Always remember that investments can go down as well as up in value, so you could get back less than you put in. A rule of thumb is to hang on to your investments for at least five years to give them the best chance of providing the returns you want.
The cheapest Stocks and Shares ISAs in the UK are InvestEngine and Vanguard. Both platforms do not charge a dealing fee for buying and selling investments, so you only ever pay the platform fees and investment costs. Other fees may apply.
Scroll down for a detailed review of both platforms and to discover our top ten cheapest Stocks and Shares ISAs for buying, selling, and holding a wide variety of instruments, including stocks, shares, bonds, funds, ETFs, investment trusts, and other investment products.
In the comparison tile below, we’ve included a column that tells you if a Stocks and Shares ISA is a Do-It-Yourself (DIY) ISA, Ready-Made ISA or both. DIY ISAs give you the freedom to select the specific investments that make up your portfolio. Depending on the provider you choose, you can either select individual shares, bonds, funds, ETFs, and other investment products and build your portfolio yourself or choose from a range of managed and ready-made portfolios.
Ready-made ISAs, on the other hand, are a diverse mix of investments created by fund managers to help reduce the burden everyday investors face when choosing individual stocks, funds and other investments to build a diversified portfolio. With one ready-made portfolio, investors can access hundreds of assets such as stocks, bonds, ETFs, commodities and property.
We have also included a column which tells you if a Stocks and Shares ISA is flexible. If your Stocks and Shares ISA is flexible, you can withdraw money and deposit it back in the same tax year without losing your ISA allowance. For example, if you pay £20,000 into a flexible ISA, you can take it all out and pay it back in again within the same tax year. You cannot do this with a non-flexible ISA.
If you withdraw money from a non-flexible ISA, you will lose that portion of your allowance for the tax year. On the bright side, if you’ve cultivated the bad habit of constantly dipping into your savings, non-flexible ISAs can help you become more disciplined. This tax year, the ISA allowance is £20,000.
Here are the cheapest Stocks and Shares ISAs in the UK:
InvestEngine is a low-cost ETF-only investment platform that provides a choice of managed portfolios tailored to you and commission-free DIY investing to help you build long-term wealth. Users can invest in over 500 exchange-traded funds (ETFs) from leading global asset managers.
With InvestEngine, you can invest in two ways depending on your tolerance for risk and savviness as an investor: beginner investors or those who prefer a ready-made investment portfolio can select from one of the Managed Portfolios on offer, where the team of experts at InvestEngine will take care of the day-to-day investment decisions for you. These portfolios are a selection of ETFs based on your preferences and risk tolerance. Once you’ve selected one, you do not have to do anything else besides monitor the performance of your investments. Advanced or more confident investors can choose from 500+ commission-free ETFs and build their portfolios themselves. InvestEngine also offers fractional investing, which allows you to buy bits and pieces of an ETF with as little as £1. This enhances your ability to build a diversified portfolio even if you have a small amount of money to invest. With the DIY Portfolio, there are no platform fees. All InvestEngine portfolios are free of set-up fees, dealing fees, ISA fees or withdrawal fees.
InvestEngine stands out amongst its competitors as one of the cheapest Stocks and Shares ISAs in the UK because it charges no platform or management fees on its DIY Portfolio and just 0.25% a year on its Managed Portfolio. You can also start investing with as little as £100. InvestEngine’s suite of products includes a Stocks and Shares ISA, Personal Account and Business Account. The InvestEngine Stocks and Shares ISA is not flexible.
Capital at risk.
Vanguard is a low-cost investment platform with over 75 own-brand funds, including ETFs, active funds and index funds. Vanguard does not offer stocks and shares but provides a variety of ETFs for those interested in exchange-traded securities.
The Vanguard Stocks and Shares ISA allows you to build an investment portfolio in two ways depending on your investing savviness. If you are a beginner investor or someone who prefers ready-made investments, you can build your portfolio by selecting one of Vanguard’s ready-made investments, which give you access to thousands of bonds and shares in a single investment. Advanced or more confident investors can choose from over 75 individual Vanguard funds and ETFs and build their portfolios themselves.
To open a Vanguard Stocks and Shares ISA, you need at least £100 a month or a lump sum of £500. There is a yearly management fee of 0.15% (capped at £375) per year. Some of the funds on offer have separate charges, so please check these before investing. Vanguard’s suite of products includes a Stocks and Shares ISA, Junior ISA, General Account and SIPP. The Vanguard Stocks and Shares ISA is flexible.
Capital at risk.
Interactive Investor is a subsidiary of wealth management giant Abrdn and the second-largest investment platform in the UK. It is well known for its fixed charges (as opposed to percentage-based fees like most other investment platforms) and has been providing investment services and financial information since 1995.
If you choose to invest with Interactive Investor, you’ll gain access to over 40,000 investment options, including UK and overseas shares, funds, investment trusts, and ETFs. This is the second-widest choice of UK and international investments offered by an investment platform in the UK. You will also be able to access 17 global exchanges, including exchanges in North America, Europe and Asia Pacific. These include markets such as the FTSE 100, FTSE 250, FTSE All-Share, NASDAQ, Dow Jones and more. In addition to the exchanges above, Interactive Investor offers Japanese, Indian and Chinese shares in the form of ADRs (American Depositary Receipts).
Interactive Investor gives you a free trade every month, which you can use to buy or sell any investment. After that, trades usually cost £3.99. Interactive Investor also offers a free regular investing service that allows you to invest regularly without paying a trading fee each time. The site also has a lot of expert ideas, research and insights, which can be helpful when choosing investments. Interactive Investor’s services include a Trading Account, Stocks and Shares ISA, SIPP and Junior ISA. The Interactive Investor Stocks and Shares ISA is not flexible.
Capital at risk.
Moneybox is a UK investment app that allows you to invest in a range of tracker funds, exchange-traded funds (ETFs), exchange-traded commodities (ETCs) and US stocks. Moneybox offers two forms of investing depending on your investing savviness, investing strategy and attitude to risk. Beginner investors or those who prefer a ready-made portfolio can choose from the three ready-made portfolios on offer - Cautious (lower risk), Balanced (medium risk) and Adventurous (higher risk). Advanced or more confident investors can pick from the range of tracker funds, ETFs, ETCs and US stocks available and build their portfolios themselves.
The Moneybox app also empowers you to invest your spare change by rounding up your card transactions to the nearest pound and investing the difference on your behalf. For example, if you spend £2.30 on a snack, Moneybox will invest 70p for you. You can also instruct the app to make weekly or one-off deposits into your investment portfolio as it rounds up your spare change.
You can start investing with Moneybox with as little as £1. Moneybox offers commission-free trading on US stocks. However, fund management fees apply to other types of investments, ranging from 0.12% to 0.61% per annum. A currency conversion fee of 0.45% also applies to US stocks. Moneybox’s suite of products includes a Stocks and Shares ISA, Lifetime ISA, Junior ISA, Personal Pension, and General Investment Account. The Moneybox Stocks and Shares ISA is not flexible.
Capital at risk.
AJ Bell is one of the UK’s largest online investment platforms, and its mission is to make investing as easy as possible for anyone. The platform offers thousands of investment options for the DIY investor, including shares, funds, bonds, investment trusts, ETFs, ETCs, and warrants.
There are multiple ways to get started with AJ Bell, depending on your risk tolerance and investing savviness. Beginner investors or those who prefer a ready-made investment portfolio can get a little, or a lot, of help from AJ Bell’s specialists by selecting one of the investment ideas on offer. Investment ideas are diversified ready-made baskets of investments that you can select based on your personal preference and attitude to risk. There are eight total investment ideas, each built by a specialist team, and you can pick the right one for you depending on whether you are seeking to simply grow your money over time or receive an income whilst still growing your money. Expert investors can take advantage of the stock and fund screeners and complex instruments available on AJ Bell and build their portfolios themselves.
AJ Bell charges an annual platform fee ranging from 0.25% to 0%, depending on the size of your portfolio. Dealing fees for buying and selling investments online are £1.50 for funds and £9.95 for shares (reducing to £4.95 if there were 10 or more online share deals in the previous month). AJ Bell’s products include a Share Dealing Account, Stocks and Shares ISA, Junior Stocks and Shares ISA, Lifetime ISA, SIPP and Junior SIPP. The AJ Bell Stocks and Shares ISA is not flexible.
Capital at risk.
Bestinvest is a UK low-cost investment platform that allows you to trade or invest in over 3,000 instruments, including shares, funds, ETFs, and investment trusts. With Bestinvest, you can build an investment portfolio in two ways depending on your personal preferences, goals and attitude to risk.
Beginners or those who prefer a ready-made investment can build their portfolio by selecting one of Bestinvest’s ready-made investment portfolios. These off-the-shelf style portfolios are created and managed by the team at Bestinvest and come with a carefully selected and diversified collection of investments. Once you have picked one, you do not need to do anything else. There are three ranges to choose from: Expert, Smart and Direct, depending on whether you want to maximise the returns for the risk you take, focus on cost-efficiency or focus on individual investments. The team at Bestinvest will walk you through the process of selecting a ready-made portfolio. Advanced or more confident investors can choose from a wide range of funds, shares, ETFs and ITs and build their portfolios themselves.
To start building your portfolio with Bestinvest, you can deposit a lump sum or set up a monthly savings plan which allows you to automatically save or invest a set amount into your investment account every month. There are no set-up fees or fund dealing charges with Bestinvest. Bestinvest charges an annual platform fee ranging from 0.40% to 0% for DIY investing and 0.20% to 0% for ready-made investing. The dealing fee for buying and selling shares online is £4.95 per deal. Bestinvest’s suite of products includes a Stocks and Shares ISA, Junior Stocks and Shares ISA, General Investment Account, SIPP and Junior SIPP. The Bestinvest Stocks and Shares ISA is flexible.
Capital at risk.
Freetrade is a UK mobile trading app that gives you access to thousands of UK and overseas stocks, ETFs, REITs, and investment trusts covering different sectors and markets worldwide. The Freetrade app can be accessed on iOS, Android and desktop devices and offers a slick and easy-to-use user interface and experience. The app is a great choice for both beginners and experienced investors.
With Freetrade, you can invest in fractional shares of even the most expensive US shares with as little as £2. Depositing, trading and withdrawing on Freetrade are commission-free (other charges may apply). FX rates apply to US stocks at the spot rate + 0.99%. To get the most out of Freetrade, you can choose from three subscription plans. The Basic Plan costs £0.00 per month and allows you to open a General Investment Account (GIA) and trade commission-free. The Standard Plan costs £5.99 per month and allows you to open a Stocks and Shares ISA in addition to your GIA. With the Plus Plan at £11.99 a month, you get a Self-Invested Personal Pension (SIPP) and a Stocks and Shares ISA in addition to your GIA. Dealing on Freetrade is commission-free, irrespective of the subscription plan you choose. Freetrade’s suite of products includes a Stocks and Shares ISA, General Investment Account (GIA) and SIPP. The Freetrade Stocks and Shares ISA is not flexible.
Promo: Get a free share worth up to £100 when you open a Freetrade ISA. Terms apply.
Please note: Capital at risk. The value of your investments can go down as well as up, and you may get back less than you invest. ISA rules apply. SIPP eligibility and tax rules apply. Free share terms and conditions apply.
Hargreaves Lansdown is a FTSE 100 company and the largest investment platform in the UK. Its core mission is to build long-term client relationships by becoming a trusted partner and financial champion, ultimately helping you increase your financial security for the future.
If you choose to invest with Hargreaves Lansdown, you will gain access to over 2,500 funds, UK and overseas shares, ETFs, ETCs, investment trusts and more. With Hargreaves Lansdown, you can build your investment portfolio in one of two ways, depending on your investing savviness. Beginner investors or those who prefer a ready-made investment portfolio can build their portfolios by choosing from a range of ready-made options where the team of experts at Hargreaves Lansdown will take care of the day-to-day investment decisions for you. Advanced or more confident investors can choose from a wide range of funds, shares and other investments and build their portfolios themselves.
Hargreaves Lansdown does not charge a platform fee on its Fund and Share Account but charges 0.45% (capped at £45) a year on its ISA and 0.45% (capped at £200) a year on its SIPP. It offers most products, including a Fund and Share Account (GIA), Stocks and Shares ISA, Lifetime ISA, Junior ISA, and SIPP. These services are intended for investors who are happy making their own decisions. The Hargreaves Lansdown Stocks and Shares ISA is not flexible.
Capital at risk. The fees quoted here are not exhaustive. Other charges apply.
Wealthify is a UK robo advisor that allows you to choose from five investment plans based on your attitude to risk. These investment plans are named Cautious, Tentative, Confident, Ambitious and Adventurous and allow you to choose a risk level that best suits your needs. If you are conscious about the environment or would simply like to invest in line with your values, Wealthify’s five portfolios are also available as ethical investment plans, so you can stay true to your values while potentially growing your money.
With Wealthify, the minimum investment is £1, and you can withdraw your money anytime. There is an annual platform fee of 0.60%, and fund management fees range from 0.16% to 0.70% per year, depending on your chosen investment theme. Once you complete the signup process, you can start investing with a lump sum of £1, which you can top up as frequently as you want.
Wealthify’s suite of products includes a General Investment Account, Stocks and Shares ISA, Junior ISA and SIPP in both Original and Ethical themes. The Wealthify Stocks and Shares ISA is not flexible.
Capital at risk.
Moneyfarm is a UK robo advisor that provides you with a personalised investment plan based on your risk preferences and goals. It also offers one of the best fully-managed stocks and shares ISAs in the UK. With Moneyfarm, you can invest in one of seven risk-rated portfolios recommended to you based on the result of an online assessment. Each portfolio comprises a mix of cost-efficient exchange-traded funds (ETFs) and other passive index trackers. Moneyfarm also offers ethical or ESG investment options for those who want to invest in line with their values.
Moneyfarm’s customers benefit from free and personalised digital financial advice from Moneyfarm’s investment consultants, and you can chat, phone, email, or meet your consultant in person. To get started, you will be asked to complete a short survey so that Moneyfarm can better understand how you approach your finances before matching you to your investment portfolio and consultant.
You can start investing with Moneyfarm with as little as £500. Moneyfarm charges an annual management fee depending on how you choose to invest, ranging from 0.75% to 0.35% on the total value of your portfolio. An annual fund management fee of 0.20% (average) also applies to all portfolios. This is built into the cost of the ETF or tracker fund on any given day, so you will not see fund charges being deducted from your portfolio directly. Moneyfarm’s suite of products includes a Stocks and Shares ISA, Junior ISA, General Investment Account, and Personal Pension. The Moneyfarm Stocks and Shares ISA is flexible.
Capital at risk.
Typically, your annual charge depends on whether you hold funds, shares or both in your Stocks and Shares ISA. Here, we assume you will invest in funds only.
The table below shows the annual charges (platform and dealing charges only) for holding funds in a DIY ISA.
To make the best use of the table, click on the column headers to sort from the most expensive to the cheapest Stocks and Shares ISA for funds and vice versa.
For example, if you want to see the cheapest Stocks and Shares ISA for regular investments of £100 per month, click once on the £100 per month header. To see the most expensive for a lump sum investment of £20k, click twice on the £20,000 lump sum header. Continue this exercise on all the headers until you find what you are looking for.
Capital at risk. ISA rules apply. Other charges apply.
Typically, your annual fees depend on whether you hold funds, shares, or both in your Stocks and Shares ISA. Here, we assume you only plan to invest in shares only.
The table below shows the annual charges (platform and dealing charges only) for holding individual stocks and shares in a Do-It-Yourself or Self-Select ISA.
To make the best use of the table, click on the column headers to sort from the most expensive to the cheapest Stocks and Shares ISA for shares and vice versa.
We have not included any calculations for regular investing, but we note the regular investor charges in the second column.
The third column shows the share dealing charges for ad hoc investments.
The fourth and fifth columns show the annual charges for lump sum investments of £20,000 and £100,000, respectively.
Please keep in mind that when you trade, your capital is at risk. ISA and tax rules also apply. Other charges apply.
The table below compares the annual charges of the best robo advisors for Stocks and Shares ISAs in the UK. Our goal is to help you visualise your investment fees before committing to a robo advisor.
Robo advisors are best for individuals or households who would rather not spend valuable time researching the stock markets or picking individual stocks and other investments. When you choose to invest via a robo advisor, you essentially outsource the task of picking investments and building a portfolio to professional money managers or automated money management systems.
To make the best use of the table, click on the column headers to sort from the most expensive to the cheapest robo advisor in the UK and vice versa.
Capital at risk. ISA rules apply. Other charges apply.
A Stocks and Shares ISA is a tax-free investment account in the UK that adults aged 18 and above can use to buy, sell, and hold investments such as shares, bonds, and funds. This tax year, you can invest up to £20,000 in one Stocks and Shares ISA or split it between a Stocks and Shares ISA and other ISAs.
A Stocks and Shares ISA is also called an Investment ISA.
You can open a Stocks and Shares ISA with investment platforms such as banks, building societies, stockbrokers, fund supermarkets, robo advisors, and other financial institutions.
Once your ISA is open, you can invest up to £20,000 in a wide variety of assets, including individual stocks and shares, corporate and government bonds, and funds.
Depending on the Stocks and Shares ISA platform you choose, you will have the option to either select and manage the individual assets that make up your portfolio (Self-Select ISAs) or choose from a range of ready-made portfolios (robo advisors and managed ISAs).
You get a new ISA allowance at the beginning of each tax year. The tax year starts on the 6th of April and ends on the 5th of April the following year. Any unused allowance expires at the end of the tax year, and you cannot carry it forward. This tax year, the ISA allowance is £20,000.
When you are ready to invest, you can choose between making a lump sum investment and/or making regular or ad hoc contributions throughout the tax year.
Here are a few examples of the types of assets that can be held within a Stocks and Shares ISA:
To invest in a Stocks and Shares ISA, you need to open an investment account with an investment platform or stockbroker such as Interactive Investor, InvestEngine, or AJ Bell. Once your account is open and funded, you need to research investment products, choose your investments, invest regularly and monitor your portfolio.
Here is a breakdown of how to invest in Stocks and Shares ISAs in the UK:
To become an ISA millionaire, you need to contribute the maximum ISA allowance of £20,000 annually for at least 25 years and achieve a 5% average growth rate that compounds yearly.
To reach ISA millionaire status in 10 years, you must contribute the maximum allowance each year and achieve a 30% average growth rate that compounds yearly.
At a 10% growth rate compounded annually, you’ll become an ISA millionaire in 18 years, while a 20% growth rate will get you there in 13 years.
It follows from the above that to achieve ISA millionaire status, one must start contributing to an ISA as early as possible and identify sound savings and investment opportunities, such as investing in the stock market via a Stocks and Shares ISA to help you reach your goals faster.
You should also invest often to take advantage of pound-cost averaging, reinvest your dividends to benefit from compound interest and stay consistent, patient and disciplined even when the market takes a hit.
The cost of your Stocks and Shares ISA depends on a number of factors, including the platform you choose, the type of investments you hold and the total value of your investments.
Here is a breakdown of some of the fees you might pay when investing in a Stocks and Shares ISA in the UK:
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