interactive investor charges a fixed platform fee together with one of the lowest trading fees among the mainstream platforms. There are over 40,000 investments to choose from, but it’s not possible to trade in fractional shares, cryptocurrency or foreign exchange.
Pros
- Flat platform fee
- Extensive range of investments
- Excellent research offering
- Pays interest on cash balances
Cons
- Platform fees expensive for small portfolios
- High trading fee for funds
- One of higher foreign exchange fees on non-UK shares
All your investments in one place
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interactive investor: a round up
Although interactive investor charges a share trading fee, investors receive one free trade per month under the Investor Plan and two free monthly trades under the Super Investor Plan. It’s also possible to hold up to nine foreign currencies in their account to reduce foreign exchange fees.
Investors have a range of over 40,000 investments to choose from, including shares, funds, investment trusts and exchange-traded funds (ETFs). However, it is not possible to trade in fractional shares, cryptocurrency or foreign exchange.
interactive investor pays interest (between 0.5% and 2.0% depending on the type of account and balance) on uninvested cash balances on trading accounts, individual savings accounts (ISAs) and Self-Invested Personal Pensions (SIPPs).
interactive investor does not currently provide a community or social trading forum for investors.
What plans are available?
interactive investor offers three main types of plan:
- Investor Essentials (£4.99 per month): includes a trading account and ISA for portfolios of up to £30,000. UK and US trades cost £5.99 (with no free monthly trade)
- Investor (£9.99 per month): also includes Junior ISAs. UK and US trades cost £5.99 but investors receive one free trade per month
- Super Investor (£19.99 per month): includes everything in the Investor plan but investors pay a lower fee (£3.99) for UK and US trades and receive two free trades per month.
Investors wanting to open a SIPP can subscribe to the Pension Builder plan at £12.99 a month. Alternatively, investors subscribing to the Investor and Super Investor plans can add a SIPP for an additional cost of £10 a month.
interactive investor also offers a ‘friends and family’ scheme, allowing customers to pay an extra fee of £5 a month to provide a free subscription to the Investor Essentials plan for up to five people. This option is free under the Super Investor plan.
What are the investment choices?
interactive investor offers the choice of 40,000 investments, including:
- Shares from North America, Europe and Asia-Pacific
- Over 3,000 funds
- Over 1,000 ETFs
- Over 600 investment trusts
What else does it offer?
Ready made portfolios: interactive investor offers five ready-made portfolios, selected and managed by Morningstar, its research partner. Investors can choose from three growth-focused and two income-focused portfolios.
The active portfolios contain actively-managed funds which aim to outperform the market but charge a higher annual fee. The passively-managed funds are a lower cost option based on index-tracking funds. It also offers a sustainable/ethical growth-focused portfolio.
Education: interactive investor offers one of the most extensive educational offerings amongst the platforms, both in terms of market commentary and investing guides.
Investors have access to a number of videos and podcasts on investing topics, together with live, interactive masterclasses with investing experts. It also produces a depth-and-breadth of market analysis, covering shares and funds, as well as market and sector trends.
Apps: interactive investor’s investing app is available on both Android and iOS devices, including automated trading tools, such as limit orders and stop losses.
Security: interactive investor is regulated by the Financial Conduct Authority (FCA) in the UK. The company uses third party banks and custodians to hold customers’ funds, which provides protection for customers in the event that the company went into liquidation.
What about fees and charges?
interactive investor charges the following fees:
- Share trading fee: £5.99 for UK shares and funds and US shares (reduced to £3.99 for the Super Investor Plan) and £19.99 for other international shares. Investor and Super Investor plan customers receive one and two free monthly trades respectively
- Platform fee (monthly): £4.99 for Investor Essentials, £9.99 for Investor, £19.99 for Super Investor and £12.99 for Pension Builder. Additional monthly fee of £10 for a SIPP (under the Investor and Super Investor Plans)
- Foreign exchange fee on non-sterling trades: 1.5% (for transactions up to £25,000).
Who should choose interactive investor?
interactive investor’s fixed platform fee may attract investors with higher-value portfolios – as most other mainstream platform providers charge on a percentage basis.
And – with more than 40,000 investments to choose from – it’s also likely to suit those with a wide investment scope. Investors can find the most suitable plan for their needs from low-cost Essentials plan to the premium Super Investor plan. It also has an extensive research and educational offering.
