Our Pick Of The Best Stocks And Shares Junior ISAs

Forbes Staff, Contributor

Published: Apr 5, 2024, 3:35pm

Laura Howard

Editor

Reviewed By

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A stocks and shares Junior ISA (JISA) is a tax-efficient investment account for children under the age of 18.

They were introduced, along with their counterparts, Junior Cash ISAs, back in 2011 as a replacement to Child Trust Funds (CTFs). According to the Office for National Statistics, an average of £1,229 was invested into Junior ISAs during the last tax year across 1.2 million accounts.

Tax treatment depends on individual circumstances and may be subject to future change. The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of tax advice.

Guides to ISAs

Reviews

Interactive Investor

Flat fee of £11.99 per month (add as many Junior ISAs as you have children)

Investor Plan includes free regular investing and first trade free every month

Interactive Investor

Open Account

On interactive investor’s Website

Featured Partner Offer

AJ Bell: Junior ISA

One of lowest platform fees on the market

Over 8,200 shares and 6,000 funds, ETFs and investment trusts

AJ Bell: Junior ISA

Open Account

Featured Partner Offer

Your capital is at risk.

Our Pick Of The Best Stocks And Shares Junior ISAs

BEST ALL-ROUNDER – OUR PICK

Hargreaves Lansdown: Junior ISA

Platform fees

No fee

For Junior ISAs

Choice of investments

Over 3,000 funds, 8,500 UK, US, Canadian and European shares, 1,400 ETFs and 400 investment trusts

Minimum investment

£100 (lump-sum), £25 (monthly)

Open Account

On Hargreaves Lansdown's Website

Platform fees

No fee

For Junior ISAs

Choice of investments

Over 3,000 funds, 8,500 UK, US, Canadian and European shares, 1,400 ETFs and 400 investment trusts

Minimum investment

£100 (lump-sum), £25 (monthly)

Why We Picked It

Hargreaves Lansdown (HL) offers a wide range of investment options, together with access to quality research.

The provider charges no platform or online trading fees on its Junior ISA, and charges no foreign currency fees on trading in overseas shares. It also negotiates discounts on annual management fees charged by funds.

It offers four ready-made portfolios, along with a ‘Wealth Shortlist’ of over 70 selected funds. Alternatively, customers can pick from the full range of shares and funds.

Extensive support available, including a 6-day-a-week telephone service and secure messaging facility.

Overall, HL offers a low-cost, premium service with an excellent choice of investments, research offering and customer service.

Pros & Cons

No platform fee
No (online) trading fee
No foreign exchange fee
Wide range of investments
Comprehensive support

Minimum lump-sum investment of £100

Indicative fees

Portfolio of £1,000: No fee

Portfolio of £5,000: No fee

Portfolio of £10,000: No fee

interactive investor: Junior ISA

Platform fees

Included at no extra cost for customers on Investor Plan (£11.99 per month) or Super Investor (£19.99 per month) plans

(cannot be opened without holding one of these plans)

Choice of investments

Over 40,000 investment options, including over 3,000 funds, 600 investment trusts and 1,000 ETFs.

Minimum investment

£100 (lump-sum), £25 (monthly)

Open Account

On interactive investor's Website

Platform fees

Included at no extra cost for customers on Investor Plan (£11.99 per month) or Super Investor (£19.99 per month) plans

(cannot be opened without holding one of these plans)

Choice of investments

Over 40,000 investment options, including over 3,000 funds, 600 investment trusts and 1,000 ETFs.

Minimum investment

£100 (lump-sum), £25 (monthly)

Why We Picked It

A Junior ISA is included at no additional cost for interactive investor customers subscribing to the Investor plan (£11.99 per month) or Super Investor plan (£19.99 per month). A Junior ISA is not included in the Investor Essentials plan (£4.99 per month).

The fixed platform fee might be a better option for investors with higher-value Junior ISA pots (or where an adult already holds an Investor or Super Investor plan and there is no incremental cost). However, the trading fees of £3.99 can add up for more frequent traders. Investors can use any free trades under the Investor or Super Investor Plan for trades carried out in their Junior ISA.

It offers a wide range of investment options, including:

Six “Quick Start” funds with low annual management fees.
“Super 60” list of selected funds, investment trusts and ETFs.
“Ace 40” list of ethical funds, investment trusts and ETFs.

Overall, ii is a good all-rounder, particularly for existing customers who can add a Junior ISA at no extra cost (under the Investor and Super Investor plans).

Cash balances earn 2.00% interest (gross) up to the value of £10,000. Balances between £10,000.01 and £100,000 earn 2.75%, from £100,000.01 to £1 million it’s 3.75%, and anything over £1 million earns the top rate of 4.75%.

Pros & Cons

No incremental fee for existing customers (on Investor and Super Investor plans)
Fixed platform fee
Low share trading fee

Trading fee for funds
Customers must hold existing accounts with ii
Fixed fee may be an expensive option for lower-value Junior ISAs

Indicative fees

Portfolio of £1,000: £120

Portfolio of £5,000: £120

Portfolio of £10,000: £120

(Includes trading account and adult ISA under the Investor plan, no additional fee for customers already holding an Investor or Super Investor plan.)

AJ Bell: Junior ISA

Platform fees

0.25% (capped at £30 per year for shares)

Choice of investments

Over 8,200 shares, 3,700 funds, 450 investment trusts and 3,400 ETFs

Minimum investment

No minimum (lump-sum), £25 (monthly)

Open Account

On AJ Bell's Website

Platform fees

0.25% (capped at £30 per year for shares)

Choice of investments

Over 8,200 shares, 3,700 funds, 450 investment trusts and 3,400 ETFs

Minimum investment

No minimum (lump-sum), £25 (monthly)

Why We Picked It

The AJ Bell Junior ISA offers a relatively low platform fee, together with no minimum amount for a lump-sum investment. However, dealing fees of £5 for shares and £1.50 for funds could become expensive if you like to switch investments regularly.

That said, share dealing fees drop to £3.50 when customers made 10 or more trades in their previous month.

It offers a wide range of funds for the DIY investor, in addition to three options for investors looking for guidance on selecting investments:

AJ Bell funds (mainly comprising ETFs)
Nine ready-made portfolios (primarily actively-managed funds and investment trusts)
Choice of around 80 funds from the AJ Bell “Favourite Fund List”

Overall, AJ Bell offers a premium service, with a wide range of investments, good customer support and excellent research.

Pros & Cons

Low platform fee
Ready-made and DIY portfolio options
Wide range of investments
No minimum lump-sum investment

Charges a trading fee for funds
Mid-range online dealing fee for shares (£5) unless you trade regularly

Indicative fees

Portfolio of £1,000: £22

Portfolio of £5,000: £32

Portfolio of £10,000: £44.50

Fidelity: Junior ISA

Platform fees

No fee

Choice of investments

Over 2,500 shares, 3,100 funds, 400 ETFs and 180 investment trusts

Minimum investment

£100 (lump-sum), £25 (monthly)

Platform fees

No fee

Choice of investments

Over 2,500 shares, 3,100 funds, 400 ETFs and 180 investment trusts

Minimum investment

£100 (lump-sum), £25 (monthly)

Why We Picked It

Fidelity charges no platform fee for its Junior ISA, although the dealing fee of £7.50 (for shares) could be expensive for investors who like to change investments regularly. There is no dealing fee on funds.

It offers a wide range of investment options beyond Fidelity’s own funds, including:

“Select 50” fund ideas of selected actively-managed and passive Fidelity and third party funds.
A “Navigator” tool offering fund ideas based on criteria such as income/growth, risk and fees.

However, Fidelity doesn’t offer a ready-made portfolio (beyond the fund-screening tools above).

Overall, Fidelity offers a relatively low-cost Junior ISA with a good choice of investments.

Pros & Cons

No platform fee
No dealing fee on funds
Offers third-party investments

High dealing fee for shares

Indicative fees

Portfolio of £1,000: £22

Portfolio of £5,000: £22

Portfolio of £10,000: £22

Bestinvest: Junior ISA

Platform fees

Funds and shares (for non ready-made portfolios and non-US shares): 0.40% (up to £250,000)

Choice of investments

Over 1,400 shares, 1,600 funds, 390 ETFs and 270 investment trusts

Minimum investment

£50 (initial lump-sum), no minimum (monthly)

Open Account

On Bestinvest's Website

Platform fees

Funds and shares (for non ready-made portfolios and non-US shares): 0.40% (up to £250,000)

Choice of investments

Over 1,400 shares, 1,600 funds, 390 ETFs and 270 investment trusts

Minimum investment

£50 (initial lump-sum), no minimum (monthly)

Why We Picked It

Bestinvest offers one of the lowest platform fees for its ready-made portfolios and US shares, at 0.2% (up to £500,000).

There is a choice of seven ready-made portfolios, comprising a mix of funds and shares, and these are managed on an ongoing basis by Bestinvest.

While the platform fee of 0.4% (up to £250,000) for DIY investors (in non-US shares or ready-made portfolios) is one of the highest, it is partly offset by low dealing costs, which may work well for investors who like to change investments regularly.

Overall, Bestinvest offers a good range of investments and is a relatively low-cost option for investors wanting to buy and hold US shares.

Pros & Cons

No dealing fee on funds
No dealing fee on US shares
Low dealing fee of £4.95 for UK shares

Relatively high platform fee of 0.4%
High annual management fee on ready-made portfolios

Indicative fees

Portfolio of £1,000: £19

Portfolio of £5,000: £35

Portfolio of £10,000: £55

Charles Stanley Direct: Junior ISA

Platform fees

0.35% (up to £250,000, shares have a minimum annual fee of £24 and a maximum of £240).

Platform fee on shares waived if one or more chargeable trade on any account within a calendar month

Choice of investments

Over 12,500 shares, funds, investment trusts and ETFs

Minimum investment

Funds only: £500 (lump-sum), £50 (monthly)

Platform fees

0.35% (up to £250,000, shares have a minimum annual fee of £24 and a maximum of £240).

Platform fee on shares waived if one or more chargeable trade on any account within a calendar month

Choice of investments

Over 12,500 shares, funds, investment trusts and ETFs

Minimum investment

Funds only: £500 (lump-sum), £50 (monthly)

Why We Picked It

Charles Stanley Direct offers a wide range of investment options for its Junior ISA, together with a mid-range platform fee.

However, it charges one of the highest share-dealing fees (£11.50), although this is waived for any money held in stocks and shares in months that you make a stocks and shares trade.

In addition to a wide range of investments, investors can also choose from its “Preferred List” of around 70 actively-managed and passive funds.

Overall, Charles Stanley Direct may be a better option for higher-value portfolios due to the minimum platform fee on share-based investments.

Pros & Cons

No dealing fee on funds

High share dealing fee of £11.50, however you pay no share-based platform fees in that month

Indicative fees

Portfolio of £1,000: £60

Portfolio of £5,000: £67

Portfolio of £10,000: £76

Vanguard Junior ISA

Platform fees

0.15%

Choice of investments

Over 80 Vanguard funds

Minimum investment

£500 (lump-sum), £100 (monthly)

Platform fees

0.15%

Choice of investments

Over 80 Vanguard funds

Minimum investment

£500 (lump-sum), £100 (monthly)

Why We Picked It

Although it only offers its own investments, Vanguard’s Junior ISA has been included for investors looking for a relatively low-fee, ready-made portfolio.

There are two options:

5 LifeStrategy funds, primarily invested in passive funds. These have a low annual management fee of 0.22%.
Around 80 individual Vanguard funds, primarily passively-managed but with some actively-managed funds. Most of these charge an annual management fee of around 0.2% to 0.5%.

Pros & Cons

Lowest platform fee
Low management fee for many funds
No dealing fees

Limited to Vanguard investments
One of higher monthly minimum investments

Indicative fees

Portfolio of £1,000: £2

Portfolio of £5,000: £8

Portfolio of £10,000: £15

Summary: Best Junior Stocks And Shares ISAs

Provider	Forbes Advisor Rating	Platform fees	Choice of investments	Minimum investment	View More
Hargreaves Lansdown: Junior ISA	5.0	No fee	Over 13,000	From £25	View More
Interactive Investor Junior ISA	5.0	From £11.99 per month	Over 40,000	From £25	View More
AJ Bell Youinvest: Junior ISA	5.0	0.25%	Over 15,700	No minimum	View More
Fidelity: Junior ISA	4.5	No fee	Over 6,100	From £25	View More
Bestinvest: Junior ISA	4.0	0.40% (self invested)	Over 3,500	No minimum	View More
Charles Stanley Direct: Junior ISA	4.0	0.35%	Over 12,500	From £50	View More
Vanguard : Junior ISA	4.0	0.15%	Over 80	From £100	View More

What is a Junior ISA?

A Junior ISA – known as a JISA – is a long-term tax-free savings plan for children. They can be opened for children under the age of 18 and there are two types – cash JISA or stocks and shares JISA (equities). The savings belong to the child and they can access them from the age of 18.

How much can you invest in a Junior ISA?

A maximum of £9,000 per child can be invested in a JISA each tax year (2024/25). The tax year runs from 5 April. It is not possible to carry over any unused JISA allowance into the following tax year.

Who can contribute to a Junior ISA?

Anyone can contribute into a JISA on behalf of the child including parents, but also grandparents and other family members, godparents or family friends.

Which providers offer stocks and shares JISAs?

But what are the best stocks and shares JISAs on the market? We researched a range of JISA providers and have listed our findings below. Our methodology explains how we ranked the advisors and our Frequently Asked Questions section explains how JISAs work.

Benefits of opening a Junior stocks and shares ISA

Tax-free returns. Money invested in a stocks and shares JISA is free from income or capital gains tax
Potential for higher returns. Investing in equities may also result in better returns over the long term, compared to cash deposits, if you’re prepared to take a higher risk. However, the value of your JISA can fall as well as rise.
JISA is out of reach until 18. Your child will not be able to access the funds in their Junior ISA until age 18. This gives plenty of time for the fund to grow and avoids the temptation of spending it early.

Risks of investing in a Junior stocks and shares ISA

Volatility and poor investment performance. The value of an ISA invested in the stock market will fluctuate, which can be nerve-wracking, particularly when stock markets fall. Some funds may also underperform relative to their peers.
Child has access to the funds at 18. Some parents may have concerns that their child will have full access to their JISA funds at the age of 18 – to use as they wish. It makes sense to talk to JISA holders about their savings and investments well in advance of their 18th birthday, talking about sensible uses for the money or continued investment, for example.
Fees and charges. JISA funds typically incur platform fees and potentially other fund charges on top, which will eat into their performance over time. It’s important to regularly review your JISA provider and its fees to ensure you’re not paying more than you need.

Investments in a currency other than sterling are also exposed to currency exchange risk.

Currency exchange rates are constantly changing which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

What’s our methodology?

We compared stocks and shares Junior ISA providers according to three main criteria: platform fees, range of investments and minimum investment amounts.

We focused on providers with platform fees of less than 0.5%. With the exception of Vanguard, all of the providers offered a wide range of third party funds, investment trusts and exchange-traded funds.

We also considered the minimum investment amount by provider, both in terms of a lump sum investment and regular monthly investing.

We recorded additional details including any dealing charges for funds and shares, and the range of ready-made portfolios and investment suggestions available, together with the associated underlying management charges.

We overlaid this research with editorial judgement to arrive at our Forbes star ratings.

What assumptions did we use?

portfolio value: £1,000, £5,000 and £10,000
portfolio split: 50% funds, 50% UK shares (for providers offering only funds, 100% funds)
frequency of trading: 6 trades a year split equally between funds and UK shares (unless the provider offered only funds).

How do stocks and shares JISAs work?

You can invest up to £9,000 in a stocks and shares Junior ISA in the current 2023-24 tax year. As with an adult stocks and shares ISA, any unused allowance cannot be carried over to the following tax year.

The full annual Junior ISA allowance can be invested in a stocks and shares JISA, or split between a stocks and shares JISA and a cash JISA – more on these below.

Each child can only hold one stocks and shares JISA and one cash JISA. You can transfer a stocks and shares JISA from one provider to another, or move money between cash and stocks and shares Junior ISAs.

Stocks and shares Junior ISAs can be opened by a parent or legal guardian, but, once the JISA is opened, anyone such as friends and family members can contribute money.

There is a wide choice of different investment options, including funds, investment trusts, bonds and shares. Any income or capital gains will be free from tax.

Depending on the provider, your child may be able to take control of their Junior ISA from 16. However, they are unable to withdraw any funds until they reach the age of 18.

At this point, your child can either withdraw the funds, or the account will be converted to an adult stocks and shares ISA. Children aged between 16 and 17 are also able to hold an adult cash ISA, in addition to their Junior ISA.

Stocks and shares JISAs versus Cash JISAs

While cash JISAs continue to be a popular choice, stocks and shares JISAs have the potential to offer greater returns compared over time. However, they are also higher risk as the investment value can go down as well as up, and you could get back less than you have paid in.

For this reason, it’s best to speak to an independent professional financial adviser before choosing to invest in a stocks and shares Junior ISA.

How much should I put in a Junior stocks and shares ISA each year?

The maximum savings limit is £9,000 per child per tax year into a Junior ISA. You can save as much as you want up to this tax-free annual limit. How much you can save in a JISA will depend on several factors, such as how much available cash you have to save, how many children – and JISAs – you need to save into, and whether or not you are making other savings on behalf of your family.

Frequently Asked Questions

Who is eligible for a stocks and shares Junior ISA?

Your child will be eligible for a stocks and shares Junior ISA if they are under the age of 18, a UK resident and do not already have a Child Trust Fund (they cannot have both).

Children born between 1 September 2002 and 2 January 2011 will have had a CTF automatically opened for them by the government. However, you have been able to convert CTFs to a Junior ISA since 2015.

How do I open a stocks and shares Junior ISA?

Stocks and shares Junior ISAs are offered by a range of providers, including the main DIY investing platforms such as Hargreaves Lansdown, AJ Bell and Interactive Investor. It’s worth comparing the platform fees charged, minimum investment amounts and the range of investments offered. Most of these accounts can be opened online or over the phone.

If your understanding of the stock market is limited, you should consult an independent professional financial adviser before applying for a stocks and shares Junior ISA.

What is the minimum amount I can pay into a stocks and shares Junior ISA?

This will vary depending on the provider, but some providers offer a minimum lump sum investment of £25 upwards. For regular monthly investments, the minimum is typically £25 to £50.

Is a stocks and shares Junior ISA safe?

Investments fall under a different part of the Financial Services Compensation Scheme (FSCS) to savings accounts.

This provides protection of up to £85,000 per customer if the investment provider ceases trading, provided they are authorised and regulated by the Financial Conduct Authority or the Prudential Regulation Authority. Before opening a Junior ISA, you should check that the provider is covered by the FSCS.

However, this does not provide protection of the underlying investment itself. For example, if you held shares in a company and the company went bust, you would not be protected. Stocks and shares Junior ISAs are riskier than cash Junior ISAs and the value of your investment may go down as well as up, or you could lose all the money you invested.

What fees will I have to pay?

There are three main types of fees for a stocks and shares Junior ISA:

Platform fees: these are annual fees charged by the JISA provider and are typically 0.25% to 0.4% of the value of your JISA.
Dealing fees: most JISA providers charge a fee of £5-10 for buying and selling shares, investment trusts and exchange-traded funds. Many JISA providers do not charge for buying or selling funds.
Investment fees: these are charged by the underlying investment. For example, actively-managed funds typically charge an annual management fee of 0.5% to 1.0%, compared to 0.1% to 0.3% for passively-managed (tracker-type) funds.

There may also be other fees, such as a fee for transferring your Junior ISA to a different provider.

How do I pay into a stocks and shares Junior ISA?

You can usually log into your child’s Junior ISA account online and add money with your debit card, or you can set up a regular payment by direct debit. Alternatively, some providers will allow you to add money to the account over the phone or send a cheque by post.

When you pay into a stocks and shares JISA, you can choose the underlying investments or leave the money in cash to be invested at a later point. Although cash held in a stocks and shares JISA does not generally earn any interest, this can be a useful option if the stock market is volatile or you want to select your investments at a later point.

How many Junior ISAs can my child have?

Your child can only have one stocks and shares Junior ISA and one cash Junior ISA. If you wish to transfer a stocks and shares Junior ISA to another provider, you must transfer the whole amount.

If you want to transfer a stocks and shares Junior ISA to a cash Junior ISA, you can carry out a full or partial transfer, so long as the child does not end up with more than one of each Junior ISA type.

When will my child get access to the money?

Your child may be able to start managing their stocks and shares Junior ISA from the age of 16, although this depends on the provider. However, they will not be able to withdraw any of their funds until they turn 18.

What is the difference between a Junior ISA and a Child Trust Fund?

Child Trust Funds were tax-free savings accounts launched in 2005 to encourage parents to save or invest for their child’s future. But they were effectively replaced six years later by Junior ISAs.

You can still save in a Child Trust Fund if you have an existing account and switch between providers. But generally CTFs offer a more limited choice of investments (for stocks and shares accounts) or lower interest rates (for cash-based CTFs). Parents can transfer a child’s CTF funds into Junior ISAs.

Can I transfer a Child Trust Fund to a stocks and shares Junior ISA?

Yes. The government introduced the option to convert a Child Trust Fund into a Junior ISA in 2015.

If you want to switch your CTF to a stocks and shares JISA, it’s best to speak to an independent financial adviser as you cannot switch back to a Child Trust Fund if you change your mind.

Guides to ISAs

Reviews

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

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Jo Groves Forbes Staff

Having worked in investment banking for over 20 years, I have turned my skills and experience to writing about all areas of personal finance. My aim is to help people develop the confidence and knowledge to take control of their own finances.

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I've been writing about personal finance issues for many years across a wide range of websites, magazines and newspapers. My role is to demystify financial products, explain people's options and help them make the most of their money.