For your ISA, how to choose an investment platform

Often referred to as fund supermarkets, investment platforms enable you to purchase, sell, and hold stocks, trusts, and funds

But what should you watch out for and how do you choose the best one?

Now that a new tax year has begun, many investors will be searching for the best location to initiate or expand their 2025 - 2026 stock and share ISA.

Investment platforms have made investing accessible to everyone, eliminating the need for expensive stock brokers or advisers to purchase funds or choose a pension for you.

Establishing, growing, and managing your own stocks and shares through an ISA can be a fantastic experience.

Investment platforms offer the majority of us a straightforward, simple, and convenient way to make investments.

For opening a new ISA or SIPP account, some might even provide cashback incentives.

However, since there is no one-size-fits-all approach when it comes to selecting an investment platform, how can we choose one that meets our needs? Should we approach them similarly to how we choose a current account for our daily banking?

When choosing a platform to build your portfolio, choosing the right one can help you save money on fees while also assisting you in reaching your objectives. Choosing one with a high customer rating is also crucial because, when one is getting rich, who wants to deal with faulty apps, subpar customer support, or IT meltdowns?

How will you invest when selecting an investment platform?

Know exactly what you want to invest in before choosing your fund supermarket. Platform offerings vary; some offer simplified options, while others exclude certain regions or sectors. Therefore, choose a platform that enables you to cast a wide net.

Choose a platform with low fees if, for example, all you want to do is invest in inexpensive tracker funds, which is a popular move among investors right now due to market volatility. You don't want to pay for a stock picker's expertise, after all.

If you believe you want to invest in a variety of securities, including stocks, trusts, and both active and passive funds, you should see if the platform you select offers what you're looking for.

Additionally, if you want to purchase individual stocks, make sure the provider you select allows it.

Not every platform has everything. For instance, Vanguard does not offer shares; it only offers Vanguard funds. If you choose a robo-adviser, you will frequently be limited to either pre-made portfolio options or a small number of investments.

Fees for investment platforms.

Since most of us are now more cost-conscious than ever, it makes perfect sense that your ultimate goal should be to keep fees as low as possible. After all, we all know that high fees reduce returns and leave you with less money in your pot.

The good news is that comparison websites such as comparetheplaform.com, boringmoney.com, or comparefundplatforms.com make it simple to compare fees.

However, as with purchasing insurance products, the availability of research and tools, customer service ratings, and available investment options are all important considerations, even though fees are one of them.

Based on customer reviews, these are some of the most affordable platforms for someone looking to build their own portfolio from a variety of investments with a lump sum of £20,000. This information is provided by the investment comparison website Boring Money.

The following fees are listed as annual administration fees, but you will also be responsible for fund fees: Vanguard (48), AJ Bell (50), Interactive Investor (59.88 based on Investor Essentials plan), Fidelity (70 based on regular savings plan), and Hargreaves Lansdown (90). which is contingent upon your choice and the overall amount of your investments.

It is important to keep in mind that using these platforms to invest also entails paying trading fees for stocks and performance fees for active funds.

Generally speaking, if you are investing £50,000 or less, a percentage fee platform is usually more economical. However, if there is more, a fixed fee might be more sensible. If you intend to buy and sell shares frequently, it might also make sense.

Interactive Investor's Investor Essential Plans, for instance, have a monthly flat fee of 4 points, but trades in the US and the UK cost 3 points. The Investor Plan, which costs £11.99.0 per month and includes one free trade, is its most popular plan.

If you're looking for a good all-arounder, Fidelity is a popular option, and Hargreaves Lansdown might be a good fit if you simply want the most options for your investments.

It's important to keep in mind that if you choose to transfer your investments to another platform, some may impose exit fees.

Selecting top-notch robo-advisers.

Although investment platforms make investing simple, it makes sense to let a robot handle your investments if you want to be completely hands off.

For novice investors or those who would prefer to have as little interaction with their portfolio as possible and are content to let a robo handle their investing, the so-called robo-adviser platforms are ideal.

Robo investment platforms have become more and more popular because, once you open an account, they don't require much of your input, and even people with no experience can increase their wealth.

However, through ready-made portfolios tailored to your risk tolerance, they also provide access to investment opportunities and innovation. They are also reasonably priced, which adds to the allure of their offer.

Based on your risk tolerance, robo platformswhich are typically app-baseduse artificial intelligence and risk questionnaires to identify the optimal investment for you.

This reduces the administrative burden of portfolio construction and aids in creating a plan that reflects your risk tolerance.

You have no control over where or how your money is invested, unlike with a do-it-yourself platform, even though the platform regularly monitors and rebalances the portfolios.

Again, knowing your investing style and objectives is crucial because these are some of the most well-known robo adviser platforms, each of which offers something slightly different.

ISAs, general investment accounts, and pensions are all offered by Nutmeg, one of the oldest robo-advisers in existence. Investing £5,000 in a fully managed ready-made portfolio costs about £49.00 annually. Wealthify, which is comparable to Nutmeg, provides investment accounts, pensions, and ISAs. Because you can open an account with as little as one, it's a great way for people who don't think they have a lot of money to start investing, or even for young adults who are just starting out with an ISA. Using a pre-made portfolio, it costs about 38 per year for 5,000 invested on the platform. This platform, Moneybox, has gained popularity among people who find it difficult to save enough money each month to start investing. Your spare change is rounded up by the app and converted into an investment product for you. Therefore, it will round up your lunch expenditure to the closest pound and transfer 75p into investments for you if you spend 4p25. The tiny sums can add up, but it's important to remember that even small fees can have a high cost. According to Boring Money, investing £5,000 on the app would cost about £50,000 annually. There are also very few options for investments. The app is therefore a great place to start when trying to gain confidence, but once you feel like you are in the swing of investing, it would be wise to move on. Dodl of AJ Bell is one of the new players that merits mention. It's likely that you have seen the large, adorable monster on billboards. Dodl bills itself as an easy-to-use investing app that makes investing straightforward. It provides low-cost, simplified investing options.

Platforms for investments that offer guidance as well.

Both Claro and BestInvest provide access to financial coaches if you need help reaching your objectives or even learning new money management techniques, which is something we may all be considering at the moment given the high rate of inflation.

Pursuing investing from a feminist or green perspective.

Making your portfolio greener is another factor you might want to think about when making investments this year.

Everybody wants to contribute to society or the environment, but your money is the most powerful tool, and you can use a platform to invest in charitable funds.

While the majority of providers provide an ethical option, some, like Clim8 (clim8 . com), assert that they concentrate on climate solutions. Their investment themes include clean mobility, sustainable food, water systems, green energy, climate technology, and the circular economy.

The Big Exchange is another well-known platform. It was co-founded by The Big Issue and was established in 2020. Its investments center on having a positive impact on the environment or society.

In order to add a feminist touch to your portfolio, The Big Exchange also lets you apply a filter to select funds managed by women, if that is one of your concerns.

So, in the end, it's worthwhile to consider your values and make sure the platform and its offerings match your priorities when choosing a platform.

Depending on your investment style, the services you need, and occasionally the size of your portfolio, you will have to choose an investment ISA.

Below, we've listed the prices of investment ISAs on the major do-it-yourself investment platforms.

Bell AJ.

A platform fee per year.

Shares: 025 percent (maximum of 350 percent monthly).

Funds: 0% up to £250,000, 0% on £250,000 to £500,000, and 0% on amounts over £500,000.

Transaction costs.

Dealing in shares: 5; for 10 or more deals per month, it drops to 3point 50.

Fund transfer: 1 point 50.

The best investment.

Platform fee per year.

Fund and share portfolio: 0 percent on the first 250,000, 0 percent on the 250,000 to 500,000, 0 percent on the 500,000 to 1 million, and 0 percent above the 1 million.

US shares: 0% up to 250,000, 0% between 250,000 and 500,000, 0% between 500,000 and 1 million, and 0% over 1 million.

Transaction costs.

Exchange-traded funds and UK shares can be purchased or sold for 4.95.

Charles Stanley.

A platform fee per year.

Shares: 035% (monthly minimum of 2monthly maximum of 20).

Funds: zero percent on the first two hundred fifty thousand; zero percent on the next two hundred fifty thousand; zero percent on the next five hundred thousand; zero percent on the next one million; and no extra fee on anything over two million.

Fees for trading.

The share price is at 11:50.

Faithfulness.

Annual platform charge.

If you have a regular savings plan, you will receive 0 percent on the first 25,000, or 90 percent if you don't; 0 percent on amounts between 25,000 and 250,000; 0 percent on amounts between 250,000 and 1 million; and there is no fee for amounts over one million.

Fees for trading.

1.50 for deals that are part of a regular savings or withdrawal plan, or for dividends or income reinvestment.

7 Point 50 is the basic fee for every online deal.

The Hargreaves Lansdown.

A platform fee per year.

Funds: 0 percent applies to the first 250,000; 0 percent applies to 250,000 to 1 million; 0 percent applies to 1 million to 2 million; no fees apply to amounts over 2 million.

Bonds, gilts, exchange-traded funds (ETFs), investment trusts, and shares are all subject to a 45 percent annual fee.

Transaction costs.

11.95 offers 09 deals every month.

8.95 has 1019 deals every month.

Monthly sales of at least 20: 5.95.

Engaging investor.

A platform fee per year.

Essentials for Investors: 4 points per month up to £50,000. Trades in US and UK funds and shares are 3.99.

Monthly investor plan: 11 points 99. The first trade is free each month. 3.99 is another US and UK trade.

19point 99 per month is the Super Investor plan. Each month, the first two trades are free. The US and UK only trade 3.99.

The nutmeg.

The annual fee for a fixed allocation account is 0 percent for the first 100,000 and 0 percent for amounts over 100,000.