Best Stocks and Shares ISAs

Best low cost ISA provider: InvestEngine

If you are looking for a low-cost, simple way to invest, then look no further than InvestEngine. Here, you can invest in a choice of 500+ Exchange Traded Funds for as little as £1.

Exchange Traded Funds (ETFs) are actually a lot simpler than they sound. They are merely a mix of assets, including commodities and shares, that aim to track the performance of a stock market. They make investing a breeze and are diversified, which can help reduce your risk.

What I like about the InvestEngine Stocks and Shares ISA

With no setup fees or ISA fees to contend with, InvestEngine is one of the cheapest ways to invest in the stock market via a Stocks and Shares ISA. At InvestEngine, you can build your own portfolio or leave it to their experts for a more hands-off approach.

The InvestEngine Stocks and Shares ISA also comes with some great automation tools, including Auto Invest and Smart Portfolio top-ups so you can sit back and relax while your money is put to work for you.

Fees: 0.25% platform fee for managed portfolios, £0 DIY portfolio

Minimum balance: £100

Products available: S&S ISA, Personal Account, Business Account

Pros

• Lowest cost platform available
• Excellent customer service
• Suitable for all levels of experience

Cons

• No direct share dealing
• No SIPP product
• No ethical investment options

With investment, your capital is at risk. This could mean the value of your investments goes down as well as up.

Best commission-free* ISA provider: Freetrade

When you open an account at Freetrade, and deposit at least £50, they give you a free share straight into your account.

The share you get will be worth between £10-£100 which is a nice way to top up your portfolio.

What I like about the Freetrade Stocks and Shares ISA

For DIY investors who like to pick and choose their own assets, Freetrade offers commission-free investing when you buy or sell stocks. There are over 6,000 stocks to choose from, which should be ample for most investors, and you can even access expensive stocks for just £2 with their fractional shares.

It’s important to point out that you will need to pay a monthly fee to access the Stocks and Shares ISA at Freetrade, which, at a minimum, comes in at £4.99 (soon to be increased to £5.99). This makes this a better option for DIY investors who like to frequently buy and sell their own investments, and for those who have a sizable portfolio.

Fees: Commission-free trading on all stocks, shares, and ETFs; £4.99 for the standard plan that includes the Stocks and Shares ISA.

Minimum balance: £0

Products available: General Investing Account, Stocks and Shares ISA, SIPP, Freetrade Plus

Pros

• Zero commission fee
• Free share for new accounts
• Very beginner-friendly interface

Cons

• $3 per month ISA fee
• Only provides access to US and UK shares
• Limited research is available

When you invest your capital is at risk, the value of your investments can go down as well as up and you may get back less than what you invest. Eligibility to invest into an ISA and the value of tax savings depends on personal circumstances and all tax rules may change. Other charges may apply. ISA Promotion free share terms and conditions apply.

Best flexible stocks and shares ISA provider: CMC Invest

CMC Invest is a reasonably new investment platform that I found to be very suitable for beginners and mid-level investors. They have a range of ETFs that provide an easy way to create a diversified portfolio, in addition to US and UK shares.

CMC is constantly expanding its product portfolio, with mutual funds and a SIPP in the pipeline.

What I like about the CMC Invest Flexible Stocks and Shares ISA

This is a flexible ISA, which you won’t find often. This doesn’t mean the CMC Invest ISA can touch its toes; much better than that, it means you can deposit and withdraw from your ISA without affecting your ISA allowance. This gives you the flexibility to access your ISA money when you need it.

The other thing I like about the CMC Invest Flexible Stocks and Shares ISA is the transfer service they offer. Simply fill out the form within your app, and they will do all the legwork for you. More information on the transfer process as well as the CMC Invest transfer bonus is available on their website.

You will pay £10 a month for the ISA, which is slightly higher than the industry average; however, this includes a multicurrency USD wallet and mid-cap UK shares. New customers upgrading to this Plus Plan will get their first 3 months free (T&Cs apply).

Fees: £0 for GIA and £10 per month for ISA

Minimum balance: £0

Products available: General Investment Account, Flexible Stocks and Shares ISA

Pros

• Easy to use
• Very low-cost

Cons

• Limited range of products
• £10 per month for a Flexible Stocks and Shares ISA

Capital at risk.

Best ISA for interest: Interactive Brokers

Interactive Brokers is well known as a low-cost broker that offers a wide range of tradable assets from global markets. These are accessible from a range of five different platforms, each suited to different levels of experience.

This highly tailored approach, with its advanced research platform and risk analysis tools, as well as technical research news, advanced charting, and 20 order types, makes for the ideal place for active traders to save into an ISA.

What I like about the Interactive Brokers Stocks and Shares ISA

Interactive Brokers successfully stands out from the crowd of ISA providers by offering up to USD 4.85% interest on instantly available cash balances. In addition, there are no custody or transfer fees, and ISA holders can enjoy low commissions on all trades (£3 per trade for UK and European stocks).

There are also fractional shares available here and powerful trading tools such as GlobalAnalyst to identify opportunities. Traders and investors can easily create a globally diversified portfolio either on desktop, web, or mobile app.

Fees: £3 per trade for Western European stocks

Minimum balance: £0

Products available: S&S ISA, Personal Account, SIPP

Pros

• Extensive range of assets
• Interest available
• Low cost for high-volume traders

Cons

• Poor level of customer service
• Hidden fees on the IBKR Pro Plan

Capital at risk.

Best done for you ISA with access to human experts: Nutmeg

Nutmeg is an established robo advisor in the UK, offering security in their size and longevity in an otherwise saturated marketplace. They offer a range of pre-made, fully managed portfolios that can be matched to your level of risk.

What I like about the Nutmeg Stocks and Shares ISA

In addition to their excellent range of accounts is the Stocks and Shares ISA, which provides access to Nutmeg’s great service and choice of portfolios and can be easily managed from their easy-to-use mobile app.

For those that already have a Stocks and Shares ISA with another provider, the Nutmeg experts will help you understand how your current provider compares to Nutmeg, so you can be sure that this is the best move for your portfolio.

Fees: 0.25%–0.75% annual management fee plus an average 0.2% fund management fee.

Accounts: Stocks and Shares ISA, Junior ISA, Lifetime ISA, General Investment Account, Pension account

Features: Smart Alpha Portfolios, socially responsible portfolios, fixed allocation portfolios, fully managed portfolios

Pros

• Leading UK Robo Advisor
• Good selection of portfolios
• Excellent customer service

Cons

• Fees can work out higher than other investment platforms
• Minimum investment contributions

Approved by Nutmeg 22/03/23

As with all investing, your capital is at risk. Tax treatments depend on your individual circumstances and may change in the future. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest.

Best ISA for beginners and savers: Moneybox

Moneybox has managed to develop a really user-friendly app that takes all the complexities out of saving and investing, even for those who historically struggle in these areas. The round-up feature here can help drip-feed money into either investments or one of Moneybox’s five savings accounts, helping to build a nest egg with minimal effort on your part.

What I like about the Moneybox Stocks and Shares ISA

Moneybox has intentionally made investing as simple as possible, meaning even those with no knowledge of investing can confidently get started. Downloading the app and opening an account can be done in minutes, and beginners can then make use of the three Starting Options on offer or, alternatively, choose to customise their allocations with a range of tracker funds and US stocks.

One of the big advantages of this Stocks and Shares ISA is the 3.25% AER (variable) that you can earn on any uninvested cash you have in your Moneybox account.

Fees: £1 subscription fee for non-pension accounts, 0.45% annual platform fee, 0.12% to 0.58% fund costs

Minimum balance: £1

Products available: General Investment Account, Stocks and Shares ISA, Junior ISA, Personal Pension, range of savings accounts

Pros

• Great for beginners
• Quick and easy to set up
• Auto saving capabilities

Cons

• Limited choice of investment products
• Fees can work out higher than other options

As with any investment the value can go down as well as up. Past performance is no indicator of future performance. The tax treatment of ISAs depends on your individual circumstances and may be subject to change in the future.

Best ISA for DIY investors: interactive investor

If you are a DIY investor who plans to build a diversified portfolio from a range of individual stocks and funds, then interactive investor is the best platform to meet your needs.

Here, you can access more than 40,000 UK and international investment options, and the trading app provides plenty of functionality for managing your portfolio.

What I like about the interactive investor Stocks and Shares ISA

The cost of the interactive investor Stocks and Shares ISA comes in at £4.99 a month, which may seem a lot at first glance. Still, in reality, this is much more cost-effective for larger portfolios than a percentage fee such as you might find at another platform.

interactive investor also provides a regular investing service where you can commit to as little as £25 a month. This can be an excellent way to drip-feed your money into the stock market and average out the price you pay for your investments.

Fees: £5.99 per trade, annual custody fee starting at £4.99, £40 bonds fee

Minimum balance: £0

Products available: S&S ISA, Junior cash ISA, Junior stocks and shares ISA, Self-invested personal pension, company account, cash savings

Pros

• Wide range of financial instruments
• Excellent account options
• One free trade per month
• Free, regular investing

Cons

• Expensive for small investment pots

Important information - investment value can go up or down and you could get back less than you invest. If you're in any doubt about the suitability of a Stocks & Shares ISA, you should seek independent financial advice. The tax treatment of this product depends on your individual circumstances and may change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.

Best ISA with free advice: Bestinvest

Bestinvest is rare in that it offers users free coaching sessions with human financial planners. These 45-minute sessions take place over the phone or online and aim to identify your financial goals, help you with some of the decisions surrounding your investments, and come up with an investment strategy to help you realise your financial goals.

What I like about the Bestinvest Stocks and Shares ISA

Apart from the outstanding addition of financial planners, the Bestinvest Stocks and Shares ISA is worth considering for its excellent value. Whilst they do charge a percentage fee, those with larger portfolios need not be deterred, as the tiered annual account fees ensure all costs are kept to a minimum.

At Bestinvest, you also have the freedom to invest in a way that suits your knowledge and style, with both pick your own investments and a good selection of ready-made portfolios to choose from.

Fees: Tiered service fees of 0.2% or less a year, no set-up fees and share dealing for just £4.95 per trade

Minimum Balance: £50

Products available: Stocks and Shares ISA, Junior Stocks and Shares ISA, Investment Account, SIPP

Pros

• Good customer service
• Transfer fees covered by BestInvest

Cons

• Lack of tools for share dealing
• Lack of fee transparency

Capital at risk.

Best ISA for frequent traders: Saxo Markets

Saxo Markets has a great range of platforms, designed to suit all levels of experience, from which to trade over 11,000 ISA eligible stocks and shares. The tiered fee structure here means that high-volume traders can enjoy low transaction fees.

It’s important to note that Saxo is not a low-cost platform, but rather a high-end broker that offers tools and features to enhance your trading experience.

What I like about the Saxo Markets Stocks and Shares ISA

When you trade stocks via the Saxo Markets ISA, you open up access to a wealth of features and tools to help you make informed decisions and gain inspiration. This includes quality research, live market updates, in-depth macro analysis, and impactful insights, all available from the trading platform.

Saxo doesn’t charge any entry or exit fees, and it’s free to transfer an existing ISA to their platform.

Products available: Saxo Account, Joint Account, ISA, SIPP, Trust Account, Corporate Account, Professional Account

Pros

• User friendly platform
• Extensive product portfolio
• Up to date research facilities

Cons

• Relatively high fees for bonds, options, and futures
• No 24/7 support

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs, or any of our other products work, and whether you can afford to take the high risk of losing your money. The value of your investments can go down as well as up. Losses can exceed deposits on some margin products. Professional clients can lose more than they deposit. All trading carries risk.

Best ISA for frequent trading: AJ Bell

If you think you might trade more than 10 times a month, then this can work out as a really cost-effective solution for those with a modest portfolio.

AJ Bell has an excellent platform that is easy to use and fully functional, with access to a good range of assets and a selection of ready-made funds.

What I like about the AJ Bell Stocks and Shares ISA

AJ Bell is a well-established brand in the UK and is listed on the FTSE 250, providing you with peace of mind that your investments are always in safe hands.

The account management fee of 0.25% can work out really cost-effective for smaller portfolios, although if you have amassed a large portfolio, you may want to find a platform with a flat fee.

Fees: £5.00 per month for the first nine trades each month

Minimum balance: £0

Products available: Dealing Account, S&S ISA, SIPP, Junior Stocks and Shares ISA, Junior Dealing Account, Junior SIPP

Pros

• Quick and seamless account opening process
• Easy to use platform
• Excellent customer service

Cons

• Can work out expensive
• 1% exchange fee on overseas shares

Remember that investments go up and down in value, and you could lose money as well as make it. How you’re taxed will depend on your circumstances, and the rules can change.