The cheapest Stocks and Shares ISA providers
AJ Bell, Interactive Investor and Trading 212 have been selected as the best Stocks and Shares ISA providers on the market, due to their wide range of investment options and low platform fees.
According to Kepler Trust Intelligence, AJ Bell is the best ‘all-rounder’ ISA provider, even though competitor Trading 212 took the label of the cheapest provider.
Interactive Investor came second in the ranking of the cheapest providers*.
Aberdeen’s interactive investor also topped a ranking of the Self-Invested Personal Pension (SIPP)* providers in the UK. The platform is currently offering up to £3,000 in cashback to investors who switch platforms before the end of the tax year on 5 April*.
Cheapest Stocks and Shares ISA providers
Trading 212 charges no trading or platform fees and pays one of the highest interest rates on uninvested cash.
The ISA can be managed online or through the Trading 212 app. Investors can choose between exchange-traded funds (ETFs) or shares.
The only fee paid on a Trading 212 Invest & ISA comes when making trades in an overseas currency.
However, Kepler described it as a “no-frills option” due to its limited research and online chat-only support.
“Overall, Trading 212 is likely to appeal to frequent traders or investors looking for a basic, low-cost provider,” Jo Groves, investment specialist at Kepler Partners, said.
Meanwhile, AJ Bell charges a 0.25 per cent platform fee on the first £250,000, 0.1 per cent on the next £250,000, and no fee over £500,000.
There is a separate platform fee of 0.25 per cent for share-based investments (including investment trusts and ETFs) which is capped at £3.50 per month.
For trading fees, it charges £5 for UK and international shares but only £1.50 for trading in funds. Reduced traders receive a reduced fee of £3.50 on shares if they trade 10 or more times in the previous month.
If you want the most investment options for your ISA, it’s best to look at the largest stockbrokers – AJ Bell, Hargreaves Lansdown and Interactive Investor.
AJ Bell offers more than 15,000 shares, 4,000 funds, 3,500 ETFs, and more than 400 investment trusts and covers 24 markets worldwide.
Hargreaves Lansdown has more than 8,500 shares, 4,000 funds, 1,400 ETFs and 400 investment trusts.
While Hargreaves Lansdown’s fees make it one of the more expensive platforms, it also offers up to £3,000 cashback on eligible products before the end of the tax year*.
Meanwhile, Interactive Investor has over 3,000 funds, 1,000 ETFs and 600 investment trusts.
Those with a portfolio less than £50,000 pay £4.99 per month, with a further £5 per month to add a SIPP, while those with more pay £11.99 a month with an additional £10 per month to add a SIPP.
Fees charged by Stocks and Shares ISA providers
| Portfolio value | £20,000 | £100,000 | £250,000 |
| Trading 212 | £0 | £0 | £0 |
| Interactive Investor* | £108 | £192 | £192 |
| AJ Bell | £89 | £206 | £394 |
| Charles Stanley Direct | £60 | £300 | £600 |
| Fidelity | £135 | £310 | £385 |
| Bestinvest | £110 | £430 | £1,030 |
| Hargreaves Lansdown* | £162 | £342 | £679 |