Our bottom line
For beginner & intermediate investors, the iWeb share dealing account shouldn’t be ignored. Operated by Halifax Share Dealing, this account offers a wide range of investment opportunities at a lower cost. However, its limited access to foreign markets might frustrate more adventurous investors.
While there’s no mobile app available, the website is easy to navigate and you’ll have access to shares, gilts, stocks and ETFs across multiple world markets. It’s a solid option for investors who know what they’re looking for and want a lower cost share dealing account to invest through.
Remember, if you’re ever unsure about the suitability of an investment for your own circumstances, please seek independent financial advice first.
Top feature of the iWeb Share Dealing Account
One of the features that stands out about iWeb’s offering is the price. Although it costs £100 to open an account, you won’t pay any annual administration fees, and you only pay £5 commission for every UK share trade.
It doesn’t matter how active you are, or how much your portfolio grows, either – you don’t pay any extra platform fees. And you won’t pay inactivity fees if you’re an infrequent trader.
It may not be the best value share dealing account for highly active investors making multiple trades per day, however it’s worth considering if you trade less frequently (but enough over time to minimise that £100 opening fee).
iWeb Share Dealing Account commission prices
There’s a simple pricing structure for shares. You pay £5 commission for every trade you make. If you sell or buy any international shares, iWeb will convert the price into GBP, adjust the exchange rate by 1.5%, and keep the difference as commission. (This is charged in addition to the standard £5 trading fee.)
If you make any dividend reinvestment purchases, are charged at 2% of the dividend value, up to a maximum of £5 per stock.
Fees you should know about
Compared with other traditional brokers, the fees are really simple. You pay a one-off joining fee of £100, then there’s a 0.5% UK Government stamp duty on any UK shares you buy on top of your trading fees.
There are no platform fees and no penalties for inactivity. This can prove advantageous for buy-and-hold or infrequent traders. After your account is launched, you therefore won’t have to worry about platform or inactivity fees eroding your account balance, should you follow a ‘set and forget’ approach, or if you trade infrequently.
If you choose to invest in funds, you will be charged the standard £5 trading commission for each fund trade that you make. For each fund that you hold, you will pay ongoing charges and transactions costs to its fund manager every year. Both of these charges are deducted directly from the value of your fund holding by the fund manager. As a guide, ongoing charges typically range between 0.25% to 1.5% of your investment’s value, plus a further 0.5% to cover the transaction costs. (The exact amounts are listed in each fund’s documentation on the iWeb website.)
It’s free to set up a TradePlan with your Share Dealing account to help you stop losses or limit orders.
Buying shares, ETFs and funds with an iWeb Share Dealing Account
There’s a good range of stocks, shares, trusts and ETFs available across seven different markets in Europe, the UK and the US.
Just so you’re aware, you can’t access emerging markets in, for example, Asia.
iWeb’s share dealing platform
It’s easy to set up a share dealing account. All you do is apply online. Once you’re registered, the platform is simple to navigate and you can access it on your phone, albeit there’s no mobile app.
All in all, the platform is fairly basic, but it does what you need it to do.
iWeb’s research offerings
The Shares and Funds Centre lets you search for investments and the latest share prices. There’s also a Markets and Insights hub, online support and some fairly detailed charting available.
The platform makes it clear that no investment comes without risk, which is of course critical to remember. Keep in mind too that any investment information and expert opinion provided on iWeb’s website is not personal advice and is designed for investors who are happy making their own investment decisions. If you’re unsure about the suitability of an investment for your circumstances, you’ll want to seek out your own independent financial advice.
Things to watch out for
You won’t find any model or pre-made portfolios on the platform. So, you really need to know what you’re going after and what your strategy is before you get started.
If you’re trading internationally, remember exchange rates fluctuate, which can affect the commission you pay iWeb on these trades.
Finally, if you’re a really active trader, £5 per transaction adds up quickly, so it might not be cost-effective.
Service and support
There are some guides available online, and iWeb’s UK based telephone and live chat helpline is open 8am-9pm, Monday to Friday.
There’s also a text phone service for those with speech and hearing difficulties (open 8am-5pm, 5 days a week).
Is an iWeb Share Dealing Account a good choice for you?
If you’re happy to overlook the lack of pre-made portfolios, then maybe. There’s a great range of diverse investment opportunities in the core markets available, and it’s decent value for money.
However, it’s not the most sophisticated platform out there, and you might find the lack of a mobile app frustrating if you’re on the move. New investors might find it all a little overwhelming since there’s not much signposting or help for getting started.
All that said, the one-off account charge and low trading fees make it a serious contender for those investors looking for a no-fuss, cost-effective way to invest.
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