The Best Stocks & Shares ISA in 2024

Summary

In this comprehensive guide, the speaker reviews various investment platforms, comparing their fee structures and services to help viewers choose the best options for their needs. They highlight the advantages of platforms like Interactive Brokers for low fees on ETFs and shares, and iWeb's attractive offer for lump-sum investors despite its higher FX fees. The video emphasizes the importance of understanding fee implications, particularly for long-term investments. The speaker encourages viewers to ask questions and suggests that with proper knowledge, they can effectively manage their investments without relying on high-fee robo-advisors.

Takeaways

• 😀 Interactive Brokers (IBKR) offers a competitive fee structure with no custody or platform fees, making it attractive for various investors.
• 💰 IBKR charges a fixed price per trade, capped at £6 for shares and ETFs, which is generally lower than percentage-based fees from traditional platforms.
• 📈 For long-term investors, using IBKR can result in significant savings compared to platforms with higher percentage fees.
• 📊 IBKR also provides access to transaction fee-free funds, further reducing potential costs for users.
• ⚖️ iWeb has an unusual fee structure, waiving the usual £100 account opening fee until June 30, 2024, which may appeal to lump-sum investors.
• 🤑 While iWeb charges £5 per trade, it can still be more economical than platforms like Hargreaves Lansdown or AJ Bell for occasional investors.
• 🌍 Investors should consider high FX fees on platforms like iWeb, which can impact overall costs.
• 💡 Robo-advisors like Moneybox may impose high fees for simple index fund investments, making it more beneficial to manage investments independently.
• 👥 The speaker invites viewers to ask questions in the comments and expresses a willingness to create detailed reviews of specific brokers if requested.
• 📅 The video aims to help viewers understand the different investment platforms available and choose one that aligns with their investment strategy and preferences.

Q & A

What is a stocks and shares ISA?

A stocks and shares ISA (Individual Savings Account) allows individuals to invest in various assets such as stocks, shares, and funds without paying capital gains tax on any profits made.

How do the fees of IBKR compare to other platforms?

IBKR does not charge custody or platform fees, offering a fixed price per trade capped at £6, which can be significantly cheaper than percentage fees charged by other platforms like HL and AJ Bell.

What are the benefits of using IBKR for investing?

IBKR is beneficial for investors looking for a combination of low fees and the ability to engage in more complex investment strategies, along with offering transaction fee-free funds.

What is the annual cost for a typical IBKR investor making monthly trades?

If an investor trades once a month at the fixed fee of £3 per trade, their total annual cost would be approximately £36.

What makes iWeb an attractive option for some investors?

iWeb is attractive due to its waived account opening fee until June 30, 2024, and a £5 per trade fee, which can be cost-effective for investors making lump-sum investments.

What additional fees should investors be aware of when using iWeb?

Investors should be cautious of iWeb's high foreign exchange (FX) fees and the 2% charge for reinvesting dividends, although this may not apply to accumulation index funds and ETFs.

Why does the speaker recommend avoiding robo-advisors like Moneybox?

The speaker suggests avoiding robo-advisors like Moneybox due to their high fees associated with basic index fund investing, encouraging viewers to educate themselves and invest directly.

What types of investments can be included in a stocks and shares ISA?

A stocks and shares ISA can include individual stocks, shares of companies, mutual funds, ETFs (Exchange Traded Funds), and other eligible securities.

How does the speaker engage with viewers after the video?

The speaker encourages viewers to ask questions in the comments and expresses willingness to create further detailed content based on viewer interest in specific brokers or platforms.

What is a key consideration for investors when choosing a platform?

A key consideration for investors is to assess the fee structure of different platforms, as lower fees can significantly impact overall investment returns over time.