Our bottom line
As an account holder, I am extremely happy with Interactive Investor’s share-dealing platform, which has a lot to offer many different types of DIY investor. The platform is straightforward and uncomplicated, which is great if you are a newbie or if you know exactly what you are looking for. That being said, with this platform you have the choice of thousands of different stocks and shares, funds, investment trusts or ETFs, and it will alert you to the latest IPOs.
For me, one of the biggest attractions has to be its uncomplicated pricing structure. You can choose between three different price plans and you pay a monthly fee depending on the type and number of transactions. Once you have used your trade credit, you are charged from £3.99 to £7.99 per trade depending on the fund and type of investment vehicle.
Unlike many share-dealing platforms, the fee is not dependent on the size of your investment, because Interactive Investor does not charge you a percentage of your portfolio. Also, it doesn’t charge a separate platform fee. Keeping tabs on the fees and charges is always important in the long term. With this platform, it’s simple and easy to work out my total fees for the year.
Top features of Interactive Investor’s share dealing account
If you are spoilt for choice, you have access to low-cost investment funds via its Quick-start option. It’s also worth checking out the ii Super 60 investments option if you are interested in its list of the highest performers. Other useful features include price alerts, watch list creation and a news feed option.
Interactive Investor commission prices
I believe that the Interactive Investor share dealing service is good value for money and difficult to beat in terms of price and quality.
Investors can choose from three different price plans:
- Investor: the core plan for investors, costing £9.99 per month.
- Funds fan: for investors wanting to build a portfolio of funds and investment trusts, costing £13.99 per month.
- Super investor: the premium plan for active investors, dosting £19.99 per month.
With all three plans, the fee includes trading credit worth £7.99. This free trading credit is valid for 90 days so you don’t have to use it in that month. The number of trades you will be able to make with this credit will depend on your plan. This is because the cost per trade varies as follows:
- Investor – Fund trades cost £7.99 each, UK share trades cost £7.99 each.
- Funds fan – Fund and investment trust trades cost £3.99 each, UK share trades cost £7.99 each.
- Super investor – All UK trades (inc funds) cost £3.99 each.
So, if you are on the Investor plan and you make one trade per month costing £7.99, the actual monthly fee is £2.
If you are on the Funds fan plan and you make one UK share trade costing £7.99, the actual monthly fee is £6. Alternatively a Funds fan could choose to make two trades of funds or investment trusts every month costing £7.98 with the actual monthly fee of around £6.
A Super investor can make two UK trades costing £7.98 and the actual monthly fee is £12. Unsurprisingly, Super investors get the best deal, since they can choose from UK stocks and shares, funds or ETFs.
As a holder of the Investor core plan, I know that my total fees and charges for the year will be £119.88 as long as I only make one trade per month. Working out easily where you stand in terms of fees and charges is not to be underestimated. This is especially important as your investment grows.
It is definitely worth working out what plan is best for you. Admittedly this is not that straightforward if you plan to make more than one trade per month on average. But another good feature about the platform is that you can easily change your plan if you think an alternative is better suited for you.
Fees you should know about
Regular investing is free, which is good if you want to set up a regular savings plan to drip-feed money into the stock market. You can make up to 25 investments per month into a wide range of funds and popular shares, without incurring trading fees.
If you are thinking about long-term investment, dividend reinvestment may be an important consideration. Interactive Investor charges £0.99 per transaction with all three plans.
You can trade internationally with all three plans, but the fees and charges are as follows:
- Investor plan charges £7.99 per trade of US shares, and £19.99 per trade of other international shares.
- Funds fan plan charges £7.99 per trade of US shares, and £19.99 per trade of other international shares.
- Super investor plan charges £3.99 per trade of US shares, and £9.99 per trade of other international shares.
Telephone trades cost £49, and your free trade credit cannot be used for this type of trade.
Additionally, the commission for buying or selling UK shares, funds (unit trusts and OEICs), bonds, gilts and exchange traded products trades of over £100,000 rises to £40. Dealings of the same amount for US shares cost 0.04% of the trade value, while it costs 0.10% of the trade value to buy or sell other international shares over £25k.
Buying shares, ETFs and funds with an Interactive Investor account
You have access to more than 40,000 investment options in the UK and internationally. This includes shares, funds, investment trusts and ETFs. The platform can handle transactions with 9 different currencies.
Interactive Investor’s platform
I really like the portfolio page because you know exactly where you stand. It shows the total value of your portfolio, and if you have multiple accounts it also gives a breakdown of the account type and value. It also shows the total amount of free cash and the amount invested.
Further down are important account details. At a glance you can see your current trading credit balance and the date when your credits expire. You can also see your service plan and when your next payment is due.
Your list of investments show the gain in terms of value and as a percentage of the total. You can view more information including the performance of your shares over a selected time period.
Interactive Investor research offerings
As you can imagine, with this platform there is a wide range of research offerings. Through the news hub, I have access to share tips and ideas, insider videos and podcasts.
There is also a Knowledge centre with an all important jargon buster section and some great beginner guides if you are new to investing.
Service and support
Call centre opening hours are 7:45am – 5:30pm Monday to Friday GMT and 5:30pm – 9pm Monday to Friday GMT. You can call 0345 607 6001 from the UK and +44 113 346 2309 from overseas.
I have not had to contact the service provider directly, but I do get useful email notifications regarding corporate actions and dividend payments.
Is an Interactive Investor share dealing account right for you?
The Interactive Investor share dealing service has a lot to offer and has universal appeal. I would say that if you want a service that has a straightforward, easy-to-understand pricing structure with a user-friendly platform, then this one is definitely worth considering.
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