long should I invest for?’, the exact time your trade goes through matters less than staying invested.

We also make it easy to:

• Automate your top‑ups with a Savings Plan
  Set up flexible or monthly payments using Open Banking or Direct Debit, so you never forget to add money to your portfolio.
• Keep your portfolio on track with AutoInvest
  Automatically invest new cash based on your chosen ETF weightings, no need to place manual orders.

We know that when you request a withdrawal, you want to know exactly when the money will reach your bank account. At InvestEngine, we aim to make the process simple, transparent, and timely, there are a few steps involved which can affect how long it takes.

The typical timeline

Here’s what happens after you request a withdrawal:

1. Selling your investments
   If you’re withdrawing from an invested portfolio, we’ll sell your ETFs during our next daily trading cycle (you can read more about when we trade here).
   • If your request is received before 2pm (UK time) on a working day, your investments will usually be sold that same day.
   • If it’s after 2pm, the sale will happen the next working day.
2. Settlement period
   Once sold, ETF trades take 2 working days to settle. This is standard across most investment platforms.
3. Transfer to your bank account
   Once the sale has settled you can request the withdrawal and we’ll send the funds to your nominated UK bank account. This usually takes 1 additional working day, depending on your bank.

We aim to handle everything as efficiently as possible, but we also prioritise doing things properly and securely.

Total time: typically 3 – 4 working days

So, from the time of your request to the time funds land in your account, it typically takes:

• 3 working days if you submit your request early on a weekday
• 4 working days if it’s after the 2pm cut‑off

What if my portfolio has uninvested cash?

If your withdrawal is coming from uninvested cash (not invested in ETFs), there’s no need to sell any assets, so we can process your withdrawal more quickly, usually within 1 working day.

Read more about managing cash in your account here

Things to keep in mind

• Withdrawals are only made to your linked and nominated UK bank account
• You can request a withdrawal at any time through the app or web dashboard
• We don’t charge for withdrawals

Need to withdraw from an ISA or SIPP?
Check out our guides to ISA withdrawals and SIPP access for more detail‑ each account type has its own rules and tax implications.

One of the most powerful ways to grow your wealth over the long term is by investing tax‑efficiently. This is why InvestEngine offers both ISAs and SIPPs ‑ two accounts which give you valuable tax benefits when you invest.

Here’s how they work, and how they could help you keep more of your returns.

What is an ISA?

An ISA (Individual Savings Account) allows you to invest without paying any capital gains tax or income tax on your returns.

• You can invest up to £20,000 per tax year (2025/26 allowance)
• You won’t pay tax on any profits, interest, or dividends
• You can withdraw money at any time, with no penalties
• You can transfer ISAs to InvestEngine from another provider

Our Stocks & Shares ISA is free to use. You can choose between a DIY Portfolio or a Managed Portfolio and LifePlans, depending on how hands‑on you want to be.

What is a SIPP?

A SIPP (Self‑Invested Personal Pension) is a long‑term savings account designed for retirement. It’s ideal for building your pension in a flexible, tax‑efficient way.

• You’ll receive tax relief on contributions (up to certain limits depending on personal circumstances)
• Investments grow free from capital gains and income tax
• You can start accessing your pension from age 55 (rising to 57 on 6th April 2028)

InvestEngine’s SIPP gives you full control, with the same low‑cost ETF access and commission‑free investing as our other account types.

Not sure how long to invest for? Read more here

ISA or SIPP‑ or both?

You don’t have to choose one or the other, many investors use both:

ISAs offer tax‑free growth and withdrawals, and you can access your money at any time without penalties. This makes them ideal for medium‑ to long‑term goals where flexibility is key.

SIPPs (Self‑Invested Personal Pensions), on the other hand, are designed specifically for retirement saving. They offer generous tax relief on contributions, which can significantly boost your pension pot over time. However, your money is locked in until at least age 55 (rising to 57 on 6th April 2028), and withdrawals are subject to pension rules.

In short: if you want access and flexibility, an ISA may be better., if you’re focused on maximising retirement savings and tax relief, a SIPP could be the better choice. But you don’t have to choose one or the other, you can have both at the same time, and can hold multiple portfolios across both account types, tailored to different needs.

Key benefits of tax‑free investing

• Keep more of your gains
• Avoid surprise tax bills
• Stay focused on long‑term growth

And because we don’t charge account fees for DIY ISAs or SIPPs, more of your money stays invested and working for you.

Want to get started?
Explore our ISA and SIPP pages for full details or check our articles on ISA transfers and pension contributions.
 

When investing your capital is at risk, tax treatment dependent on individual circumstances

If your company is a UK‑registered private limited company, you can invest through InvestEngine’s Business Account. It’s a cost‑effective and tax‑efficient way to put surplus company funds to work, particularly if your business is looking for long‑term growth rather than short‑term liquidity.

This article explains how business investing works on our platform, and why it might suit your company.

Why invest through a limited company?

Many businesses accumulate surplus capital‑ often sitting idle in low‑interest accounts. Investing through a Business Account allows you to:

• Target long‑term growth using diversified, low‑cost ETFs
• Invest profits directly from the business, deferring tax by keeping the cash inside the company rather than paying it out
• If you’ve already maxed out your annual pension allowance, investing through your business can be a tax‑efficient alternative, as excess pension contributions are taxed at your income tax rate
• Take advantage of fractional investing and full portfolio control (DIY)
• Use a Managed Portfolio if you prefer a hands‑off approach
• Maintain visibility and control over your company’s investments via your online dashboard

Learn more about our options on the InvestEngine Business page

Tax considerations

• Business investments are subject to corporation tax on capital gains and dividends (rather than personal capital gains tax)
• Tax treatment will depend on your company’s structure, activity, and accounting method
• We strongly recommend speaking to a qualified accountant or tax adviser before investing through your company

Regulatory Requirements

InvestEngine is authorised and regulated by the Financial Conduct Authority (FCA). As part of our due diligence, we require:

• Verification of company status
• Identification of directors and beneficial owners
• Documentation to confirm the company’s UK business bank account

For full details, see Required Documentation for Business Accounts.

What Can My Company Invest In?

Your company can invest in:

• A wide range of Exchange‑Traded Funds (ETFs)
• Managed or DIY strategies, depending on your preferences

Ready to Start?

If you’re a director of a UK limited company, you can start your application here:
Open a Business Account

Capital at risk. Your investments can go up and down.