Interactive Investor cuts share and fund transaction costs from £7.99 to £5.99 as it battles low commission trading apps
- From September 1, standard transaction fee is £5.99
- The cost of transactions in non-US international equities will also be reduced to £5.99
- Customers will continue to receive their first transactions for free every month
The products in this article have been independently selected by This is Money’s specialist journalists. If you open an account with links marked with an asterisk, This is Money earns an affiliate commission. This should not affect our editorial independence.
DIY investing platform Interactive Investor has announced plans to lower standard transaction fees as competition among low-commission investing apps intensifies.
From September 1, standard online transaction fees for UK and US transactions will be reduced from £7.99 to £5.99 for ii’s standard Investor Plan* as well as his Pension Builder Sipp plan.
The discount also applies to members of ii’s Friends and Family service, who already benefit from a free plan.
But while investors will benefit from buying and selling investments more cheaply, their free trade credit they get each month with their subscription expires sooner – just one month instead of three.
Interactive Investor of Investment Platform Has Reduced Its Online Trading Fees
Customers with the Super Investor plan will see 40 percent in the cost of online transactions in non-US international equities from £9.99 to £5.99.
This comes after I lowered the trading fee in the US 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 stocks, ETFs and investment trusts.
Platforms like ii face increasing competition from robo-advice services, traditional DIY investment giants such as AJ Bell* and Hargreaves*, as well as the new breed of platforms like the free stock sharing app Free trade*.
Earlier this year bestinvest* announced it had cut some of its fees as part of a wider relaunch to attract more investors. It cut its share trading fees from £7.50 to £4.95 while battling other platform companies.
In 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 for free each month. However, starting next month, the expiration date of these free monthly transactions will be moved from 90 days to 31 days.
The Pension Builder plan does not come with a free monthly transaction.
Richard Wilson, CEO of ii, said: “We are continuously working to provide better value, choice and service to the UK retail investor. And with our standard trading fee now reduced to £5.99, our low-cost, simple, fixed-cost subscription service just got better.
“Our trading costs remain proudly impartial, with no preferential treatment for stocks, funds, investment trusts or ETFs, so the right choice is always what’s right for the client.
“Investors have no control over the markets, inflation or interest rates. But they can control their investment costs – and in 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 usually costs an extra £5 per month. This allows customers to gift customers a free subscription for up to five people.
Wilson added, “Reducing the cost of investment platforms 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 offers the best value for them.
“We know we can achieve very significant long-term savings as wealth grows through our retirement and investment accounts.”
Compare the best DIY investment platforms and stocks and shares Isa
Online investing 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 do-it-yourself investment platform, stocks and shares Isa or a general investment account, the range of options may seem overwhelming.
Each provider has a slightly different offering, charges more or less for trading or holding stocks, and gives access to a different offering of stocks, funds and mutual funds.
When weighing up the right one for you, it’s important to look at the service it offers, along with administration and transaction fees, plus any other additional costs.
To help you compare investment accounts, we’ve put together the facts and put together a comprehensive guide to choosing the best and cheapest investment account for you.
We highlight the key players in the table below, but encourage you to do your own research and consider the points in our full guide linked here.
>> This is Money’s full guide to the best investment platforms and Isas
The platforms below have been independently selected by the specialized journalists of This is Money. If you open an account with links marked with an asterisk, This is Money earns an affiliate commission. This should not affect our editorial independence.
|Administration costs||Notes on Cost||fund trading||Standard Stock, Trust, ETF Trading||Regular investing||Dividend reinvestment|
|AJ Bell YouInvest*||0.25%||Max £3.50 per month for stocks, trusts, ETFs.||£1.50||£9.95||£1.50||£1.50 per offer||More detail|
|bestinvest*||0.40%||Account fee reduced to 0.2% for turnkey investments||Free||£4.95||N/A||N/A||More detail|
|Charles Stanley Direct||0.35%||No platform fee on shares on a trade in that month and an annual maximum of £240||Free||£11.50||N/A||N/A||More detail|
|Fidelity*||0.35% on funds||€45 to €7,500. Max £45 per annum for stocks, trusts, ETFs||Free||£10||Free Money £1.50 Shares, Trusts ETFs||£1.50||More detail|
|Hargreaves Lansdown*||0.45%||Capped at £45 for stocks, trusts, ETFs||Free||£11.95||£1.50||1% (£1 min, £10 max)||More detail|
|Interactive Investor*||£119.88 as £9.99 per month||£7.99 per month back in trade credit||£7.99||£7.99||Free||£0.99||More detail|
|iWeb||€ 100 one-time||£5||£5||N/A||2%, maximum £5||More detail|
|Free trade*||Free for standard account £3 month for Isa||Freetrade Plus with more investment is £9.99/month incl. Isa fee||No money||Free||N/A||N/A||More detail|
|Forefront||0.15%||Only Vanguard Funds||Free||Free Vanguard ETFs Only||Free||N/A||More detail|
|(Source: ThisisMoney.co.uk June 2022. Annual administration fee, can be monthly or quarterly)|