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Compare the UK’s cheapest online brokers

Last updated on 22 July 2018.

Behold! An at-a-glance cost comparison of the UK’s main online brokers and investment platforms. These services enable you to buy, manage, and sell your funds, shares, investment trusts and ETFs at a cheap price. All these services are online and execution-only.

The Good for column shows what we think is the best deal by price, relative to account type and portfolio mix.1

This table is edited by fallible human beings. Do your own research. We fix mistakes as soon as possible but we cannot be held liable or accountable for any errors. Please add updates or erratas in the comments below.

Like other price comparison websites, we may be paid a bonus if you sign-up via a link. This does not affect what you pay.

Hate maths? Let our comparison tool do the sums for you.

Flat fee brokers / platforms

Company Annual platform fee Fee notes Dealing: Funds Dealing: ETFs, ITs, & shares Regular investing Entry fee Exit fee2 Good for
Interactive Investor3    £90 £22.50 worth of free trades every quarter £10* £10* £1 £0 if account open less than a year. £10 per holding otherwise.  Min £30/Max £250
Shares ISA
Trading  –
SIPP + £120 + £120 in drawdown + £90 Fund portfolios over £84K, mixed ETF/fund portfolios over £68K4
ShareDeal Active Telephone dealing only for funds £9.50 £9.50 £12 per holding + £60 account closure
Shares ISA £60 £18 cash withdrawal
Trading £18 cash withdrawal
SIPP £118.80 No fee for first year. + £180 in drawdown
Halifax Share Dealing £12.50 £12.50 £2
Shares ISA £12.50 £25 per holding. £125 max Alternative to Lloyds, Selftrade
Trading £25 per holding. £125 max Alternative to Lloyds, Share Centre, Selftrade
SIPP £90 if SIPP worth less than £50K. £180 if SIPP more than £50K + £180 in drawdown5 £60 per transfer. Max £300 £25 per holding (£215 max) +£90
iWeb £25 one-off account opening charge Does not apply to SIPP £5 £5 Large portfolios and infrequent traders, check vs ii, Lloyds, Share Centre, and Halifax
Shares ISA £25 per holding. £125 max
Trading £25 per holding. £125 max
SIPP £90 if SIPP worth less than £50K. £180 if SIPP more than £50K + £180 in drawdown6 £60 per transfer. Max £300 £25 per holding (£215 max) +£90
Lloyds Bank Share Dealing £40 Only one £40 charge if you hold ISA and trading account £1.50 £11* £1.50 £25 per holding. £125 max
Shares ISA Fund portfolios over £26K7, unrestricted mixed ETF/fund portfolios8
Trading Fund portfolios over £26K9, unrestricted mixed ETF/fund portfolios10
SIPP n/a
The Share Centre 1%. £7.50 min* 1%. £7.50 min* 0.5%. Min £1 £25 per holding Large trading accounts
Shares ISA £57.60
Trading £21.60 Alternative to Lloyds, Selftrade
SIPP £172.80 + £234 in drawdown £90 if in drawdown  +£120 if in drawdown
Alliance Trust Savings 4 free trades p.a. £9.99* £9.99* £1.50
Shares ISA £120 £120
Trading £120 £72
SIPP £252 £342 in drawdown 1% of value capped at £18011

Note: Charges may actually be due per month, quarter, six monthly or annually. We’ve chosen to show annual cost of service. All prices include VAT. *A frequent trader rate or bonus is also available.

Percentage fee brokers / platforms

Company Annual platform fee Fee notes Dealing:
Funds
Dealing: ETFs, ITs, & shares Regular investing Entry fee Exit fee12 Good for
Vanguard Investor 0.15% on first £250,000, 0% thereafter. Tiered charge. Max £375  Investments restricted to Vanguard funds and ETFs only £0 £0 twice per day, £7.50 to trade at other times £0 £0 Beats other % fee brokers in most cases and flat-fee brokers up to £46-£56K but restricted range
Shares ISA Fund portfolios up to £43K, mixed ETF/fund up to £56K, ETF portfolios up to £47K
Trading Fund portfolios up to £43K, mixed ETF/fund up to £56K, ETF portfolios up to £47K
SIPP n/a
Close Brothers 0.25% on all investments £0 £8.95 £0 Small fund portfolios
Shares ISA
Trading
SIPP £90 in drawdown
Cavendish Online 0.25% on all investments 0.20% on whole balance if over £200K in all accounts combined £0 £10 £1.50
(ETFs only)
£0 Small fund portfolios
Shares ISA Fund portfolios below £26K
Trading Fund portfolios below £26K
SIPP Fund portfolios below £84K, mixed ETF/fund below £84K
Charles Stanley Direct 0.35% on first £250,000 of funds13 0.35% on shares, ETFs and ITs. Min £24 / Max £24014 £0 £11.50 £10 per holding (This fee starts 10/9/18. We’ll rethink our comparisons anon!)
Shares ISA
Trading
SIPP + £120 No £120 charge if £30,000+ across all accounts. + £150
Selftrade 0.3% on first £50K of funds. 0.25% £50K – £250K. 0.15% over £250K. £1,000 max. Tiered + £12.50 (+ £4.99 per account) minus dealing fees/fund platform charges per quarter. Min £0 / Max £89.92 p.a. £0 buy, £10.99 sell £9.99* ETFs,£10.99* shares £1.50 ETF portfolios with unrestricted range
Shares ISA £15 per holding Unrestricted ETF portfolios15
Trading £4.99 quarterly account charge waived if you own ISA / SIPP £15 per holding Unrestricted ETF portfolios16
SIPP + £118.80 + £180 in drawdown £78 £90
Fidelity 0.35% on all assets worth £7500 – £250,00017 Assets under £7500 = £45 p.a. or 0.35% with monthly savings plan18 £0
Shares ISA ETF and IT fees capped at £45 £10 £1.50 (Not charged on funds)
Trading ETF and IT fees waived £10 £1.50 (Not charged on funds)
SIPP ETF and IT fees capped at £45 0.1% (ETFs / ITs) ETF portfolios – restricted range
AJ Bell Youinvest 0.25% on first £250,000 of funds19 0.25% on first £250K then 0.1% on next £750K etc £1.50 £9.95* £1.50 £25 per holding
Shares ISA + 0.25% charge (max £30) on ETFs, ITs, shares, and bonds
Trading + 0.25% charge (max £30) on ETFs, ITs, shares, and bonds
SIPP + 0.25% charge (max £100) on ETFs, ITs, shares, and bonds. + £120 in drawdown + £90 Unrestricted ETF portfolios
Bestinvest Platform fee applies to all investments Tiered charge e.g. 0.4% on first £250K, 0.2% on next £750K etc £0 £7.50
Shares ISA 0.4% on first £250,00020 0.2% £250,001 – £1 million, 0% over £1 million
Trading 0.4% on first £250,00021 0.2% £250,001 – £1 million, 0% over £1 million
SIPP £100 p.a, plus 0.3% on first £250,00022. No drawdown fee 0.2% £250,001 – £1 million, 0% over £1 million + £150 £25 a quarter SIPP fee coming October ’18.
Barclays Smart Investor 0.2% on funds (£48 min, £1500 max) 0.1% on ETFs, ITs, shares, bonds (£48 min, £1500 max) £3 £6* £1 £0
Shares ISA
Trading
SIPP + £150 + £120 in drawdown £90 per transfer capped at £450 + £90
Hargreaves Lansdown 0.45% on first £250,000 of funds23 Tiered charge. You pay 0.45% on first £250K then 0.25% on next £750K etc £0 £11.95* £1.5024 £30 account closure + £25 per holding
Shares ISA + 0.45% charge (max £45) on ETFs, ITs, shares, and bonds
Trading
SIPP + 0.45% (max £200) on ETFs, ITs, shares, and bonds No drawdown fee
Aviva 0.4% on first £50,000 of funds25 Tiered charge. You pay 0.4% on first £50K then 0.35% on next £200K etc £0 £0
Shares ISA
Trading
SIPP

Note: Charges may actually be due per month, quarter, six monthly or annually. We’ve chosen to show annual cost of service. All prices include VAT. *A frequent trader rate or bonus is also available.

Share dealing brokers

Company Annual platform fee Fee notes Dealing:
Funds
Dealing: ETFs, ITs, & shares Regular investing Entry fee Exit fee26 Good for
Degiro  – Degiro may lend out your shares. A custody account avoids this but charges €1 + 3% (max 10%) for dividend payouts27 n/a Commission free ETF selection. €2 + 0.02% for other ETFs. £1.75 + 0.004% for shares28 €10 per holding €10 per holding No trading costs on select ETF range,29 frequent traders
Shares ISA n/a
Trading
SIPP n/a
X-O.co.uk No funds n/a £5.95 £18 per holding
Shares ISA + £60 account closure
Trading
SIPP £118.80 No fee for first year. + £180 in drawdown + £60 Alternative to Interactive Investor
Interactive Brokers $10 inactivity fee per month. Reduced by value of trades30 $10,000 min to open account. $20 inactivity fee if equity balance below $2,00031 n/a £632 International shares / ETFs
Shares ISA
Trading
SIPP Fees vary

Note: All prices include VAT.

Who is this online broker comparison table aimed at?

We have focussed on low cost platforms that suit DIY investors who want to build a diversified portfolio through index funds and ETFs. The Good for column is therefore biased towards passive investors.

Percentage fee brokers are much better for small investors whose assets are likely to remain below £25,000 (in an ISA) or £70,000 (in a SIPP) for some time to come. If you can only invest small amounts at a time then choose a broker who charges £0 for fund dealing. (Aim to pay no more than 0.5% of your contribution in dealing costs, at the very most).

Fixed fees take a disproportionate chunk out of the assets of small investors. This is why Charles Stanley, Close Bros or Cavendish Online are generally the best for small investors using ISAs and Cavendish Online is best for small investors using SIPPs.

Flat fee brokers are better for most investors who’ve accumulated over £25,000 (in an ISA) or £85,000 (in a SIPP) – percentage fees can siphon off eye-watering amounts if your broker doesn’t apply a cap. Sadly, the table is complicated because every broker is trying to carve out a niche for itself by offering something slightly different to its competitors.

That means there is no one size fits all solution. The Good for column in the table gives you an idea of each broker’s strengths.

Our calculations assume one purchase per month and four sales per year, and that you take advantage of lower priced regular investment schemes when available. Portfolios consist of funds or ETFs or a 50:50 mix.

ETFs vs fund portfolios – Below around £25,000 you’re probably better off with funds. There’s very little to separate Interactive Investor, Halifax, Lloyds, iWeb, YouInvest, Selftrade and Share Centre above that level if you’re a moderate trader using either product type. Ultimately, product OCFs, your trading frequency and picking the right tracker for the job will be more important.

Beginners starting in funds should look at Cavendish Online or Close Bros. 
Low traders – check iWeb and Halifax for ISAs.
Whichever broker you plump for, do check it carries the funds you require. There is considerable variation in range between platforms.

Where is my missing broker?

We haven’t included every last option in this version of our table but we have included the most competitive players in the market. Do let us know if you think we’ve missed anyone important.

More on costs and fees

The ‘Platform charge’ category is intended to capture the various types of service fee typically levied by platforms i.e. custody fee, platform charge, administration fee, inactivity fee and so on until the end of time / your tether.

Assume platform charges are levied per account unless otherwise indicated in the notes column or the footnotes.

Platforms levy various additional costs for extras such as telephone trading. Check a platform’s rates and charges schedule before committing.

These costs are on top of the suite of fees you will pay for investment products such as the Ongoing Charge Figure (OCF).

Take some time to calculate the likely cost of your portfolio when choosing the right broker.

SIPP charges on the table don’t include the various additional fees levied for services once you’re in drawdown.

Platforms run temporary offers and discounts from time-to-time. These are ignored as investing is for the long-term.

Understanding account names

Accounts names vary across the discount broker universe. However they typically conform to the following types:

  • Trading = taxable account i.e. not an ISA or a SIPP. Suitable investments typically include funds, shares,Exchange Traded Funds (ETFs), Investment Trusts (ITs), bonds and more.
  • Shares ISA = Stocks and Shares ISA. Tax sheltered. Suitable investments as above.
    • SIPP = Self-Invested Personal Pension. Tax sheltered. Suitable investments as above.

Why are there only links to some brokers?

Links to brokers are affiliate links, where we may be paid a fee if you go on to open an account with them. We do not choose to include brokers in our table based on whether such affiliate fees are on offer, nor does the existence of such an arrangement change the fees you pay – it is a marketing payment made by them as an incentive for websites to drive traffic to their site. We’d like more brokers to pay us when we introduce new customers – it helps us pay our way on Monevator! Including all brokers but only linking where an affiliate agreement is in place was the best compromise we could come up with.

What this table won’t tell you

Some of these brokers may not be regulated by the UK authorities. Please check directly with each broker, and read our guide to investor compensation schemes to understand why this matters.

We’ve not considered customer service and fringe benefits such as website user experience and research tools, which may be meaningful. Ask away here or at Money Saving Expert’s Savings & Investments board, the ex-Motley Foolers on the Lemon Fool board, or reddit for a broader opinion.

We haven’t accounted for exclusive, discounted funds. Most platforms stock much the same range but the bigger players in the market can negotiate slight fee discounts on certain funds. If you’re tempted by those ‘bargain’ offers then make very sure that your overall cost of investment isn’t more expensive once you load the platforms fees on top.

Please tell us about additions or corrections using the comment form below. Please supply a Web link to your data if possible in your comment to help us verify what should go into the table.

We’ll keep this table as up-to-date as possible, and conduct a sweeping review every three months.

  1. Our calculations assume one purchase per month and four sales per year, and that you take advantage of lower priced regular investment schemes when available. Portfolios consist of funds or ETFs or a 50:50 mix. []
  2. Out to another broker []
  3. Also known as ii []
  4. £84K vs Cavendish []
  5. £300 if age 75+ []
  6. £300 if age 75+ []
  7. £43K vs Vanguard []
  8. £56K vs Vanguard []
  9. £43K vs Vanguard []
  10. £56K vs Vanguard []
  11. No charge for SIPP opened after 31 Mar 2017 if you’re over 55. []
  12. Out to another broker []
  13. 0.2% £250,001 – £500,000, 0.15% £500,001 – £1million, 0.05%£1million – £2 million, 0% over £2 million. []
  14. Charge waived by 1 trade per month. []
  15. £46K vs Vanguard []
  16. £46K vs Vanguard []
  17. 0.2% £250,000 – £1 million. Charges not tiered. Charge capped at £1 million. Treat multiple accounts as one, e.g. 0.2% applies to all assets once £250K barrier crossed. ETF and IT fees capped at £45. []
  18. ETF and IT fees capped at £45. []
  19. 0.1% £250,001 – £1 million, 0.05% £1 million – £2 million, 0% over £2 million []
  20. Charge applies to each account separately []
  21. Charge applies to each account separately []
  22. Charge applies to each account separately []
  23. 0.25% £250,001 – £1 million, 0.1% £1 million – £2 million, 0% over £2 million. Charge applies to each account separately []
  24. on FTSE 350 shares, some ETFs and ITs []
  25. 0.35% £50,001 – £250,000, 0.25% £250,001 – £500,000, 0% over £500,000. []
  26. Out to another broker []
  27. No funds. []
  28. £5 max []
  29. Note, these are ETFs traded on European exchanges not LSE. []
  30. e.g. $10 fee – $6 trade = $4 actual fee that month. Waived on $100,000+ accounts. []
  31. Under 25s can open an account with $3,000 and the inactivity fee is $3. []
  32. up to £50,000 value. £6 + 0.05% of incremental trade value over £50,000. Max £29 []
{ 2255 comments… add one }
  • 2201 John. August 25, 2018, 11:30 am

    CSD are a high quality outfit, far more capable than most of dealing with anything but the most basic of tasks.

    I have an IT income portfolio held with CSD which could be held cheaper elsewhere but which I have no intention of moving.

  • 2202 stephen watson September 17, 2018, 4:22 pm

    I recently moved my SIPP to Fidelity (from AJBell) to benefit from their capped £45 annual etf fee. I do not recommend anyone trying the same. It has taken 4 months and has been dogged by poor and conflicting information from Fidelity. I have had to write numerous letters and make a few long phone calls. I think I am finally there but the customer services rep I spoke today said they would soon be introducing a new charge structure and described the £45 annual fee as a “loophole”. Their fee for funds is a percentage one so if the loophole is closed my Fidelity fees will probably rise 20 fold.

  • 2203 Stephen Watson September 18, 2018, 9:36 am

    Advice from someone with a Fidelity sipp with etfs please? (Linda?)

    I’ve just switched to Fidelity for my sipp and now have 1 etf and a small amount of cash. The switch has been a nightmare with lots of conflicting info from fidelity. Yesterday I was told that if I had ANY cash at all the whole amount is subject to a 0.2% charge and not just the cash element. Does anyone know if this is correct?
    What they have told me to do is to “switch” the small cash element into etf units. (I didn’t know this but you can buy fractions of a unit to take the cash to £0.0). The fees are calculated on the first of the month and then later in the month they sell a minute amount to cover the monthly fraction of the £45 annual fee. Additionally if you have dividends you need to switch them so your balance is always zero cash at the beginning of the month.
    It would be far simpler to leave a small amount of cash but as I say the latest advice I have from fidelity is not to as it triggers the 0.2% on the whole amount.
    Anyone with any direct knowledge please?

  • 2204 Jeff Beranek September 18, 2018, 11:36 am

    @Stephen Watson, regarding Fidelity SIPP charges. What Fidelity apparently have told you sounds wrong in many ways. I’m sorry, but I don’t have direct knowledge of the Fidelity SIPP, but it sounds wrong according to their own terms and conditions – which is what you’ve signed up for. The SIPP charging structure is about as clear as mud, and the cash element of a ETF-only portfolio is particularly difficult to understand how to deal with. Let’s just start with the o.2% fee you mention. Surely this would only be charged on any portfolio assets over £250,000? And in your case this would never kick in because any ETF asset fees are apparently capped at £45. As for a small cash balance causing the entire portfolio to be charged on a percentage fee basis just sounds crazy. As for buying or selling “fractional” ETF shares, I wasn’t aware that was even possible. Also, don’t forget that Fidelity charges a 0.1% fee on the purchase, sale or automatic dividend re-investment of any IT or ETF transaction (i.e. the £10 transaction fee is wrong in the Monevator table). As for how your small cash balance *should* be charged is not entirely clear from the terms, and it depends on whether or not you’ve set up a regular savings plan. Let’s assume you have set up a monthly plan (which would be sensible if you have a single ETF portfolio) and you have £100 in cash and £100,000 in ETFs. It would appear to me that charges due to the ETFs should cap out at £45, but you’ll still need to pay the equivalent of 0.35% a year on any non-ETF/IT balance (i.e. the £100 in cash). So you would always want to have a small cash balance to pay the fee, so that you are not forced to sell any ETF shares.

  • 2205 stephen watson September 18, 2018, 3:50 pm

    Hi Jeff
    Thanks for your comments. I agree with more or less everything but welcome to the confusing world of Fidelity, which is why I would like someone with actual experience to answer. Besides Fidelity giving you lots of conflicting information there are many odd things to my mind:
    Following their instructions yesterday I used my small amount of cash to buy fractions of a unit to bring my cash balance to £0. When I bought it I couldn’t buy it “live” – their website can’t do this, so you put in an order and they buy the next day at an average of that day’s price (bit like a fund?). Didn’t know you could do either of those options.
    If you read their terms it seems clear to me the £45 annual charge only applies to the etf and you would pay the % charge only on the cash. However the adviser was adamant that if there was any cash the whole amount would be charged. I’m sure this contravenes advertising rules but I’ve done what he suggests.
    It seems they are in the midst of renewing their website/platform and fee structure, so I’m just going to bear with it for now.

  • 2206 Linda September 18, 2018, 8:53 pm

    @Stephen Watson
    I will investigate & get back to you. Watch this space.

  • 2207 Linda September 18, 2018, 9:47 pm

    @Stephen Watson

    Logged into my account to check. As far as I can see there is no charge for keeping cash in your SIPP account. I have a note on my diary to remind me to check that there is £45 in the account each year. I looked at my transaction record for this financial year and up to 2nd Sept I have paid £17.15 in fees which is about right as there are 7 months to go. They also appear to pay me a small amount of interest on the cash, as an interest amount of between £0.01 & £0.10 is paid in every month a couple of days after the fee comes out, . Their fee page states that ETFS & Investment Trusts fees are capped at £45 and there are no fees on SIPPs for anything else as far as I can see. The website is a nightmare & when you phone up they don’t seem to kmow the answers to your questions. They have a dedicated Pensions team so make sure you speak to them when you phone & not the investment guys. Reinvesting your spare cash is a challenge & I have it all written down how to navigate the site to do this, after speaking to the pensions team.

  • 2208 Stephen Watson September 19, 2018, 9:27 am

    Thanks Linda – very useful. My preference like you would be to keep about £50 cash in my account on the assumption that doesn’t negate the max of £45 on the etf balance. What you say directly contradicts what I’ve been told by fidelity (if you have ANY cash you pay 0.2% on everything). I haven’t had my first fee bill yet and if it’s based on the £45 max it would be £3.75 and if on everything would be around £100 per month so its a bit risky to try! I must have spoken to every department in Fidelity so really am not sure who to trust there. This latest information supposedly came from the sipp department and is supposed to be definitive. They have even given (unasked for) me 3 small amounts of cash compensation for giving me wrong information during the switch. It seems completely shambolic to me. If you are sure I might try leaving some cash in one month and if it does trigger 0.2% on the whole amount just complain and point them towards their fees on the website.

  • 2209 Linda September 19, 2018, 10:49 am

    @Stephen Watson

    Just log in to your account, go to My Accounts/Transaction History & Reports/Transaction History & you should get a report for the last 30 days. On my report for this period there is one fee and one tiny interest payment. Remember when you phone to make sure you speak to the Pensions team, pretty sure you have been given info that only applies to investing.

  • 2210 Linda September 19, 2018, 10:29 pm

    @Stephen Watson
    It may help you to know that I have over £80 cash in my SIPP at the moment & there have been no extra fees. Their pensions helpline is 0800 358 7480.

  • 2211 Linda September 19, 2018, 10:58 pm

    @Stephen Watson
    I suspect that the differences between us may be the amount in our respective SIPPs. Do a google search for Fidelity SIPP Key Features Document. Pages 7 & 8 should clarify things. Also, I don’t have any ordinary funds in my SIPP, only an etf & an investment trust.

  • 2212 The Accumulator September 23, 2018, 2:55 pm

    @ Jeff – thank you for the Fidelity SIPP correction. We’ll get that changed.

  • 2213 ed September 29, 2018, 12:35 pm

    Hi random question iWeb are quoting a 0.5% transaction charge – is this common? Can i ask is this on top of the £5 fee for buying funds for iWeb? Or is this like an internal fund fee that the fund itself takes from profit? just wondering if i need to take it into account to pay it every year with cash on hand?

  • 2214 The Accumulator September 29, 2018, 5:32 pm

    Hi Ed, if you’re referring to 0.5% stamp duty on UK share purchases then this is a tax, totally standard, and on top of the £5 fee. Paid only on the value of a trade that involves purchasing UK shares.

  • 2215 The Accumulator September 29, 2018, 5:36 pm

    Does anyone have direct experience of Cavendish Online’s minimum contributions for buying funds? What is the minimum contribution? If you sign up to the monthly payment plan can you easily change your mind? For example, cancel your monthly contribution and invest in something else the following month? Or invest in nothing at all until you’ve got enough money to invest again?

  • 2216 Jeff Beranek September 29, 2018, 5:39 pm

    Actually, I think ed was referring to a 0.5% transaction charge at iWeb on funds, including ETFs, that is in addition to the £5 dealing charge and the on-going charge of the fund itself. This is not made very clear on the website until you look at their factsheet: https://www.iweb-sharedealing.co.uk/PDFs/CostsAndCharges.pdf

    I’ve got an ISA with iWeb but only deal listed shares, so there’s no on-going charges and no transaction fees (other than £5 dealing charge and stamp duty).

  • 2217 The Accumulator September 29, 2018, 5:48 pm

    Hi again – anyone use Close Brothers? Do they let you invest in index funds? The public-facing website is very quiet on the topic.

  • 2218 ed September 29, 2018, 5:51 pm

    @Jeff thank you yes i am seeking clarity on that issue – it looks like they charge a 0.5% fee on all funds/etfs held on their account? Can anyone else comment on experience with this? Hypothetically if I was to buy 50K of life strategy 100 – would i be paying £5 for the trade fee 0.5% stamp duty one off and then 0.5% ongoing yearly fee to iWeb? which would be £250/yr and quite high???

  • 2219 Jeff Beranek September 29, 2018, 5:58 pm

    @ed Take a look at the iWeb charges factsheet link and it shows you examples of buying funds or ETFs. You don’t pay 0.5% stamp duty on funds or ETFs, but it looks like iWeb charges you 0.5% to buy or sell them, in addition to the £5 per trade. Every year you also will pay the ongoing charge of the fund itself, but that will be deducted from the price of the fund/shares so you don’t need extra cash in your account to pay this.

  • 2220 Ivanopinion September 29, 2018, 6:02 pm

    There is no 0.5% “transaction charge” made by iWeb on funds. If you study the factsheet fully, the words they use are “Typical transaction cost” and I think it is clear they are referring to the cost of transactions carried out by the fund manager, which you bear indirectly as it comes out of the fund assets. You will incur this regardless of which platform you buy the fund through.

  • 2221 Robbo September 29, 2018, 6:05 pm

    I also noticed this 0.5% mentioned on the iWeb website when buying funds recently. Apparently it is not a new charge but is something they are now disclosing to customers. The amount depends on the fund and the 0.5% is just a typical amount. When I called them they said you need to ask the Fund Manager for the actual amount. From a quick search I think this is related to MiFID II which requires investment managers to disclose additional transaction costs that are charged to their funds, separately from the ongoing charges figure.

    Vanguard have produced a document which shows you these transaction charges here:

    https://www.vanguardinvestor.co.uk/content/documents/legal/vanguard-full-fund-costs-and-charges-2018.pdf

    As an example, on the Lifestrategy funds this is an additional 0.08% to 0.13% on top of the 0.22% ongoing charge.

    I don’t think this charge is unique to iWeb, it would be the same through any broker as it is charged within the fund? It’s just iWeb are now displaying it when place an order.

  • 2222 ed September 29, 2018, 6:06 pm

    @jeff thanks for that clarification i was worried it was a recurring cost from iWeb for holding funds. Still even a 0.5% add on charge for buying something like simple like VWRL or lifestrategy is a bit of a turn off if you want to invest a lump sum and forget about it….

  • 2223 tom September 29, 2018, 6:07 pm

    @JeffB

    I’m not sure about the meaning of this 0.5% funds transaction charge listed in the pdf.

    I’ve got an iweb ISA with one fund. I’ve had it for 18m and done two transactions near to inception (sell all LGUKIA and buy LGBTIA with the entire proceeds). It’s got 40k+ and I don’t see transaction charges for ~£400. I’m not disputing the pdf however it doesn’t seem to be specific charge made by iWeb.

  • 2224 ed September 29, 2018, 6:10 pm

    @tom and @Robbo thank you kindly for your comments I was a bit worried i had switched to iWeb for cheaper saving and had missed the 0.5% fee in the small print. I might just ring and clarify that with iWeb directly just in case – or has anyone had any recent fund purchases without it added on please? sorry @tom but 18 months is a bit long?

  • 2225 Jeff Beranek September 29, 2018, 6:13 pm

    I think you all could be right, although the factsheet examples make it look like a separate charge… They describe the transation fee of 0.5% as “based on industry averge”. This seems very high to me, but perhaps they know something we don’t… Vanguard are about the only people so far to have released their transaction charges and they are a lot lower than this, but of course there are at the cheapest end of the market. I’m sure active funds will charge at least that much. I guess it’s a way of being up front about hidden charges, but being clear as mud about it.

  • 2226 The Accumulator September 29, 2018, 6:15 pm

    Hmm, now this is weird but as best I can see, iWeb aren’t charging you an extra 0.5% on fund trades. See this text under the ‘fund charges’ section of the pdf Jeff linked to:

    “If you invest in a fund, you will also pay Ongoing Charges and transaction costs to the fund manager each year for looking after the fund and buying and selling assets within the fund. This is taken from the value of the fund and the exact amount is listed in each fund’s documentation.”

    They seem to be letting you know that fund’s deduct transaction costs that don’t show up in the Ongoing Charges. This is true of all funds and not a cost of doing business at iWeb. If this is what iWeb mean by transaction costs then it’s an internal fund charge deducted directly from the fund’s returns. The 0.5% is also an estimate. Vanguard published a pdf of their transaction costs which were generally lower. 0.15% for a FTSE All-Share index fund, 0.08% – 0.13% for a LifeStrategy fund.

    iWeb are pretty unusual in even bringing this to their users’ attention.

    Ed – you directly pay 0.5% stamp duty on UK share purchases, not on fund or ETF purchases. So you’re not paying it on LifeStrategy purchases. Although, deep breath, Vanguard do when they buy UK shares – that cost would show up in the transaction costs.

  • 2227 Ivanopinion September 29, 2018, 6:15 pm

    Immediately before the 0.5% transaction cost, the factsheet says:
    “If you invest in a fund, you will also pay …transaction costs to the fund manager each year for … buying and selling assets within the fund. This is taken from the value of the fund and the exact amount is listed in each fund’s documentation.”

    I think this makes it clear. They are just saying that when the fund receives your cash they invest it and this means they incur transaction costs which are typically 0.5%, because if they buy UK equities or bonds stamp duty is 0.5%.

    The examples are confusing, because they do not clearly distinguish between the charges levied by iWeb as opposed to the fund.

  • 2228 PA September 29, 2018, 6:49 pm

    RE iWeb
    Under MiFid II I believe the KIID / KID documents should break out the costs in a clearer format although a number of fund/investment houses have not yet provided these. Not sure why iWeb as a platform would include it.
    Some KIID/KID I have seen have a specific entry for Transactions Costs which from the recent iWeb discussion sounds like the figure being discussed.

  • 2229 Charlie September 29, 2018, 8:56 pm

    Regarding 0.5% transaction charges, Halifax Share Dealing also show a similar message on their dealing page although it’s a little clearer than iWeb by the sounds of it:

    “Transaction cost : 0.5%
    We don’t have the exact transaction cost for this fund, so have used an industry average of 0.5%.”

    This refers to the ongoing charge associated with the fund. I’m not actually paying 0.5% OCF: I pay what’s listed on the Vanguard factsheet. Slightly odd that they call it a ‘transaction’ cost, but I do not see an extra 0.5% in broker fees. Like others before me I assume the reason this is displayed must be related to regulations, but I questions how useful it is to show ‘imaginary’ costs in place of actual costs.

  • 2230 Robbo September 29, 2018, 9:34 pm

    @ Charlie, for clarity the transaction cost is not the same as the ongoing charge, it is separate and an additional charge. Most fund documents don’t (yet) show the transaction cost so it not clear how much it is which is why iWeb show this ‘industry average’. But I also wonder how helpful this is as it just seems to cause more confusion.

  • 2231 Nick September 29, 2018, 10:06 pm

    I’m considering transferring my ISA from CSD to iWeb due to fees. I have experience of both already (my ISA is with CSD; my wife’s is with iWeb). I have already paid money into the CSD ISA this year, so will need to transfer the whole amount to iWeb if I go through with this.
    What happens about adding funds while an “in specie” transfer is in progress? Can I add funds to the new iWeb ISA once I’ve requested the transfer to start, or do I have to wait until the transfer has completed?

  • 2232 The Accumulator September 30, 2018, 9:10 am

    Vanguard define transaction costs as:

    “the charges incurred within the fund for buying and selling the underlying investments. It includes dealing costs and taxes.”

    I guess the uneven response from the industry is because they’re still trying to work out what their disclosure obligations are under the MiFID II rules. For clarity’s sake, these aren’t new costs, they were always incurred but rarely acknowledged – the sort of thing you can detect in a fund’s tracking difference.

  • 2233 eagleuk October 1, 2018, 8:57 am

    Re: Cavendish@TA
    Cavendish ISA was my first account after reading this blog.My account has now good amount of money and it’s all due to monevator.I have moved it to iweb this year as fees was being deducted from the sale of investments.The cavendish account holders use the fidelity website .The only difference is the fees which is lower than fidelity for smaller amounts.The minimum amount was 50 gbp via monthly savings plan (regular investments).The platform allows to change the funds, sell investments,hold cash and change/cancel monthly payments easily every month .If you want to buy outside the monthly savings with cash then the minimum amount was i think 800 or 1000 gbp .The etf’s available are not the gbp one and either they were in usd or euro denomination.I believe this way they make the commission in exchange rate.
    I have recently opened fidelity sipp as well to transfer the bestinvest sipp( small amount) .The fidelity may contribute towards the bestinvest leaving fees.This offer is not available through cavendish .

  • 2234 PJ October 1, 2018, 2:12 pm

    Currently with CavendishOnline.
    @TA minimum single contributions are currently £25, and £50 for monthly contributions. This changed recently with a website update from essentially no minimum for single contributions. So it’s still a good starting platform for those with small amounts to save.
    Slightly off topic, but relevant to small savings amounts, Cavendish do not allow transfers in of JISAs, so unless you start a JISA with them, there is no possibility to move it to them, as JISAs can’t be cashed in until 18, when they auto convert to a full ISA anyway.

  • 2235 The Accumulator October 1, 2018, 7:08 pm

    Thank you PJ and eagleuk. Much obliged!

  • 2236 Fremantle October 8, 2018, 2:40 pm

    New £25 quarterly fee for Bestinvest SIPPs announced

  • 2237 Player1 October 15, 2018, 9:26 pm

    As i read all terms before i sign up to any service and glad i did as if you want dividend income paid into your bank account with X-O this is only paid out 4 times a year (after you ask by email)!! with HL its ok ish 12 times a year and with IWEB its within days of each and every dividend just something to bear in mind if and when you do want income

  • 2238 Kraggash October 16, 2018, 9:28 am

    @Player1 – Just to add to your list, Fidelity and YouInvest both pay out monthly.

  • 2239 Jonny October 16, 2018, 11:11 am

    Perhaps slightly off-topic, but what are people’s thoughts on Hargreaves Lansdown’s new Active Savings offering?

    I’m already a HL customer wanting a fixed rate savings account, and am wondering if there is any reason *not* to use this as a platform to open a fixed rate account (assuming the rate can’t be beaten elsewhere).

    My motivation: to avoid going through the process of YET ANOTHER application with an external organisation.

  • 2240 AC81 October 16, 2018, 12:17 pm

    Does anyone know of any brokers who allow a general trading account in the name of a limited company, whose main trading company is not investment related?

    Thanks

  • 2241 Player1 October 16, 2018, 10:22 pm

    @Jonny HL savings is a good idea they are adding instant access accounts soon and more banks maybe signing up

  • 2242 FIRE v London October 16, 2018, 11:37 pm

    @AC81 – I use Interactive Brokers (IB) for my limited company, whose main trading is (for the moment) not investment related. Their core business is professional traders (e.g. small hedge funds) so they can take a Ltd company in their stride. I find them to be excellent, once you get used to their ‘pro’ approach. I did a bit of digging and so far as I can see most of the other obvious players (Selftrade, AJ Bell, Hargreaves) won’t offer trading accounts for Ltds, but Interactive Investor do (https://www.ii.co.uk/useful-forms/account-opening/); I use them for a SIPP and they work well too, albeit with a more ‘retail’ feel (and fee structure/capability set) than IB.

  • 2243 Snowman October 22, 2018, 11:55 am

    Alliance Trust Savings has been purchased by Interactive Investor, so expect future changes to platform charges in the coming months if this goes ahead.

    http://www.alliancetrustsavings.co.uk/investment-news/change-of-ownership-for-alliance-trust-savings.html

  • 2244 Vanguardfan October 22, 2018, 12:05 pm

    Oh poo. that is rubbish news. I have avoided II since several bad service mistakes a few years back. I’m also not comfortable with their expansion-by-takeover model for business growth.
    When they took over TDD, did they migrate the TDD customers onto II platform software and charging models? I’ll have to go back and look at all the old discussions about that on lemonfool…
    So the pool of flat fee brokers for funds narrows again…basically iWeb/Halifax now? And II on their mission to take over the world…

  • 2245 Ivanopinion October 22, 2018, 2:16 pm

    It is a worry, because they are getting close to being monopoly suppliers of fixed fee platform services. I suspect we will see fees jump higher.

    And it is getting harder to diversify holdings across different platforms, whilst avoiding the percentage fee brokers.

    On the other hand, I suspect scale is needed in order for these platforms to become profitable, so perhaps it would be better to have one big fixed fee platform that is profitable, rather than several that all go bust because they are too small.

  • 2246 Neverland October 23, 2018, 9:39 am

    It will be a cold day in hell before I keep any money with Interactive Investor

    Hands up who thinks their approach of buying a whole bunch of different execution only fund platforms and then integrating them onto a single system is going to result in anything other than misery for ATS customers?

    (Even before they jack the fees up…)

    I’m just going to pay the exit fees and get out

  • 2247 Ivanopinion October 23, 2018, 11:20 am

    @Neverland
    I agree that ATS customers should be concerned that the II takeover could mean poorer service.

    I guess it depends on what JC Flowers’ business plan is. They are throwing a lot of money at II, and they presumably hope to get a good return on their investment. That won’t happen if II provide such poor service that many of the customers they are expensively buying (GBP345 per customer) decide to switch to other platforms. So, if they have any sense, they should be making sure that II make big improvements in their service levels.

    …Or perhaps they are just relying on inertia meaning they will keep most customers, regardless of poor service.

  • 2248 Neverland October 23, 2018, 1:18 pm

    @Ivanonanon

    Its pity you can’t do a text search to find out exactly how many hits you would get of posts from people just in this comment thread complaining about interactive investor trying to do a platform migration (e.g. TD Securities)

    I reckon there would be at least fifty and several times more than any other provider, which kind of tell its own story

    You forget that they will be getting at least GBP 150 from every customer that leaves in exit fees, so nearly half what they paid

  • 2249 MrOptimistic November 2, 2018, 8:31 pm

    @linda. Presumably someone answered your question regarding Fidelity. They charge 0.25% on cash in a sipp. I asked them this sometime ago. I switched away.

  • 2250 Stephen Watson November 3, 2018, 10:41 am

    Yes thanks Mr optimistic. Fidelity are pretty useless at answering sipp questions in my experience. I was told by them both that they do and they don’t. I have just paid my second month’s fees and it seems they don’t. They are in the process of changing a few things. They used to pay interest on cash but now they will not. I just have 1 etf in my sipp and currently pay max charges of £45 per annum. Assuming they don’t change this it seems an absolute bargain. I used to be with AJBell and paid the max of £100 per annum but with Fidelity there are no charges once you start withdrawing from your pension. Customer service is diabolical though…

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