When it comes to choosing the perfect platform for your investments, making the right decision can not only save you money but also provide you with better functionality and a wider range of investment options. With that in mind, Telegraph Money has compiled a cheat sheet to help you navigate the available Isas based on your investment preferences and budget.
Best platforms for Isas under £50,000
If you’re looking for a platform that offers a comprehensive selection of investments, including funds, investment trusts, passive funds like trackers and exchange traded funds (ETFs), as well as individual stocks, you’ll need to opt for one of the larger platforms that provide a diverse range of options. According to Lang Cat analysis for Telegraph Money, Vanguard offers great value, with an estimated annual cost of only £23 for a modest £15,000 Isa portfolio and four trades per year. Vanguard charges a platform fee of 0.15% capped at £375, with no fees for buying and selling funds, and a maximum portfolio limit of £250,000. However, it’s worth noting that you can only buy Vanguard’s own funds on their platform.
Another platform that offers good value is iWeb, which charges a £100 account opening fee. However, this fee can be refunded if you transfer in from an Isa with another platform worth at least £5,000. With a £5 per trade charge, a portfolio on iWeb would cost just £20 annually based on our assumptions. If you’re not transferring an account, an AJ Bell YouInvest portfolio of £15,000 would cost £44 per year, including a platform fee of 0.25% and £1.50 for buying and selling funds or shares. According to Steve Nelson, insight director at Lang Cat, iWeb is a no-frills service that offers excellent value for money for those who know what they’re doing. However, if you’re looking for a more comprehensive service, you may consider paying a little more for a platform like AJ Bell.
Best platforms for Isas over £50,000
As a general rule, the pricing structures for Isa portfolios over £50,000 tend to be more expensive compared to the lower brackets. However, there are still some brands that offer good value in this range. Halifax Share Dealing, iWeb, and Interactive Investor are platforms with compelling fees in this category. Halifax charges a fixed fee of £36 per year, along with trading charges of £9.50. This means that regardless of the portfolio size, the costs remain the same (assuming four trades per year). However, if you buy or sell more frequently than four times a year, it may be worth considering a platform with lower costs or free trades. Interactive Investor, for example, has charges of £9.99 per month, which includes free regular investing and one ad-hoc monthly trade, resulting in annual charges of £120. Once again, iWeb’s offering is attractive with a cost of £100 for the first year and £5 per trade.
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