Products featured in this article are independently selected by This is Money’s specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.
DIY investing platform Interactive Investor has announced plans to cut its standard dealing charges as competition among low commission investing apps heats up.
From 1 September, the standard online dealing charge for UK and US trades will be cut from £7.99 to £5.99 for ii’s standard Investor plan* as well its Pension Builder Sipp plan.
The reduction will also apply to members of ii’s Friends and Family service, who already benefit from a free subscription.
But while investors will benefit from cheaper buying and selling of investments, their free trading credit given each month with their subscription will expire sooner – lasting just one month instead of three.
Investment platform interactive investor has slashed its online dealing charges
Customers on the Super Investor plan will see a 40 per cent in the cost of online trades in non-US international shares from £9.99 to £5.99 too.
This comes after ii cut US trading costs from £4.99 to £3.99 earlier this year.
The platform says the new charges widen the gap with other platforms when trading UK and US shares, ETFs and investment trusts.
Platforms like ii are facing increased competition from robo-advice services, traditional DIY investing giants like AJ Bell* and Hargreaves*, as well as the new breed of platforms like free share dealing app Freetrade*.
Earlier this year Bestinvest* announced it had cut some of its fees as part of a wider relaunch to attract more investors. It slashed its share-trading fees from £7.50 to £4.95 as it battles other platform businesses.
By comparison AJ Bell and Hargreaves charge £9.95 and £11.95, respectively.
Customers using ii’s Investor and Super Investor plans will also continue to receive their first trades free each month. However from next month the expiry date on these free monthly trades will move from 90 days to 31 days.
The Pension Builder plan doesn’t come with a free monthly trade.
Richard Wilson, CEO of ii, said: ‘We work constantly to bring better value, choice and service to the UK retail investor. And with our standard trading charge now reduced to £5.99, our great value simple fixed fee subscription service just got even better.
‘Our trading charges remain proudly impartial, with no preferential treatment for shares, funds, investment trusts or ETFs so the right choice is always what is right for the customer.
‘Investors can’t control the markets, inflation or interest rates. But they can control their investment costs – and over the long run the savings can be huge.’
The ii Investor and Super Investor plans come with as many free junior ISAs as customers have children. Super Investor also includes a free subscription to the Friends and Family service, which is usually an extra £5 a month. It allows customers customers to gift a free subscription for up to five people.
Wilson added: ‘Cutting investment platform costs is a simple, effective and reliable way to get the most out of your investments. We encourage investors to compare platforms and find the service that delivers the best value for them.
‘We know that ii can deliver very substantial savings over the long-term as wealth grows through our pension and investment accounts.’
Compare the best DIY investing platforms and stocks & shares Isa
Investing online is simple, cheap and can be done from your computer, tablet or phone at a time and place that suits you.
When it comes to choosing a DIY investing platform, stocks & shares Isa or a general investing account, the range of options might seem overwhelming.
Every provider has a slightly different offering, charging more or less for trading or holding shares and giving access to a different range of stocks, funds and investment trusts.
When weighing up the right one for you, it’s important to to look at the service that it offers, along with administration charges and dealing fees, plus any other extra costs.
To help you compare investment accounts, we’ve crunched the facts and pulled together a comprehensive guide to choosing the best and cheapest investing account for you.
We highlight the main players in the table below but would advise doing your own research and considering the points in our full guide linked here.
>> This is Money’s full guide to the best investing platforms and Isas
Platforms featured below are independently selected by This is Money’s specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.
| Admin charge | Charges notes | Fund dealing | Standard share, trust, ETF dealing | Regular investing | Dividend reinvestment | ||
|---|---|---|---|---|---|---|---|
| AJ Bell YouInvest* | 0.25% | Max £3.50 per month for shares, trusts, ETFs. | £1.50 | £9.95 | £1.50 | £1.50 per deal | More details |
| Bestinvest* | 0.40% | Account fee cut to 0.2% for ready made investments | Free | £4.95 | n/a | n/a | More details |
| Charles Stanley Direct | 0.35% | No platform fee on shares if a trade in that month and annual max of £240 | Free | £11.50 | n/a | n/a | More details |
| Fidelity* | 0.35% on funds | £45 fee up to £7,500. Max £45 per year for shares, trusts, ETFs | Free | £10 | Free funds £1.50 shares, trusts ETFs | £1.50 | More details |
| Hargreaves Lansdown* | 0.45% | Capped at £45 for shares, trusts, ETFs | Free | £11.95 | £1.50 | 1% (£1 min, £10 max) | More details |
| Interactive Investor* | £119.88 as £9.99 per month | £7.99 per month back in trading credit | £7.99 | £7.99 | Free | £0.99 | More details |
| iWeb | £100 one-off | £5 | £5 | n/a | 2%, max £5 | More details | |
| Freetrade* | Free for standard account £3 month for Isa | Freetrade Plus with more investments is £9.99/month inc. Isa fee | No funds | Free | n/a | n/a | More details |
| Vanguard | 0.15% | Only Vanguard funds |
Free | Free only Vanguard ETFs | Free | n/a | More details |
| (Source: ThisisMoney.co.uk June 2022. Admin charges quoted annually, may be monthly or quarterly) |
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