The Saving Tool UK 2024 Guide to UK Stocks and Shares ISA Providers
Investing in a Stocks and Shares ISA (Individual Savings Account) allows UK residents to grow their savings tax-efficiently, with the added benefit of shielding any gains or income from income tax and capital gains tax. In the 2023/24 tax year, you can invest up to £20,000 in an ISA, making it an essential tool for long-term financial growth. However, not all ISAs are created equal, so selecting the right provider is key!
Factors to consider when choosing a S&S ISA Provider:
- Fees are a critical factor to compare, as both platform fees (for account management) and fund fees (the ongoing costs of your investments) can erode your returns, particularly over the long term by reducing the power of compounding. These can vary depending on funds you invest in, but in this article we'll cover the best ISA rates
- Most platforms will set a minimum investment amount, so ensure you pick a provider that fits with your investment capital
- The variety of investment options offered by a provider—whether it’s individual shares, diversified funds, or managed portfolios—will determine how well you can tailor your investments to your risk appetite and goals
- A quality mobile app helps, and may be important to you
This guide explores the top UK S&S ISA providers in 2024, focusing on these key factors to help you make an informed choice.
1. Vanguard
Fees:
- Platform (aka “account”) Fee: 0.15% per year, capped at £375 for accounts over £250k
- Fund Fees: Low-cost index funds and ETFs with an average ongoing charge of around 0.20%.
- Total Cost: Typically around 0.35% per year, depending on your investment choices.
Minimum Investment:
- Lump Sum: £500
- Monthly Investment: £100
Investment Options:
- Vanguard offers a range of index funds and ETFs (Exchange-Traded Funds), focusing on passive investments. There’s a selection of ready-made portfolios through the Vanguard LifeStrategy funds, which are ideal for hands-off investors.
Mobile App:
- Yes - Vanguard finally launched a beta mobile app in 2024 that is straightforward and easy to use
Summary:
- Vanguard is best for cost-conscious investors who prefer passive investing and are comfortable with a limited but solid selection of funds. The platform fee cap is particularly beneficial for those with larger portfolios.
2. Hargreaves Lansdown
Fees:
- Platform Fee: 0.45% per year on the first £250,000, 0.25% on the next £750,000, and 0.10% on amounts above £1 million. 0% on fund value of £2m.
- Fund Fees: Varies widely depending on the fund
- Additional Charges: £11.95 per trade for shares, ETFs, and investment trusts.
Minimum Investment:
- Lump Sum: £100
- Monthly Investment: £25
Investment Options:
- Hargreaves Lansdown offers a broad range of investment options, including thousands of funds, shares, ETFs, and investment trusts. Their Wealth Shortlist provides guidance on top fund choices.
Mobile App:
- Yes, the app is highly rated and offers extensive functionality, including research tools and real-time trading.
Summary:
- Hargreaves Lansdown is ideal for investors seeking a comprehensive platform with a wide range of investment choices and robust research tools. The platform is suitable for both beginners and more experienced investors, though its fees are on the higher side.
3. Fidelity
Fees:
- Platform Fee: 0.35% per year on investments up to £250,000, 0.20% on amounts above £250,000.
- Fund Fees: Typical ongoing charge of around 0.50%.
- Additional Charges: £10 per trade for shares and ETFs.
Minimum Investment:
- Lump Sum: £1,000
- Monthly Investment: £25
Investment Options:
- Fidelity offers a wide range of funds, shares, ETFs, and ready-made portfolios. They also provide access to financial advice and guided investment services.
Mobile App:
- Fidelity’s mobile app is well-regarded, offering comprehensive features for managing investments on the go.
Summary:
- Fidelity is suitable for those who want a wide selection of investment options combined with reasonable fees. The platform's guided investment services and financial advice options make it a good choice for investors who may need some extra help in managing their portfolios.
4. Nutmeg
Fees:
- Platform Fee: 0.75% per year for portfolios up to £100,000, reducing to 0.35% for amounts above £100,000.
- Fund Fees: Average of 0.19% for managed portfolios.
- Total Cost: Typically between 0.94% and 1.14% per year, depending on the portfolio size.
Minimum Investment:
- Lump Sum: £500
- Monthly Investment: £100
Investment Options:
- Nutmeg specializes in fully managed, fixed allocation, and socially responsible portfolios. The platform uses a mix of passive ETFs and actively managed funds.
Mobile App:
- Yes, Nutmeg’s app is user-friendly and designed with a modern interface, making it easy to manage your ISA on the go.
Summary:
- Nutmeg is a great option for investors who prefer a hands-off approach with professional portfolio management. It’s particularly attractive to those interested in ethical investing, though the fees are higher than those of self-managed options.
5. Interactive Investor
Fees:
- Platform Fee: Fixed fee of £4.99 per month for the Investor Essentials plan, £11.99 for the Investor plan, and £19.99 for the Super Investor plan.
- Fund Fees: Varies by fund but typically around 0.50%.
- Additional Charges: £3.99 per trade, with some free trades included depending on the plan.
Minimum Investment:
- Lump Sum: £100
- Monthly Investment: £25
Investment Options:
- Interactive Investor offers a wide range of investment options, including funds, shares, ETFs, and investment trusts. The platform's fixed fee model is particularly appealing to investors with larger portfolios.
Mobile App:
- Yes, Interactive Investor’s app is functional, though some users find it less intuitive compared to competitors.
Summary:
- Interactive Investor is best suited for investors with larger portfolios due to its flat fee structure, which becomes cost-effective as your investments grow. It also offers a broad range of investment options, making it suitable for more experienced investors.
6. AJ Bell
Fees:
- Platform Fee: 0.25% per year on funds, with a cap of £3.50 per month for shares, ETFs, and investment trusts.
- Fund Fees: Typically around 0.50%.
- Additional Charges: £5 per trade for shares, ETFs, and investment trusts, reducing to £3.50 if you placed 10 or more trades in the previous month.
Minimum Investment:
- Lump Sum: £500
- Monthly Investment: £25
Investment Options:
- AJ Bell provides access to a wide range of funds, shares, ETFs, and ready-made portfolios. The platform also offers model portfolios for investors looking for simplified choices.
Mobile App:
- AJ Bell’s app is well-rated and offers all the essential features for managing your investments.
Summary:
- AJ Bell is a good choice for cost-conscious investors, especially those with smaller portfolios or those looking for low trading fees. It’s also suitable for investors seeking a mix of self-directed and guided investment options.
7. Lloyds Bank
Fees:
- Platform Fee: Fixed £40 per year.
- Fund Fees: Average ongoing charge of around 0.50%.
- Additional Charges: £8.00 per trade (8+ traders per quarter) or £11.00 per trade (reduced to £10 for Premier/Private Banking customers)
Minimum Investment:
- Lump Sum: £500
- Monthly Investment: £50
Investment Options:
- Lloyds Bank offers a straightforward range of funds and shares, with a focus on simplicity and ease of use. The platform is integrated with Lloyds Bank's other financial services.
Mobile App:
- Yes, the app is integrated with Lloyds Bank’s banking services, making it convenient for existing customers.
Summary:
- Lloyds Bank is a solid option for those who prefer to keep their investments with a traditional bank, especially if they are already Lloyds customers. The fees are competitive, though the range of investment options is more limited compared to specialist platforms.
Comparison
| Provider | Platform Fee | Fund Fees | Additional Charges | Minimum Investment (Lump Sum / Monthly) | Investment Options | Mobile App |
|---|---|---|---|---|---|---|
| Vanguard | 0.15% per year (capped at £375) | 0.20% average | N/A | £500 / £100 | Index funds, ETFs, LifeStrategy funds | Yes, straightforward and easy to use |
| Hargreaves Lansdown | 0.45% up to £250k, 0.25% on next £750k, 0.10% above £1M | Varies widely | £11.95 per trade for shares, ETFs, and investment trusts | £100 / £25 | Wide range of funds, shares, ETFs, investment trusts, Wealth Shortlist guidance | Yes, highly rated with extensive features |
| Fidelity | 0.35% up to £250k, 0.20% above £250k | 0.50% typical | £10 per trade for shares and ETFs | £1,000 / £25 | Wide range of funds, shares, ETFs, ready-made portfolios, financial advice services | Yes, comprehensive features |
| Nutmeg | 0.75% up to £100k, 0.35% above £100k | 0.19% average for managed portfolios | N/A | £500 / £100 | Managed portfolios, fixed allocation, socially responsible options | Yes, user-friendly and modern interface |
| Interactive Investor | Fixed £4.99 to £19.99 per month depending on plan | Typically around 0.50% | £3.99 per trade, with some free trades depending on plan | £100 / £25 | Wide range of funds, shares, ETFs, investment trusts | Yes, functional but less intuitive |
| AJ Bell Youinvest | 0.25% on funds, capped at £3.50/month for shares/ETFs | Typically around 0.50% | £5 per trade, £3.50 if 10+ trades in the previous month | £500 / £25 | Wide range of funds, shares, ETFs, ready-made portfolios, model portfolios | Yes, well-rated and feature-rich |
| Lloyds Bank | Fixed £40 per year | Around 0.50% average | £8.00 per trade (8+ traders per quarter), £11.00 otherwise | £500 / £50 | Straightforward range of funds and shares, integrated with Lloyds Bank financial services | Yes, integrated with Lloyds Bank services |
Making Your Choice
Selecting the right Stocks and Shares ISA provider is a crucial step in your investment journey. Vanguard stands out for its low-cost, passive investment options, making it an excellent choice for those focused on minimizing fees. However, the best provider ultimately depends on your individual needs.
Hargreaves Lansdown offers extensive investment options and research tools for more hands-on investors, while Nutmeg’s managed portfolios are ideal for those seeking a guided approach. Interactive Investor’s flat fee structure benefits larger portfolios, and AJ Bell and Fidelity provide a balanced mix of cost and flexibility. Lloyds Bank might appeal to those who prefer the familiarity of a traditional bank. By weighing the fees, investment options, and features that matter most to you, you can confidently choose the ISA provider that aligns with your financial goals in 2024.
