Investment Platform Fee Comparison

Platforms charge three types of fees: platform/custody fees (annual percentage or flat monthly fee), dealing fees (per-trade cost when you buy or sell), and FX fees (when converting GBP to foreign currencies for non-GBP assets). Platform fees differ by asset type — funds (OEICs) often have uncapped percentage fees, while ETFs and shares typically have caps. For example, AJ Bell charges 0.25% on funds (uncapped) but caps ETF/share custody at £42/year. This calculator models these differences — adjust the portfolio split sliders to see how your asset mix affects total costs.

It depends on your portfolio size, asset mix, and trading frequency. For small portfolios under £10K: Trading 212 (£0) or InvestEngine (£0 for ETFs). For medium £10K-50K with mostly funds: Vanguard (0.15%, £375 cap). For medium with ETF/shares: AJ Bell (0.25%, £42 cap on shares). For large portfolios £50K+: Interactive Investor flat fee (£5.99/mo) beats percentage-based platforms. For frequent traders: IG or Trading 212 (£0 dealing). Use this calculator with your actual portfolio split to find your specific cheapest option.

Funds (OEICs/unit trusts) and ETFs/shares have different custody costs for platforms. Funds are typically held on a single platform ledger, while ETFs and shares sit on exchange settlement systems (CREST). Most platforms charge the same headline rate for both but apply different caps: AJ Bell caps ETF/share custody at £42/year but leaves fund fees uncapped. Vanguard caps both at £375. HL caps ETF/shares at £150/year but leaves fund fees uncapped. This calculator models these differences — adjust the portfolio split sliders to see the impact on each platform.

When you buy or sell non-GBP assets (US stocks, global ETFs not hedged to GBP), platforms charge an FX conversion fee. Rates range from 0% (InvestEngine for GBP ETFs) to 0.99% (HL). On a £50K portfolio with 50% in US stocks and 3 trades/month: Trading 212 (0.15%) = ~£27/year, HL (0.99%) = ~£178/year. FX fees apply per trade, not as an annual holding charge. UK-only investors in GBP-denominated funds pay zero FX fees. Set the 'International %' slider above to model your exposure — funds are assumed GBP-denominated and FX only applies to the ETF/share portion.

Percentage fees (Vanguard 0.15%, HL 0.35%) are cheaper for small portfolios. Flat fees (Interactive Investor £5.99/month, Freetrade £5.99/month) become cheaper as your portfolio grows. The crossover is typically £30-70K depending on asset mix. HL at 0.35% costs £175/year on £50K vs ii at £71.88 flat — that's £103 difference. But HL includes extensive research and tools that ii charges extra for. This calculator ranks all 8 platforms by total annual cost — the cheapest option for your exact portfolio size, split, and trading pattern is highlighted in green.

Yes — all UK platforms compared here are FCA-regulated with FSCS protection up to £85,000 on investments. Trading 212 additionally spreads uninvested cash across partner banks for up to £1 million protection. Zero-commission platforms make money via: FX fees (0.15% on non-GBP trades), CFD trading (not covered here), securities lending, and premium upgrades. None of these revenue streams affect your invested assets or create hidden custody charges. For long-term buy-and-hold investors, they're perfectly safe and genuinely free for GBP-denominated holdings.

Most platforms now have low or zero minimums. Trading 212: £1. Freetrade: £1. IG: £0. InvestEngine: £100. Vanguard: £500 lump sum or £100/month. HL: £100 or £25/month regular investing. You don't need thousands to start — £100/month at 7% average returns becomes £24,000 after 10 years. The key is consistency and starting early, not a large initial sum. Platforms like Trading 212 and InvestEngine with zero fees and low minimums are ideal for building the habit of regular investing from scratch.

Yes — ISA transfers are tax-free if done through the official transfer process (your new provider handles it). Since April 2024, you can hold multiple ISAs of the same type opened in different tax years, and transfer between them freely. The FCA requires transfers to complete within 30 days. Exit fees were banned for ISAs, though some SIPP providers still charge them. Never withdraw your ISA to cash and re-deposit into a new ISA — that loses the tax wrapper. Always use the formal ISA transfer service.