In this guide
A stocks & shares ISA can be the perfect environment to grow your money for a long-term goal. Whether you’re a novice or experienced investor, we list some of the best options below.
Unlike a savings account which offers a guaranteed rate, determining the best stocks & shares ISA is more nuanced. There are several factors to consider when choosing your platform, such as user experience, range of investment options, and overall cost.
Ultimately people value these factors differently, so below we’ve listed a range of different platforms which may be of interest.
This article explores:
- How to pick the right stocks and shares ISA
- Our top five ready-made stocks and shares ISAs
- Our top five self-invested stocks and shares ISAs
- What are the fees on a stocks and shares ISA?
Read more: Best cash ISAs in 2024
*This article contains affiliate links which earns us revenue
What is a stocks and shares ISA?
A stocks and shares ISA is a way of investing your money in a tax-free wrapper. This means you don’t have to worry about income tax, capital gains tax or dividend tax on any profits you make.
Stocks and shares ISAs form part of your £20,000 ISA limit, so there is a cap on how much you can fund your account each year.
For a more detailed explanation of stocks and shares ISAs, make sure to read our guide.
What is the best performing stocks and shares ISA?
Unlike a savings account, where returns can be compared by rate, the top performing stocks and shares ISA will depend on the make-up of your portfolio.
Remember that’s the fundamental risk you’re taking by investing, you may earn more than the best savings account but you also may earn less than what you put in.
Fees also plays a role in the performance of your stocks and shares ISA. We explain what charges you may incur below.
No management fees for 12 months with Wealthify
If you’re thinking about opening a stocks & shares Isa, then now could be a good time to do so with Wealthify: your easy-to-use, online saving and investing service. As a Times Money Mentor reader, Wealthify are offering zero management fees (usually 0.6%) for new customers who open any one of their investment products, including Isas, Junior Isas, pensions and general investment accounts.
T&Cs apply. Capital at risk. The tax treatment of your investment will depend on your individual circumstances and may change in the future. Wealthify is authorised and regulated by the Financial Conduct Authority.
How to pick the right stocks and shares ISA
If you’re unsure where to open your stocks and shares ISA, a great place to start is by considering some of the best investment platforms.
Some investment platforms will suit different types of investors. For example, Dodl by AJ Bell is designed for beginner investors who are looking to manage their funds via an easy app. In comparison, AJ Bell is targeted at more advanced customers who wish to have greater control over their own portfolio.
That’s why below we’ve separated the best stocks and shares ISAs into two categories. We’ve listed the best ready-made portfolios, which could suit you better if you’re looking for a fund managed by an expert manager, and the best DIY options. The latter could be a great option if you feel confident enough to manage your own investments.
Read more: What is a robo-adviser?
Our top five ready-made stocks and shares ISAs
Wealthify
Best for a unique offer
New customers pay no management fees (usually 0.6%) for 12 months, when they open any one of Wealthify’s investment products, including a Stocks & Shares Isa, Junior Isa, Pension and General Investment Account. To be eligible, you must apply using the link below.
T&Cs apply. Wealthify is authorised and regulated by the Financial Conduct Authority.
About Wealthify: Owned and backed by Aviva, Wealthify is an easy-to-use, online saving and investing service. Wealthify have one of the slickest apps and online dashboards, meaning it’s easy to manage and track how your money’s performing. Their experts handle everything for you, and you can start investing from as little as £1 for all accounts besides its pensions, which require a £50 minimum deposit.
The platform is straightforward to use with five risk levels to choose from, plus you can opt to go down the ethical investment route.
Wealthify, which is owned by Aviva, charges an annual management fee of 0.6%. Its Original portfolio costs an average of 0.16% on top of this each year, while its Ethical portfolio costs an extra 0.7% over the same period.
It has no hidden costs as it doesn’t charge for withdrawals, depositing money, transferring or closing your plan. You can also try out the app before you sign up.
Capital at risk. ISA rules apply. The tax treatment of your investment will depend on your individual circumstances and may change in the future.
Halifax
Best for simplified investing
This can make things cheap if you have a large portfolio, although everyday trading may become expensive. This is because a 1.25% foreign exchange fee may applies to every international deal you make, like investing in Apple. If you’re focused on the local market, a £9.50 dealing commission applies to each real time UK trade you make.
It’s a great option if you bank with Halifax because you can view your other finances all under one app. It’s also worth noting that the Bank of Scotland is in the same banking group as Halifax, so it too offers a similar stocks & shares ISA set-up.
Capital at risk. ISA rules apply. The tax treatment of your investment will depend on your individual circumstances and may change in the future.
InvestEngine
Best for: ETF investing
Transfer or open an ISA with InvestEngine using our link below before 30 April 2024 and you can earn a bonus between £20 and £2,500.
To receive the full £2,500 bonus you’ll need to invest £300,000 through the investing platform. Ts&Cs apply
About InvestEngine
Shortlisted for the Times Money Mentor 2023 awards, InvestEngine is a great, low cost option if you’re a DIY investor with an ETF-heavy portfolio. This is because the platform itself doesn’t charge any fees for these investors, but ETF and market spread costs still apply.
Coupled with your tax-free ISA wrapper your costs are kept low and simple. It’s only if you choose to invest in one of its managed portfolios when the platform charges a 0.25% ongoing fee.
The platform itself hosts nearly 600 different ETFs, from S&P 500 tracking funds to others invested solely in the Robotics sector.
As an added bonus, if you sign up to its platform and refer a friend you’ll each receive up to £50. T&Cs apply.
Capital at risk. ISA rules apply. The tax treatment of your investment will depend on your individual circumstances and may change in the future.
Plum
Best for an award winning app
Within this app you can customise your stocks & shares ISA to your liking. You can invest in the US stock market, with companies such as Apple and Microsoft, or you can invest in a fund carefully weighted by experts. These options typically track certain indices, for example “the Medic” fund tracks the pharmaceutical sector.
However, Plum isn’t the cheapest provider on this list. It commands a monthly fee of £2.99 and may charge additional fees depending on the make-up of your portfolio. Funds incur a management fee of 0.45% and potentially a fund manager fee which could be between an additional 0.13% and 0.88% of your portfolio.
Capital at risk. ISA rules apply. The tax treatment of your investment will depend on your individual circumstances and may change in the future.
AJ Bell Dodl
Best for cheap fees
While the provider doesn’t charge a dealing fee, there are a few other potential charges depending on the make-up of your portfolio. If you have any money invested in funds, including ETFs, you’ll be charged a management fee from your provider and American shares incur a FX charge between 0.25% and 0.75%.
Dodl also offers a slick app too. So if you’re keen on managing your portfolio on the go it can be a great option. Here you’ll be able to invest in a range of shares, funds and ETFs.
Capital at risk. ISA rules apply. The tax treatment of your investment will depend on your individual circumstances and may change in the future.
Need help choosing a Stocks & Shares ISA?
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Our top five self-invested stocks and shares ISAs
The fee falls to 0.1% for funds between £250,000 and £500,000 and there are no charges on funds over £500,000.
Currently, online share trades cost £5, but this figure soon drops to £3.50 for anyone doing more than 10 transactions a month. It costs £1.50 for online fund trades.
Capital at risk. ISA rules apply. The tax treatment of your investment will depend on your individual circumstances and may change in the future.
Interactive Investor
LATEST OFFER: Invest and get £50 of free trades
Why we rate it: Interactive Investor works differently to other investing platforms. Instead of charging a fee which becomes a portion of your holdings, it requires a flat payment each month.
It’s setup is likened to the “Netflix model”, so it can be the lowest-cost provider if you have a large portfolio. Its subscription service starts at £4.99 a month and if you wish to trade UK or US shares you’ll pay £3.99 per trade.
Once your portfolio’s value exceeds £50,000 you’ll then move onto its Investor plan which charges £11.99 a month but provides a free trade each month.
You’ll also be able to invest in a range of investing options such as funds, fixed income, ETFs, and shares.
Capital at risk. ISA rules apply. The tax treatment of your investment will depend on your individual circumstances and may change in the future.
It also caps the amount it’ll charge for holding ETFs at £7.50 a month, making it an interesting choice if they form the bulk of your portfolio. Other dealing fees apply, and for funds your management fee will depend on your portfolio.
Capital at risk. ISA rules apply. The tax treatment of your investment will depend on your individual circumstances and may change in the future.
Vanguard ISA
At 0.15%, Vanguard’s platform fee is one of the lowest on the market, and its fund range is also known for its rock-bottom fees.
However, you’re limited to investing in Vanguard’s own products – mainly exchange traded funds (ETFs) and index funds – and there’s no way to trade shares.
Capital at risk. ISA rules apply. The tax treatment of your investment will depend on your individual circumstances and may change in the future.
IG Stocks & Shares ISA
Best for experienced, high net-worth investors
This is because it allows you to employ a range of investing strategies. If you’re looking to keep your investments simple, then there are likely better options on the market.
Not to mention, its fee structure rewards those who regularly trade. This is because it charges zero commission on US shares if you make at least three trades a month. Although a foreign exchange fee of 0.50% applies, it can save you decent money if you frequently trade.
If you wish to trade UK equities, then there is a £8 fee per trade. This drops to £3 per trade if you make more than three trades a month.
IG’s ISA is flexible, meaning you can withdraw and reinvest your funds throughout the year without forfeiting your allowance.
Capital at risk. ISA rules apply. The tax treatment of your investment will depend on your individual circumstances and may change in the future. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Should I opt for a DIY or ready-made portfolio?
If you are fairly new to investing or are not confident at making your own investment decisions, a ready-made portfolio could be preferable.
This is where the platform will offer you a range of investments based on your attitude to risk.
Charges for ready-made portfolios tend to be relatively straightforward, with most charging a platform fee plus a fund management flat fee.
If you want to take the DIY approach and build your own portfolio, you’ll need a self-invested stocks and shares ISA.
Most of these will let you hold shares in a wide range of stocks listed on the FTSE 100, Dow Jones and Nikkei 225.
You should also be able to invest in funds and investment trusts, though you’ll need to watch out for the charges that can be attached to these accounts.
Remember: It is always better to choose an financial services provider that is authorised and regulated by the Financial Conduct Authority.
If you need a helping hand setting up the ISA, choosing the investments and deciding how much to pay in, Kellands* is offering all of our readers a free hour-long session* with one of its independent financial advisers. They can get a good idea of your financial goals, and help you take the first step to achieving them.
What are the fees on a stocks and shares ISA?
ISAs don’t come for free so you need to check the fees carefully or you will be losing money needlessly. Here are four of the most common types of ISAs charges to watch out for:
1. Platform fee
- Almost all platforms will charge investors a monthly fee. This will usually be a percentage of the money you hold on the site. For example Hargreaves Lansdown charge 0.45% capped at £45 per year while Interactive Investor’s stocks and shares ISA costs £9.99 a month
- Confusingly, different platforms have different names for these charges, such as service fees or custody charges.
- Some charge a flat fee while others charge a percentage of the funds.
- Most platforms charge tiered fees, meaning charges are lower for people with larger sums of money.
2. Dealing charges
- If you’re trading stocks and shares, most platforms will charge you for doing so.
- Platforms such as Trading212 will let you buy or sell a wide range of stocks for free.
- But most platforms will charge a fixed fee per trade, depending on your monthly trades.
- Some platforms charge as little as £4.95 a trade, while others are as much as £15.
3. Transfer fees
- While most companies won’t charge you for transferring your investments to them, others will charge you when you try to leave.
- There are costs involved in transferring your investments to another platform, but some companies charge a lot for this, while others don’t charge anything at all.
- When you’re opening a new account, you’re rarely thinking about leaving. But it’s important to check these charges so that you don’t get stung if you ever decide to move on.
- The most expensive platforms will charge you per holding – as much as £25 for each stock.
- So if you’ve got a diverse portfolio with different holdings, you could pay hundreds of pounds in switching charges.
4. Trading over the phone
- If you like to trade over the phone, be sure to check the charges for this service before signing up.
- Some firms charge as much as £50 for phone trades, while others include it for no extra cost.
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**Capital at risk. All investments carry a varying degree of risk and it’s important you understand the nature of these. The value of your investments can go down as well as up and you may get back less than you put in.
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