This guide to the finest investing accounts and Isas for stocks and shares is updated frequently.
Specialist journalists at This are Money have independently selected the products highlighted in this article. This is Money will earn an affiliate commission if you open an account using asterisk-marked links. We will not permit this to compromise our editorial independence.
The rise of do-it-yourself investing has ushered in a revolution in purchasing stocks, investment trusts, and mutual funds, allowing individuals to make substantial savings through internet brokers.
There is no need for a stockbroker or financial advisor to invest in stocks and shares Isa, self-invested personal pension, or regular trading account online and start putting your money to work.
That means you can invest globally from the comfort of your computer or mobile device, but finding the proper DIY platform or app is crucial, and the variety of options has left many investors bewildered.
We explain how to choose a do-it-yourself investment platform to invest in the entire spectrum of alternatives, including stocks, mutual funds, investment trusts, ETFs, and direct retail corporate bonds.
Why are Isas and DIY investing platforms important?
Historically, investing needed a stockbroker or financial advisor and the willingness to pay a substantial commission.
Now equipped with a computer – or even a smartphone – investors may use a do-it-yourself investment platform, an online broker, and the abundance of research available to them to perhaps create their fortune.
The correct Isa wrapper or investment account can increase your investments by assisting you in building a portfolio and lowering the amount of your hard-earned earnings gobbled up by fees.
DIY investing platforms provide a location to buy, sell, and hold all of your investments, as well as a tax-efficient wrapper if you choose to invest in an Isa.
When deciding which is best for you, it is essential to consider the service offered, as well as any administration fees, transaction fees, and any extra costs.
We emphasize Isa versus non-Isa fees but don’t forget that investing in an Isa makes sense because it should shield your investments from as much tax as possible.
We’ve broken down the expenses of some of the best (and cheapest) do-it-yourself investing platforms, including fees for buying stocks, funds, investment trusts, and ETFs. Before making a decision, we recommend conducting your study and considering the criteria listed below.
How do we select the top stocks and shares DIY investment platforms and Isas
We have prioritized two essential factors: price and quality. This is not an exhaustive list of the cheapest platforms; rather, these are the ones that stand out and compete fiercely on price.
In most instances, all discount beginning fund expenses are reduced to zero. Some funds may still incur an initial fee; platforms should provide a list for you to review.
We have selected DIY Isa platforms that are suitable for a variety of investors, with a concentration on those that offer a variety of investment options, not simply funds. Some investors will find one superior to the other, and you should choose based on your needs. Remember that there are many alternatives available.
Hargreaves Lansdown – Vantage Individual Savings Account
Hargreaves Lansdown is the industry leader in DIY investment. The website is loaded with information from its advisors and analysts, the data on its shares and funds is exhaustive, and there is a very useful app.
Investors pay a 0.45% fee on their total fund investments up to £250,000, 0.25% on investments between £1,000,000 and $2,000,000, and nothing above $2,000,000. Additionally, shares and investment trusts pay a 0.45% fee on the total holding, a maximum of £45.
Hargreaves has secured a reduction in fund managers’ yearly management fees.
Fund transactions are free. Each share, investment trust, corporate bond, and ETF transaction costs £11.95. If you trade more than 10 times per month, your transaction fees decrease. Regular monthly share and investment trust investing costs £1.50, while dividend reinvestment costs 1%, with a minimum charge of £1 and a maximum of £10.
Hargreaves offers the highly influential Wealth 50, a variety of Master Portfolios, and the Portfolio+ service to make investing progressively simpler and less labor intensive.
Hargreaves Lansdown recently announced that it would eliminate departure fees and reduce expenses.
Standard non-Isa transactions: Hargreaves’ non-Isa Vantage account has the same fees as the standard account, except the fee for owning shares and trusts.
Whom does it benefit? Those in search of a service that is price-competitive but not the cheapest available. It comes with numerous features, such as an excellent mobile application and portfolios for simple investing.
Our tests found the Hargreaves platform to be user-friendly and intuitive, and its newly redesigned app to be excellent.
It provides access to investment trusts, ETFs, shares, and the corporate bond market, in addition to a proven, popular service that is heavily weighted towards funds. [Additional Hargeaves Lansdown information*]
Interactive Trader
Monthly pricing plans for Interactive Investor range from £9.99 to £19.99 per month.
Depending on your investment preferences, you can choose between three plans: Investor, which costs £9.99 per month, Funds Fan, which costs £13.99 per month, and Super Investor, which costs £19.99 per month.
Each plan includes a monthly trade credit of £7.99, with varying fees for buying and selling. The credit is valid for 90 days.
The Investor plan charges £7.99 per trade for UK shares, funds, and investment trusts, as well as US equities.
The same fees apply to investors who are fond of funds, although trading in funds and investment trusts costs £3.99 apiece.
The Super Investor plan charges £3.99 per trade for UK shares, funds, and investment trusts, and £4.99 each trade for US equities.
Other international shares transactions are priced at £19.99 for the Investor and Funds Fan plans and £9.99 for the Super Investor plan. All plans offer dividend reinvestment for 99 pence, and regular investment is now free.
All Sipp investors pay an additional £10 each month.
Whom does it benefit? Choose the regular option under Interactive Investor’s pricing structure and you’ll pay £119.88 annually and receive £95.88 in trading credits, which must be used within 90 days.
The cost of purchasing and selling UK equities at £7.99 is reasonable, albeit it is higher than that of several competitors. Investing regularly for free is a winner.
According to This is Money, Interactive Investor’s pricing structure makes it a leading contender among investment platforms. The service is excellent and the prices are reasonable.
Interactive Investor is a smart choice for investors with larger portfolios who would incur escalating percentage-based fees elsewhere. A person with £100,000 in assets with Interactive Investor would pay £119.88 per year, or just £24 if all trading credit was utilized. With a 0.45% yearly cost at Hargreaves Lansdown, they would pay £450.
Our testing reveals that II is simple to use, with handy features like Excel portfolio downloads, and a mobile application that has undergone significant development in recent years.
Fidelity.
Fidelity is one of the most well-known names in the investment industry, and its website is loaded with useful information, guides, market analysis, and videos.
This fee applies to both investment trusts and exchange-traded funds (ETFs) and share transactions.
The fee for holding investment funds is 0.35 percent up to £250,000, 0.20 percent above that, and 0% above £1 million.
However, the pricing structure differs slightly if you invest a tiny amount. Up to £7,500, Fidelity charges a flat £45 fee before the 0.35 percent rate is applied.
There are no fund transaction fees for purchasing or selling.
Whom does it benefit? Fidelity provides extremely beneficial service. It is one of the major players and offers model portfolios, investment decision-making tools, and a plethora of information.
Bestinvest.
Bestinvest has recently relaunched with a revamped website and updated offerings, which include free financial counseling sessions.
Isa and regular investors pay an annual levy of 0.40 percent on portfolios up to £250,000, 0.20 percent on portfolios between £250,000 and £500,000, and 0.1 percent on portfolios beyond £1 million. No additional fees are charged above $1 million.
Those who invest in its ready-made portfolios pay a lesser charge of 0.2% and then 0.1%.
Bestinvest has no transaction fees for mutual funds, but normal share and investment trust transactions cost a reasonable £4.95.
There are no reduced monthly investment fees for stocks and trusts, nor is dividend reinvestment inexpensive.
Bestinvest stands out because its skilled financial advisers give free financial counseling. One free session is available to non-customers, while customers receive limitless free financial counseling that may be scheduled online or over the phone at their convenience.
Financial coaching differs from financial advising in that planners cannot recommend certain items, but clients can pay a one-time charge for bite-sized assistance. A session on investing for your goals costs £295, while a portfolio health check costs £495.
In addition, the website now offers an online risk assessment questionnaire and is introducing digital goal planning tools, the first of which is a retirement planner.
Why invest using an Isa?
Investing in an Isa is one of the few tax-free alternatives available to us.
The annual Isa allowance for investors is presently £20,000.
Investing in an Isa is advantageous from a tax perspective, with the extra benefit of not having to file a tax return or report gains.
Gains accumulated in an Isa are exempt from capital gains tax. From 2022 to 2023, everyone has a CGT allowance of £12,300 per year, and many may believe they would never realize a profit from the sale of assets that exceeds this amount.
Those that invest consistently throughout time may one day be astonished by the value of their investments, thus it makes sense to hold them in a tax-free container.
In an Isa, income from investments is also treated tax-efficiently. The tax-free dividend allowance has been reduced from £5,000 to £2,000, and rates of 8.75% at the basic rate, 33.75% for higher rate taxpayers, and 39.35% for additional rate taxpayers apply above this threshold.
However, if you keep shares, investment trusts or funds in an Isa, dividend income is tax-free.
Putting your investments in a tax-free wrapper is a prudent strategy, even if you are nowhere near using up your £2,000 dividend allowance at the moment.
Isa investing also eliminates the need to report dividend income on a self-assessment form and the hassle of filing tax returns for capital gains.
In the past, investing in an Isa was not always profitable due to increased fees. In the majority of cases, charges are now identical to those of conventional investment, thus it makes sense to use an investing Isa.
