When you’re wondering which investment platform to use it’s likely that the cost is high up your list of things to consider. While it’s just one of several factors to think about – your decision will also be dictated by factors such as your objectives, how much you’re investing and the level of choice you need – platform fees can have a big impact on your investment growth over time.
So, here we pick out the 5 cheapest investment platforms for your £20,000 ISA, invested entirely in Exchange Traded Funds (ETFs), based on a search conducted using our free Compare+Invest comparison tool. We want you to choose the very best investment provider for your needs, because making the wrong decision now can cost you thousands of pounds in the long run.
Which provider to choose?
If you’re looking to start investing now, make sure you do some research before you leap. That’s where Compare+Invest comes in, as it can be really difficult comparing the service and costs of the 50+ online investment firms out there. Here, we look at the cheapest Do It Yourself (DIY) investment platforms, where you choose the investments and manage your choices on an ongoing basis (although most providers also offer ready-made solutions for those who want a helping hand).
Investment platforms charge a fee for their services on top of the cost of the fund itself. Remember that as the value of your investments rise, so too will your annual charges, unless you pick a fixed-fee platform like interactive investor. And of course, if you’re looking at investing a different amount, whether it’s for a financial goal or retirement, there are various free comparison tools to help you at Compare+Invest.
These comparisons are based on a £20,000 ISA account, invested in ETFs, with three trades a year, at an average trade value of £1,000.
First place: iWeb
iWeb is operated by Halifax Share Dealing, which is part of the Lloyds Banking Group. This DIY platform is a no-frills, low-cost way of share and fund dealing. It offers a share dealing account and a stocks and shares ISA. It doesn’t charge an annual platform fee or an account opening fee, which means accounts can now be opened for free. However, it doesn’t offer a mobile app.
The annual cost of a £20,000 ISA portfolio is £15 (dealing fees only).
Compare the Platform rating: 3/5. Click here to visit the iWeb profile.
Second place: Barclays Smart Investor
The Barclays direct-to-consumer proposition is very competitive for smaller investors, hence its strong showing here. The platform is integrated with its online banking platform, allowing banking customers to check on their investments when they log into its main banking services. Customers can open a general investment account, an ISA and a Sipp.
The annual cost of a £20,000 ISA portfolio is £18 (dealing fees only).
Compare the Platform rating: 3/5. Click here to visit the Barclays Smart Investor profile.
Third place: Saxo
Saxo offers three different trading platforms, all of which are available as app and web-based services: SaxoTraderGO, SaxoInvestor and SaxoTraderPRO. The latter is aimed at advanced traders, with SaxoTraderGO being the preferred platform for most customers and SaxoInvestor designed for less active traders who want to buy-and-hold investments.
The platforms stand out for their design, offering the look and feel of a professional stockbroking service with the proper support for an everyday investor.
Compare the Platform rating: 4/5. Click here to visit the Saxo profile.
Fourth place: AJBell
AJ Bell is one of the biggest and most fully featured investment platforms in the UK, with competitive charges across the board. It has worked hard on making investing accessible for all levels of investor, although you might find the site a little overwhelming at first.
The annual cost of a £20,000 ISA portfolio is £57 (£42 custody fees + £15 dealing fees).
Compare the Platform rating: 5/5. Click here to visit the AJ Bell profile.
Fifth place: Halifax
The Halifax Share Dealing is the Halifax (part of Lloyds Banking Group) DIY investment and share-dealing platform. It offers ISA, general investment accounts and pensions. This platform is available to banking customers only. For non-bank customers, it runs iWeb. The platform is relatively clunky and offers a limited range of tools and materials when compared to many of its peers.
The annual cost of a £20,000 ISA portfolio is £64.50 (£36 annual product fees + £28.50 dealing fees).
Compare the Platform rating: 3/5. Click here to visit the Halifax Share Dealing profile.
Photo by Rafael Ishkhanyan on Unsplash
