The cost of using an investment platform in the UK can vary depending on your specific needs and investment preferences. When looking for the cheapest investment platform in the UK, consider the following factors that can affect costs:
1. Trading Fees: Different platforms may charge varying fees for buying and selling investments, such as stocks, ETFs, and funds. Some platforms offer commission-free trading for certain assets, while others charge a flat fee or a percentage of your trade.
2. Account Fees: Some investment platforms charge ongoing account fees, which can include administration or management fees. These fees can be a fixed amount or a percentage of your assets under management.
3. Fund Fees: If you plan to invest in mutual funds or exchange-traded funds (ETFs), be aware of the platform's fund charges. These can include ongoing fund management fees and ongoing platform fees specific to holding funds.
4. Other Charges: Look out for additional charges, such as inactivity fees, account closure fees, or foreign exchange fees if you plan to invest in international assets.
5. Platform Features: Consider whether you need advanced features or research tools. Some platforms may charge extra for premium services and research reports.
Here are a few investment platforms in the UK that are known for offering competitive pricing:
- Freetrade: Freetrade is known for its commission-free trading of stocks and ETFs. They offer a basic account for free, and a premium subscription for additional features.
- Trading 212: Trading 212 provides commission-free trading for a wide range of assets, including stocks, ETFs, and cryptocurrencies. They also offer an ISA account for tax-efficient investing.
- Interactive Investor: Interactive Investor offers a flat monthly fee pricing structure, which can be cost-effective for investors with larger portfolios. They provide access to a wide range of investments and research tools.
- Hargreaves Lansdown: While Hargreaves Lansdown is not the cheapest option, they offer a broad selection of investment choices and research tools. They charge a percentage-based fee on your portfolio value.
- AJ Bell Youinvest: AJ Bell Youinvest offers a flat-fee structure with a variety of account options, including ISAs and SIPPs. They provide a range of investment choices and tools.
Please note that the pricing structures and fees of investment platforms may change over time, so it's essential to review the latest fee schedules and terms of service before opening an account. Additionally, the cheapest platform for you will depend on your individual investment strategy and preferences, so consider your specific needs when making a choice.