Top UK Investment Platforms Ranked and Compared: A Look at Their Differences
Top UK Investment Platforms for High-Volume Traders, Low Costs, and Excellent Customer Service
In the bustling world of UK fintech, there are at least ten main investment platforms catering to various needs. Among them, five platforms stand out for high-volume traders, best customer service, and low costs: Interactive Investor (ii), IG, Interactive Brokers, Freetrade, and Trading 212.
Interactive Investor (ii)
Interactive Investor (ii) is the best choice for high-volume and high-value portfolios due to its flat monthly fees, which become cheaper than percentage fees at scale. With a wide asset range and strong customer support, ii offers a wide array of 40,000+ investment options globally, including Junior ISA, SIPP, and a vast selection of shares, ETFs, and investment trusts.
IG
For those seeking low-cost, commission-free trading with excellent customer service and educational resources, IG is an excellent option. IG provides 12,000+ stocks for trading, along with extensive educational resources and a user-friendly mobile app.
Interactive Brokers
Interactive Brokers offers arguably the most cost-effective fees and advanced tools for professional or frequent high-volume traders. It boasts strong global market access, powerful trading tools, and robust security and regulatory compliance.
Freetrade
Freetrade and Trading 212 are excellent for low fees and ease of use but are less suited for very high-frequency traders and professional needs due to FX fees and limited features for advanced trading. Freetrade offers commission-free trading, a user-friendly app, and a strong community forum.
Trading 212
Trading 212 provides a large asset range including UK and US stocks, ETFs, and a highly-rated mobile app. It is highly rated for ease of use and is good for cost-conscious investors.
Choosing the right platform depends on your trading volume, portfolio size, asset preferences, and priority on customer support versus lowest costs. For high-volume traders with large portfolios, Interactive Investor and Interactive Brokers are top choices, while IG shines for service and educational support. For lowest costs and ease of use, Trading 212 and Freetrade lead in simple commission-free offerings.
Each platform has its unique pricing structure and features. For instance, ii offers multiple plans: Investor Essentials (£4.99/month for portfolios up to £50,000), Investor (£11.99/month for portfolios over £50,000 with one free monthly trade), and Super Investor (£19.99/month with four free monthly trades).
AJ Bell, another notable platform, offers dealing accounts, SIPPs, Junior ISAs, and Lifetime ISAs, with over 590,000 clients. Freetrade charges no trading fees but platform fees vary by plan: Basic, Standard, and Plus.
Bestinvest's platform fee is more competitive for investors wanting to hold US shares, at 0.2%, whereas for UK shares & funds it is 0.4% (on the first £250,000), tapering to 0% for higher amounts. IG charges no trading fee on US, UK, European, and Australian shares, with a foreign exchange fee of 0.7%. A platform fee is only charged for less frequent traders, which is £24 per quarter (£96 per year) if fewer than 3 trades per quarter. However, this is waived if you hold £15,000 in an IG Smart Portfolio account.
In conclusion, choosing the right platform is vital as fees and investment costs can significantly erode the value of portfolios over time. By understanding each platform's unique features and pricing, investors can make informed decisions to optimise their investment strategies.
Investing in a suitable platform is crucial for optimizing investment strategies, as fees and costs can significantly impact portfolio value over time. For instance, Interactive Investor stands out for its low flat monthly fees, especially beneficial for high-volume and high-value portfolios, while offering various investment options and strong customer support. On the other hand, IG stands out for its low-cost, commission-free trading, extensive educational resources, and excellent customer service. Thus, personal-finance decisions should consider the type and frequency of investing when choosing between available investment trusts such as Interactive Investor and IG.
