My Isa has £24,000 in shares, trusts and ETFs – what’s the cheapest investment platform?

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I have £24,000 in my stocks and shares Isa invested in a mix of shares, investment trusts and a global ETF.

I regularly invest monthly into the global ETF and add to my other holdings on an ad hoc basis, usually trading about twice a month but sometimes more often.

I don’t hold any investment funds, only these stock market-listed investments. What would be the cheapest investment platform for me in terms of the cost of holding investments and buying and selling? 

Helen Kirrane of This is Money replies: The rise of online brokers and DIY investing has delivered a revolution in buying shares, investment trusts and funds. 

Investors can now make huge savings compared to the old days of using their stockbroker, financial adviser, or going straight to a fund manager.

Online investment accounts – and now app-based investing services – have pushed down the cost of buying and holding shares, funds and trusts, with some even now offering fee-free trading and no-charge basic accounts.

We asked the experts about the best platform options to keep fees for your investments down.

Hollie McKay, founder and CEO of comparison site Boring Money replies: If your main focus is price then these three options would be the cheapest:

• Trading 212* which would be free for the investments you’ve outlined
• Freetrade* which would cost about £60 a year (a little more if you pay monthly)
• CMC Invest which would cost £120 a year

We have assumed 30 ad hoc share trades across the year in assessing costs.

All three of these options will support shares, investment trusts and ETFs. Trading 212 was also a winner of our 2024 Best Buy awards and so is a very good all-rounder in my opinion. 

But all three are decent low-cost options, with good apps, for those who like trading and are at the more confident end of the investor spectrum.

If you were tempted by a more mainstream, established brand then trading fees will be the thing to watch. Generally most platforms charge a lot less for regular investments, so if you could make fewer ad hoc trades, and add more regular ones, your costs would typically be lower.

How investing platforms compare for share dealing

Helen Kirrane of This is Money replies: There can be a substantial difference in share dealing costs and also the cost of holding investments across different platforms. 

We crunched the numbers on the basis that you trade on an ad hoc basis – when you want – and not as regular monthly investments, which are often much cheaper.

If you were to hold your investments with Hargreaves Lansdown*, there is an annual account charge capped at £45 a year for holding shares, trusts and ETFs. 

But while fund dealing is free, share dealing charges are £11.95 per deal for shares, investment trusts and ETFs. 

Given you trade around twice a month, you would pay £286.80 over the course of a year if you did these as ad hoc trades. Add the £45 annual charge and your total costs at Hargreaves Lansdown would be £331.80 per year.

Interactive Investor* charges £4.99 per month for holdings under £50,000, which is £59.88 per year. Dealing charges for shares, investment trusts and ETFs are £3.99. Assuming you are trading twice a month over the course of the year, this would cost £95.76 in dealing fees to give a £155.64 total annual cost.

Trading 212* is likely to be the cheapest option for you, as it has no account charges for the investments you hold and no charges to buy or sell shares. It is free to add money via bank transfer but above £2,000 cumulatively, deposits via Cards, Google Pay, Apple Pay & other are charged 0.7 per cent.

Freetrade* also has no share dealing fees but there is a £5.99 per month fee for the Standard account with an Isa, adding up to £71.88 per year. This is cut to £59.88 if you pay annually.

IWeb has no account fees but does carry a one-off £100 account opening charge. However, this is being waived until 30 June this year. Standard share, trust and ETF dealing is £5 per deal. So iWeb would cost £120 annually for two trades a month if you sign up before 30 June.