As of 2021, over 3 million Brits hold a stocks and shares ISA account, and the amount locked in saw a £10 billion year-on-year increase. As the tax wrapper gains traction across the nation, we curated a list of the best stocks and shares ISA picks from the UK’s most trusted shares ISA providers.
Leading Investment Platforms with Stocks and Shares ISA Accounts
| Name | Score | Visit | Assets | Mobile | Commission | Security | Disclaimer | |
|---|---|---|---|---|---|---|---|---|
 | 9.8 | Visitplus500.com | CFDs, Commodities, Stocks & Shares, Options, Derivatives, Cryptocurrency, Forex | Android, iOS | 2FA, Biometrics | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Availability subject to regulations. FCA (FRN 509909). | ||
 | 7.6 | Visitfreetrade.io | Stocks & Shares, Commodities, Penny Stocks | iOS, Android | 2FA, PIN, Biometrics | The value of your investments can go down as well as up and you may get back less than you invest. | ||
 | 9.1 | Visitinteractivebrokers.com | Cryptocurrency, Stocks & Shares, Options, Derivatives, Forex | Android, iOS, Web App | 2FA, Biometrics, PIN | |||
 | 8.9 | Visitig.com | Stocks & Shares, CFDs, Forex | Android, iOS | From 0.5% | 2FA, Biometrics | Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. | |
 | 8.4 | Visittrading212.com | Stocks & Shares, Commodities, CFDs, Forex | Android, iOS, Web App | 2FA, Biometrics, PIN | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | ||
 | 8.7 | Visitfinecobank.com | CFDs, Forex, Options, Stocks & Shares, Commodities | Android, iOS | From 0.25% | 2FA, Biometrics | ||
 | 8.3 | Visithl.co.uk | Stocks & Shares, Commodities, CFDs | iOS, Android | 2FA, Biometrics, PIN | |||
 | 7.6 | Visitii.co.uk | Stocks & Shares, CFDs | iOS, Android | PIN, Biometrics, 2FA | |||
 | 7.9 | Visitajbell.co.uk | Stocks & Shares | Android, iOS | 2FA, Biometrics |
*Freetrade disclaimer: The value of your investments can go down as well as up and you may get back less than you invest. ISA eligibility and tax rules apply.
Stocks and Shares ISA Accounts: Top Picks Reviewed
Below are the reviews for the best stocks and shares ISA accounts.
Freetrade’s ISA has been dubbed as the best pick by major publications due to its straightforward and affordable pricing, flexible nature, and easy-to-navigate platform. Its ISA provides exposure to UK and US stocks and allows fractional share trading for investors with low starting budgets. The client funds are FSCS protected with coverage for up to £85,000.
Italy’s Fineco Bank is one of Europe’s major one-stop destinations for banking, credit, investing, and trading. Given its roots in banking, the platform serves a solid network of financial advisors along with top-tier security measures for investors who seek independent financial advice.
At the time of writing, Fineco Bank waives annual platform fees for investors who sign up or transfer stocks and shares ISA by the 30th of April 2023, for the remaining tax year ending in 2024. Its annual charge of 0.25% that kicks in after is among the lowest in the stock market.
Transferring an existing stocks and sharesISA is completely free of charge as long as the investor has an account with the ISA provider.
Drawing from BlackRock’s allocation models and managed by handpicked experts, IG’s smart portfolios are to be reckoned with. The platform’s selection of portfolios caters to five distinct risk profiles and offers diversified exposure to key global markets. An Investor can create their own portfolio within the same ISA wrapper. In fact, Including a diverse range of investments in your ISA can help you build a strong investment portfolio that can potentially deliver solid returns over the long term while benefiting from tax-free growth and income within the ISA wrapper.
Despite the industry-grade service, IG is known for maintaining its prices and staying true to its ethos of making markets more accessible.
Founded in 1992, this London-based Saxo Market is among the UK’s fintech pioneers. The platform is often celebrated for its easy-to-navigate and user-friendly online products that appeal to experienced and novice investors.
The ISA wrapper offers exposure to 60 global markets listing over 11,000 securities. The platform features sleek features to narrow the search, and despite having plenty of moving parts, its research and analysis tools are neatly organised and far-reaching.
A pioneer in the new-generation, low-cost fintech revolution, Trading212 is among the cheapest Investment platforms for ISA wrappers. Unlike many listed here, Trading212 waives annual platform charges as well as commissions in share dealing, the trade-off is a relatively limited exposure to markets.
The platform supports both a robust web workstation and a sleek mobile application that has full functionality, meaning that investors can have a seamless experience switching between their devices.
One of the household names in investing, Hargreaves Lansdown offers exposure to an impressive catalogue of over 3,000 bonds, UK and foreign shares, investment trusts, bonds, and ETFs. Besides a library of ready-made portfolios, HL also provides personalised financial advisory services either as a one-off or ongoing advice. Investors can set up a direct debit to fund their ISA, which starts from £25 minimum per month.
Bringing together an intuitive interface and straightforward pricing model, Interactive Investor’s ISA appeals to novice DIY investors who wish to handle their investments without financial help.
The platform provides numerous investment ISA deas wrapped up in themed lists like sustainable investments, along with managed Model Portfolios for hands-off investors.
It’s also free of charge to set up regular investments that start from £25 per month minimum.
One of the UK’s largest and most trusted investment outfits and an FTSE 250 listed company, AJ Bell is an excellent choice for investors looking to diversify their ISA wrapper.
The platform offers exposure to over 2,000 funds, both AJ Bell’s own managed and others, more than 450 investment trusts (easy to pick from AJ’s own select list), UK and international shares, and ETFs.
Investors can either follow the DIY route or choose from ready-made portfolios catering to different risk appetite levels.
Vanguard funds routinely top up various lists of income or growth funds, and for a reason – the company harnesses a stellar network of finance professionals that continuously deliver higher performances than their benchmark index.
Its Managed ISA wrapper comes with dedicated advisors that are ready to answer any questions that investors may have while providing expert management along the way.
Fidelity has an excellent industry reputation with over five decades of experience under its belt. Known for maintaining the human touch in personal financing, Fidelity’s digital products may come across as outdated, yet it provides impeccable screening tools and personalised help along the way.
Investors can choose from over 180 investment funds, over 390 ETFs, over 2300 UK and international shares, and a staggering number of over 3100 funds. The platform offers great discounts for those who set up a regular ISA investment plan starting with a minimum of £25 per month.
What Are Stocks and Shares ISAs?
ISA stands for an individual savings account, and stocks and shares ISA, as the name suggests, create a harmony between savings and investments. Through a stocks and shares ISA, investors can get their savings into work by purchasing securities, including stocks and shares, bonds, investment trusts, exchange-traded funds, or OEICs (open-ended ISA investment companies). Any UK resident over the age of 18 can apply for a stocks and shares ISA account.
A stocks and shares ISA come with benefits. It is also known as a tax wrapper, meaning that investors don’t have to pay income tax or capital gains tax on money earned from investments made through the account, yet up to a point. UK Investors can rest assured that their money in a stocks and shares ISA is protected by the Financial Services Compensation Scheme, which covers up to £85,000 per person per financial institution in the event of a bank failure or insolvency.
How Much Can I Invest in Stocks and Shares ISA?
The government sets a limit on how much can be invested into an ISA. The amount, called ISA Allowance, for the 2022/23 tax year stands at £20,000. Any excess payments will not get any tax relief.
This amount can be spread among different types of ISA accounts other than stocks and shares, including cash, innovative finance ISA, or lifetime ISA if eligible. The allowance expires at the end of the capital gains tax year and it doesn’t roll over to the next year.
Risks Involved With Stocks and Shares ISAs
Being invested in any security comes with the inherent risk of non-guaranteed returns. With a regular investment account or Cash ISA, investors can get regular income or fixed interest rates and therefore promised returns, whereas investment ISAs come with no such strings attached – as with any trading instrument, investors put their capital at risk and are essentially putting their trust in the market growth in the long term.
To mitigate the risks, many investors turn to expertly managed ISAs from trusted brokers that have a track record of success. While this doesn’t eliminate the likelihood of loss, it may minimise it.
Common Fees for Stocks and Shares ISAs
Though tax-efficient, stocks and shares ISAs don’t come free of cost and it's important to understand the costs involved before starting to invest. Here are the most common fees associated with ISAs;
Platform Fees – Charged annually or monthly, these charges usually are percentage fees deducted from the total amount, for some, like Hargreaves Lansdown or AJ Bell, they are capped at reasonable amounts. Platform fees may masquerade as custody fees, tiered plan charges, or service charges. Some, like Interactive Investor or Freetrade, charge a monthly flat fee.
Commission on shares dealing – While many brokers waived commissions on trading stocks and shares, it's not uncommon to see UK trading platformscharging a flat fee per deal. Charges may vary from £1 to £10, depending on the number of deals per month.
Transfer Fees – While rare, an ISA provider may pose charges for transferring existing ISAs onto their platform. These charges usually come on per stock basis and can be as high as £25.
Self-Select, Managed, or Ready-Made Portfolios?
Investors have various choices in terms of the management of their stocks and shares ISAs.
Self-Select ISAs are an excellent choice for investors with experience. It gives the investor full control over what assets they will put their money into, what to sell, and managing the entry and exit points.
Managed ISAs, as offered by established UK investment platforms like Vanguard or Hargreaves Lansdown, may come with extra charges but they provide peace of mind. Investors answer a few questions regarding their investment personality, long-term goals, and risk tolerance.
Ready-Made Portfolios, in a way, provide the middle ground. Platforms like AJ Bell offer a library of ready-made portfolios that cater to distinct investment profiles by risk attitude and long-term goals involving select asset classes and allow investors to manage it along the way.
Are Stocks and Shares ISAs Profitable?
On the long haul, quite possibly! Stocks and shares ISAs allow investors to protect their savings from being diminished by inflation and generally yield higher returns than fixed interest rates.
A study found that the average return from stocks and shares ISA for the tax year 2020/21 stood at 13.55%, whereas the interest rate available for Cash ISAs for the same period was 0.63%. This shows that while there are always risks involved, a stocks and shares ISA account can help maximise the efficiency of savings. The best stocks under £1can be found in one of the articles we developed.
