TQ Invest is a specialist broker providing low cost investments (such as ISAs)
to people who are happy to make their own investment decisions and don’t want
to pay for the advice of a financial adviser.
This means that you must obtain full details of the products and look
at your own circumstances, objectives and attitude to risk before
To help, TQ Invest offers a variety of research tools to help you
understand the investments you are making, and has a UK call centre on
hand to help with any questions you may have.
Equity ISAs - The majority of equity ISAs use collective investment funds,
such as Unit Trusts or Open Ended Investment Companies (OEICs),
rather than shares in individual companies. An equity ISA (often referred to as a stocks and
shares ISA) provides a tax-efficient way to invest in a wide range of assets, normally stock
market related, with the potential for higher returns than cash.
Unit Trusts and OEICs - Providing access to over 1,000 funds from the UK's
leading fund managers.
Personal Pensions - Offer an easy way to build up your retirement savings.
Stakeholder Pensions - Ideal if you want to keep your pension arrangements simple.
Before starting to compare investments it’s worth having a long think about whether investing
is the right thing for you. Whilst investments can outperform deposit
savings accounts for returns, they come with risks attached –
risks that you should understand before proceeding.
Investing should always be considered as a longer term undertaking – anything from 5 years
upwards. So the money you invest must be cash that you don’t need to access for a fair while.
If you do need to get at your money you could face hefty penalties. This means that cashing in an
investment in the early years could result in you coming out with less money than you originally
The other point to make is that a longer term investment has more chance to grow because it
can even out short term fluctuations in investment performance. You would also want to
avoid cashing in an investment when the market has fallen, as this could result in you
making a loss.
When compared to a deposit savings account, the potential returns on an investment can be far
But the flipside to the potential reward is the risk of losing some of the money you
initially invested, if your investments don’t perform so well.
A savings account works in a different way…
When you put money in a deposit savings account the bank or
building society invests or “lends” your money to other people who need to borrow. Part of the
interest payments from the borrower are passed on to you, as interest on your savings. If the
people borrowing your money can’t afford to repay, the bank or building society absorbs the loss
and doesn’t pass it on to you.
So the essential difference between a deposit savings account and an investment is this:
Under FSCS investment protection the compensation limit on investments is £50,000 which are
categorised separately from any compensation that may apply in respect of deposits that a
customer may hold.
"FSCS provides protection if an authorised investment firm is unable to pay claims against
it. For example:
Investments covered include: Stocks and shares; unit trusts; futures and options; personal
pension plans and long-term investments such as mortgage endowments.
But it should be noted that the FSCS investment protection will not protect from poor
performance of the underlying investment fund." Reference:
Whether this risk is worth the potential reward depends on how you feel. Would you be happy
to lose money on your investment for the chance to earn more? Generally speaking, the greater
the potential reward, the greater the risk you are taking.