Best Stocks & Shares ISAs – Top 2023 Picks
This article outlines our best platform picks for investing in your 2023 ISA.
Stocks and Shares ISAs (Individual Savings Accounts) are a tax-efficient way to invest in the UK.
It allows individuals to invest up to £20,000 in the 2023-2024 tax year without paying tax on any capital gains or dividends earned on your investments.
Our Top Picks - Stocks & Shares ISAs |
||
|---|---|---|
| 5 investment styles, plus Smart Alpha Invest from £500 Portfolio Options: Choose from 1. Fully Managed 2. Smart Alpha 3. Socially Responsible 4. Fixed Allocation Portfolios 5. Thematic Investing | See Deal » | |
You can open or transfer to a Nutmeg ISA in minutes. Client assets are held seperately with Barclays & State Street. Consumers may be covered under FSCS. Capital at risk. Approved by Nutmeg on 24/02/2023 |
||
| Low cost share trading ISA platform. Earn interest on idle cash balances Trade from £1 Features: £3/€3 per trade for UK & most European stocks. US stocks start from $0.005 per trade. | See Deal » | |
Sign up in minutes. Powerful trading tools. Low currency conversion fees. Fractional US or European share dealing. IBKR ISAs provide access to global markets and tools like GlobalAnalyst help you diversify your portfolio internationally.Your account is protected under the US Securities Investor Protection Corporation up to $500,000 (subject to a cash limit of $250,000). Capital at risk. |
||
| 6 low cost funds selected by experts Invest from £1 Features: Award winning ISA for just £9.99 per month. | See Deal » | |
Trsuted by over 400,000 people. Fully FSCS protected. |
||
| Choice of 500 low cost ETF Funds Invest from £1 Features: No buying or selling fees. No ISA account charges. Powerful automation. Easy diversification. DIY or managed. | See Deal » | |
Build your own low cost portfolio using managers such as Vanguard, iShares & Invesco. FSCS protected. Capital at risk. |
||
| Choose from over 2,000 funds From £25 per month Features: Low cost ISA. Multi-award winning ISA provider. | See Deal » | |
Mobile app - manage your portfolio on the move. FSCS protected. Capital at risk. |
||
What is the best Stocks & Shares ISA platform?
When choosing an ISA platform, you typically can go down several routes:
- DIY stocks & shares ISA platforms – this is where you have control over the investments you hold in your stocks and shares ISA. You can choose funds, buy shares, ETFs
- Robo-Adviser stocks & shares ISA platforms – investments are chosen for you based on your attitude to risk or your investment goals
- Own fund stocks & shares ISA platforms – where you can choose a limited range of inhouse pre-selected investment funds typically based on your attitude to risk, e.g. Low, risk funds up to adventurous or timeframes
One of the key considerations is cost. However, picking the “cheapest” is not as simple as it sounds, as each platform has its costing model, which often makes it difficult to compare like for like.
1. DIY Stocks & Shares ISA Platforms
Select your ISA investments for your 2022-23 Stocks & Shares ISA
DIY Investment Platforms |
||||
|---|---|---|---|---|
| Features | Cost | Fee to buy & sell funds | Fee to buy & sell shares | |
| Invest from £100 | None | None | Buying shares not an option | |
| Invest from £25 pm Open as many junior ISAs you like at no extra cost. | £9.99 pm flat fee | None | £5.99 per trade 1 Free trade pm |
|
| Invest from £500 or £25 pm | 0.25% pa | £1.50 | £9.95 per trade | |
| No minimum deposit | None | Share trading only | £3/€3 per trade For UK & most European stocks. US stocks start from $0.005 |
|
| Invest from £25 pm | 0.35% | None | £7.50 per trade | |
| Invest from £100 or £25 pm | 0.45% pa | None | £5.95 (20 or more trades pm) £8.95 (10 to 19 trades pm) £11.95 (up to 9 trades pm) |
|
Other considerations include the following:
- How easy is the platform to use – what tools and research are on offer? Does the platform serve your needs?
- What fund discounts are there? – different platforms have negotiated various discounts on funds
- Customer reviews – helpful in understanding the strengths and weaknesses of platform providers
- Customer service – how good is the customer service provided
2. Robo-Adviser Stocks & Shares ISA Platforms
If you are new to finance, investing in the stock market can be a good way to grow your savings. This is where Robo-advisers come into play.
Using algorithms, these online investment platforms make personalized investment recommendations based on your financial goals and risk tolerance.
Robo-advisers are on the rise since they are convenient and low-cost alternatives to traditional financial advisors.
Here are some of the best Robo-adviser platforms available today where you can invest through a stocks & shares ISA:
Robo-Adviser Platforms | Features | Cost | Average annual fund cost |
|---|---|---|---|
| Invest from £100 Offer DIY and managed portfolios using ETF funds for growth or income. ETF fund range includes managers such as HSBC, Vanguard & WisdomTree. FSCS protected | 0.23% to 0.37% pa | None | |
| Invest from £1 Offer a range of investment plans using mostly ETFs and mutual funds. Use selected fund managers including Fidelity, BlackRock & Legal & General. Offer a range of 5 ethical plans. FSCS protected. | 0.6% pa | 0.16% to 0.7% | |
| Invest from £500 Choose from 5 investment styles in ETF funds including Vanguard & UBS. Choose an investment style that works for you suited to your chosen risk level. FSCS protected. Approved by Nutmeg 24/02/2023 | 0.25% to 0.75% pa. Figures correct as of 24/02/2023 | 0.21% to 0.30%. Figures correct as of 24/02/2023 | |
| Invest from £500 Range of portfolios managed by experts from M&G Wealth, who continually review a range of factors and global trends to make ongoing decisions about where to invest, and find new opportunities with the potential to deliver long-term growth for investors | 0.35% to 0.75% pa | 0.19% to 0.42% | |
| App Only Invest from £1 Partnered with BlackRock Choose from themed ETF funds including Vanguard & iShares. FSCS protected. | £4.99 pm | 0.17% to 0.97% | |
| Invest from £500 7 Portfolios to choose from lower risk to higher risk using ETF funds. FSCS protected. | 0.35% to 0.75% pa | 0.2% | |
| FSCS protected |
Each platform offers unique features and benefits, so it’s important to research and compare them to find the one that best suits your needs.
For example, InvestEngine specializes in low-cost Exchange Traded Funds (ETFs), whilst ChipX offers investors themed funds in line with your interest, e.g. Clean Energy, Healthcare Innovation.
In addition to the platforms mentioned above, many more Robo-advisers have been developed recently. The list of platforms is constantly changing as new players enter the market.
When considering a Robo-adviser, it’s essential to consider factors such as the platform’s investment strategies, fees, account minimums, and customer support.
It’s also important to look at the company behind the platform, as this can provide insight into its financial stability and long-term prospects.
Overall, Robo-advisers are a great option for those looking for a low-cost and convenient way to invest their money. With the right platform, you can take control of your finances and achieve your investment goals.
3. Own Fund Stocks & Shares ISA Platforms
Several DIY platforms, such as Interactive Investor, Fidelity & Hargreaves Lansdown, offer their funds and a wider investment offering, while some providers, such as NatWest, have stuck to only offering their own funds.
Own Fund Platforms | Features |
||
What are the Benefits of Stocks and Shares ISAs?
One of the main benefits of stocks and shares ISAs is the tax-free nature of the investment.
Unlike other investment accounts, the returns earned on stocks and shares ISAs are not subject to capital gains tax or income tax. Investing in this way can result in significant savings for investors over time.
Stocks and shares ISAs also offer a wide range of investment options, including individual stocks, bonds, and funds. Investors can diversify their portfolios this way and earn returns from various sources.
What are the Drawbacks of Stocks and Shares ISAs?
There are many advantages to stocks and shares ISAs, but they also have some disadvantages.
Among the drawbacks of these investment vehicles is that they are not protected by the Financial Services Compensation Scheme (FSCS). If the ISA company goes bankrupt, investors may lose their entire investment.
The value of stocks and shares ISAs is also subject to market fluctuations and volatility. The value of an investment may decrease or increase depending on the return it generates.
What other factors should I consider when investing in a Stocks & Shares ISA?
It’s also worth noting that ISAs are excellent vehicles for long-term investment. However, ISAs are not suitable for short-term speculation, and if you plan to withdraw money frequently, there might be better options.
Stock market investing carries a certain level of risk, and investments’ values can rise or fall. Diversifying your portfolio is the key to reducing the risk of investing all your eggs in one basket.
Additionally, you should review your ISA portfolio regularly and make adjustments as needed. By rebalancing your portfolio, you can ensure that your investments are aligned with your financial goals and maintain the right level of risk.
Stocks and Shares ISA Tips and Strategies
Although stocks and shares ISAs have some drawbacks, there are many strategies investors can use to maximize their returns. One of the most important is diversification. Investing in a range of stocks, bonds, and funds can reduce investors’ risks and increase their returns.
An alternative strategy is to invest in companies that have a solid business model and a strong track record of performance. The risk of losing money on a particular investment can be reduced by doing this.
Additionally, if you prefer someone else to advise you on your options as an investor, consider working with a regulated financial advisor to develop a comprehensive investment strategy that considers your risk tolerance and financial goals.
What are the Best Stocks and Shares ISAs for Your Investment Portfolio?
Stock market investing can be an excellent way to grow your wealth over time. Stocks and shares ISAs, also known as individual savings accounts, are a good way to do this.
Over time, investing can help you build wealth. Investments can help your money grow faster than if left in a savings account, whether you are saving for retirement or a specific financial goal.
You can invest your money in many places, but the stock market is one of the most popular and potentially profitable places.
Investing can be risky, though, and it’s essential to understand the different types of investments available.
An ISA is a tax-free investment account that allows you to save and invest your money. ISA investments are not subject to income tax or capital gains tax, so any profits or income you make are tax-free.
Investing in this way can maximize your returns and allow you to keep more of your money.
Various ISAs are available, including cash ISAs, stocks, shares ISAs, and innovative finance ISAs. As each type of ISA has its own rules and restrictions, it’s important to understand the differences and choose the one that meets your investment needs.
You can diversify your investment portfolio by investing in the stock market through an ISA. Some of the top ISA platform providers on the market include Interactive Investor, AJ Bell, Hargreaves Lansdown and Fidelity.
What to consider when choosing a Stocks & Shares ISA Provider?
Fees can vary widely between ISA providers, so comparing them is a good idea before choosing one.
Some providers charge annual fees, trading fees, and other charges that can eat into your returns. Some providers may have restrictive rules or penalties if you withdraw your money early, so read the terms and conditions carefully.
It is also essential to consider the level of support and guidance offered by an ISA platform provider before choosing it.
Some providers provide educational resources and tools, such as investment guides and webinars, to make informed investment decisions. ISA platform providers also offer a dedicated customer service team to answer your questions.
How to Monitor and Manage Your Stocks and Shares ISA
Once you have chosen a stocks and shares ISA, it’s prudent to monitor and manage your investment to ensure it stays on track.
First, make sure to keep an eye on your portfolio’s performance. This will help you identify any underperforming investments and adjust as needed.
Maintain a regular review of your investment mix to ensure it aligns with your goals and risk tolerance. If your investment mix becomes too heavily concentrated in one area, it may be time to make changes.
Staying informed about current events and market trends can help you make more informed investment decisions.
How does an ISA work? What are the tax advantages?
Investing in Stocks and Shares, ISAs offer tax benefits and one tax pitfall to be aware of:
- Capital Gains Tax (CGT) – In an ISA, you will never have to pay CGT on growth from your investments
- Income and Dividends Tax – Dividends and income generated by ISA assets are tax-free
- Stamp Duty Reserve Tax – If individual shares are purchased electronically within an ISA, a 0.5% stamp duty tax will be charged by the government
- Inheritance Tax – Your beneficiaries may have to pay Inheritance Tax on the value of your ISA after you die
Important Risk Information:
This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall and rise, and you may not get back the total amount invested. The tax efficiency of ISAs is based on current tax law, and there is no guarantee that tax rules will stay the same in the future.
Different investment types carry different risk levels and may not be suitable for all investors. Before deciding to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you doubt the suitability of a specific asset, both in respect of its objectives and risk profile, you should seek independent financial advice.
Tags