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iWeb: Costly for international trades and no mobile app, but no annual fees makes it cheap for UK stocks and funds

Insiders score

infoMore info
This is the score our team have awarded the platform based on our own personal experiences and other important factors, such as fees and ease of use.

3.0out of 5

iWeb is part of Lloyds Banking Group, which also owns Halifax, Bank of Scotland and Schroders Personal Wealth. It is an online execution-only share dealing service aimed at those who know what they are doing, but looking for simplicity and the best possible price.

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By Clare West

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3.0out of 5

Clare's view

The Verdict

With more than £5.17 billion of assets under administration, iWeb (owned by Lloyds Banking Group) is a well-established execution-only investment platform. Its aims to make investing as straight-forward as possible, are largely achieved with a platform that takes away unnecessary complexity, but there's no mobile app! Making my life simple as an investor in 2024 absolutely has to include giving me the option to login via app.

IWeb offers three accounts: a Stocks and Shares ISA, a Share Dealing Account and a Self-Invested Personal Pension (SIPP), however, the SIPP is currently closed to new applicants which is a little concerning. There's a better-than-usual selection of assets for a 'simple' platform: 2,500+ funds, 8000+ stocks, plus ETFs and investment trusts. You usually find that the trade-off with platforms concentrating on simplicity is a lack of choice, but there are thousands of options here, although the assets over cover seven UK and international markets, which isn't the widest reach.

On costs, there are no service fees which is good news, and no dealing fees on international trades which is also good news. In fact, if you have a large portfolio and concentrate on UK assets, this could be a very cheap home for your portfolio. But - and it's a big but - you're paying a very high 1.5% FX rate if you trade international assets. That adds up, especially if you're trading often, or with large amounts on international stocks. There's also an off-putting £100 upfront fee for onboarding (although there's currently a welcome offer that means this fee is suspended). If you are a buy-and-hold investor, not planning to trade often, then there's savings to be made here with the lack of a service fee, but trading internationally will bring your costs up and puts iWeb in the upper price range for UK platforms.
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quote

Pros

  • No annual fees
  • Security of being part of Lloyds Banking Group
  • No inactivity fees
  • Strong selection of funds, shares, ETFs and investment trusts
  • Invest through an ISA or general trading account
  • No dealing fees on international trades
  • Cheap for large portfolios holding UK assets
quote

Cons

  • Not accepting new applications for SIPPs
  • No mobile app
  • Very high FX rate of 1.5% on all international investment trades
  • No interest paid on cash balances held within an ISA / general trading account
  • £5 per trade on all UK stocks, funds, ETFs, investment trusts, and bonds
  • Not a flexible ISA
  • No fractional shares
  • Verdict3.0
  • Fees2.5
  • Trading Platform3.5
  • Research3.5
  • Safety
  • Education1.0
  • Customer Service4.0
  • Corporate Actions3.5

Clare's view

Who do I recommend it for?

arrow-down-orangeRead More
quote

Pros

  • No annual fees
  • Security of being part of Lloyds Banking Group
  • No inactivity fees
  • Strong selection of funds, shares, ETFs and investment trusts
  • Invest through an ISA or general trading account
  • No dealing fees on international trades
  • Cheap for large portfolios holding UK assets
quote

Cons

  • Not accepting new applications for SIPPs
  • No mobile app
  • Very high FX rate of 1.5% on all international investment trades
  • No interest paid on cash balances held within an ISA / general trading account
  • £5 per trade on all UK stocks, funds, ETFs, investment trusts, and bonds
  • Not a flexible ISA
  • No fractional shares
  • arrowVerdict
    3.0
  • arrow Fees:
    2.5
  • arrowTrading Platform:
    3.5
  • arrowResearch:
    3.5
  • arrowSafety:
    0
  • arrowEducation:
    1.0
  • arrowCustomer Service:
    4.0
  • arrowCorporate Actions
    3.5

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Updates

Who do I recommend iWeb for?


iWeb could work for you if you are a buy-and-hold investor as you'll avoid running up expenses on the relatively high trading and FX fees, and benefit from the lack of service fees.

For large portfolio holders wanting to hold UK assets, iWeb is particularly good value.

Investors with large portfolios who want to regularly trade international assets will find this a very expensive platform, however.

Accounts and assets


Accounts

iWeb says it offers the chance to invest through:

  • A Sometimes called an investment ISA, a stocks and shares ISA is an individual savings account that allows you to invest in shares, unit trusts, investment funds, and bonds. You will not need to pay tax on any income or capital gains earned on investments within an ISAstocks and shares ISAinfo
  • A A self-invested personal pension (SIPP) is a type of private pension that allows you to control the specific investments that make up your pension fundself-invested personal pension (SIPPinfo
  • A General investment account (GIA) is an account designed to provide access to investments. You may be liable for tax on any income or capital gains earned within a general investment account but this can be a useful vehicle for anyone who has maxed out their ISA allowancegeneral investment accountinfo

However, they're not currently accepting new applications for their SIPP account, so you cannot now use iWeb to save in the most tax-efficient way for retirement.

iWeb's ISA is not a flexible ISA, either, which means if you remove money from your ISA and then repay it back in, it'll count as two separate deposits and eat into your annual allowance twice.

If flexibility within your ISA is important to you, take a look at our Best Stocks and Shares ISA page.

Assets

iWeb offers access to a large selection of investable assets from seven exchanges across the world:

  • 4,800+ stocks
  • 3,100+ funds
  • 690 ETFs
  • 279 investment trusts
  • Bonds and gilts

There are no ready-made portfolios available, however, so you'll need to feel confident choosing and managing your own portfolio with this provider.

iWeb also doesn't allow Fractional shares are portions of shares (or ETFs) that are smaller than one whole share. They are designed to make ownership of large, expensive shares more accessible. fractional share investinginfo, which is a shame as it makes it impossible for investors with smaller budgets to acquire a slice of big name companies.

Fee comparisons


FAQs

Yes, iWeb is safe. It is owned by Lloyds Banking Group, one of the largest and safest banks in the world. It is regulated by the FCA and eligible deposits are covered by the FSCS, providing protection up to £85,000 per person.

The lack of service fees makes iWeb a cheap place to hold assets, but not to trade. Dealing fees are a high £5 per trade and FX fees for buying and selling international assets are some of the highest in the market at 1.5%

iWeb used to offer a SIPP but it is no longer open to new applicants. Current SIPP customers can continue to invest without issue.

Ask the Insiders


Have a question about iWeb that we haven't covered? Ask it here and we will get back to you as soon as possible!

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