Best stocks and shares ISA

Antonia says

Unbeatable fees and fractional investing make this the most economical way to invest in fully diversified ETFs. While options are limited to ETFs, there are more than 590 to choose from and they offer a transparent and easy way to
enter the stock market.

Investors have the option of picking their own funds, or engaging in a fully managed portfolio.Automated investing and one-click portfolio rebalancing make this a hands-off approach.

All in all, a thumbs up from me for beginners looking for an uncomplicated way to start investing.

Use this if

• You are looking for a low-cost, simple way to invest
• You are happy to invest in ETFs

Fees

• No account fees
• No trading fees
• 0.25% for managed portfolios
• ETFs fees starting at 0.05% per year
• Average ETF charge for managed portfolios: 0.15% per year
• Market spreads average: 0.07% per year

ETF Investments

• ESG
• Thematics
• Dividend focused funds
• Emerging markets
• Small cap

Antonia says:

Not for the faint-hearted. This is a serious platform designed for experienced users.

Whilst there are a variety of platforms available to suit different types of traders, novices are unlikely to require the extensive range of assets or advanced tools and order functionality that can be found here.

That being said, those looking to build their trading knowledge may find the Trading Academy useful, and multiple currency accounts can work out cost-effective for trading on markets outside of the UK.

Use this if

• You are a serious trader or keen to learn how to become a trader
• You are looking to trade in a wide variety of assets on a cost-effective platform

Fees

• £3 per trade for Western European stocks
• No added spreads
• Minimum monthly activity fee of £3, unless this amount in generated in trades, in which case no fee will be charged
• 0.002% FX fees (minimum $2)
• £1 minimum deposit

Investments

• Stocks
• Options
• Futures
• Currencies
• Bonds
• Funds
• ETFs

Antonia says:

Zero commission trading coupled with low FX fees make this a very compelling option for cost-conscious investors.

The 5.2% interest on uninvested cash is the best rate we have come across to date. In addition you will get 1% cashback on all ISA deposits until April 30th 2024.

However, you will need to be confident picking and choosing your own investments here from a good selection of global stocks, ETFs, and commodities. One asset of note are the fractional shares on offer, not often found within an ISA due to the regulatory ambiguity. But this can help smaller investors gain access to big-name stocks that may otherwise have been unaffordable.

Use this if

You are a new investor looking for low-costs and an easy-to-use platform
You would like to learn more about investing using social trading

Fees

• Zero commission
• 0.15% FX fees
• Low spreads

Investments

• Global stocks
• ETFs
• CFDs (not within the ISA)
• Forex
• Commodities
• Indices

Antonia says

While this is often just considered an option for advanced traders, the Saxo Brown Advisory Ethical Selection ready-made portfolio outstripped all the competition in 2023 with a return of 18.39%, meaning it could be a smart place for less experienced traders to invest their money. However, I would caution you against placing too much value on historical returns.

Because Saxo also possesses a banking licence, they have top-tier regulations, making them one of the safest options.

There are almost 30,500 global stocks, ETFs, investment trusts, and bonds to choose from, all accessible from Saxo’s sophisticated platform.

Research is also good with live market updates and in-depth macro analysis.

Use this if

• You are an advanced or professional trader
• Your skills would benefit from extensive research

Fees

• Fees are variable according to trading size and account status. Frequent traders are rewarded with lower fees.
• Platinum or VIP fees are competitive.
• Buying and selling shares for new clients costs 0.10% per trade with an £8 minimum.

Investments

• Stocks
• Bonds
• ETFs
• Funds
• Managed portfolios

Antonia says

For a complete beginner lacking the confidence to pick and choose their own investments, Moneybox is a solid option, with the best-performing ISA for the last 5 years, according to our independent research. It’s also an excellent app if you are looking for somewhere to keep both your savings and investments as, at 5.11% AER, they currently have the leading rate on any easy access cash ISA – a position they have held for a number of years now.

There are also options here for picking your own investments from a selection of funds or rebalancing your suggested portfolio. And investors who historically find it difficult to save can utilise the round-ups and payday boosts on offer.

Use this if

• You are looking for the highest returns on a ready-made portfolio in an ISA.
• You are a beginner looking for an easy option.
• You would like the option to build your own portfolio.
• You don’t have a large starting pot and could utilise the money-saving tools to grow your portfolio.

Fees

• £1 subscription fee after the first 3 months
• 0.45% platform fee
• Annual fund provider costs 0.09% – 0.88%
• 0.45% FX fee for US stocks

Investments

• Ready-made portfolios
• US Stocks
• Fractional shares
• Tracker funds
• ETFs

Antonia says

An exceptionally low-cost option with the added security of being listed on the London Stock Exchange. AJ Bell is a reliable platform with a long-standing reputation for excellent customer service coupled with a wide range of investment options, including ready-made portfolios, which have just managed to outperform in the industry average.

This is a viable option for both beginners and more experienced investors; however, those who like to trade on a regular basis may find the shares trading fees prohibitive.

Use this if

• You are a buy-and-hold investor looking to hold shares, ETFs, and investment trusts.
• You have a large portfolio.

Fees

• Shares custody charge: 0.25% [ maximum £3.50 per month]

Funds custody charge:

• first £0 – £250,000 – 0.25%
• £250,000 to £500,000 – 0.10%
• Value over £500,000 – FREE

• Shares dealing – £5.00
• Ten or more share deals in the previous month – £3.50
• Fund dealing – £1.50

Investments

• Shares
• Funds
• Exchange-traded funds
• Investment trusts