The Best Stocks & Shares ISA In 2025

Summary

In this video, the creator provides a detailed comparison of various stocks and shares ISAs available in 2025. They focus on factors like FCA registration, individual stock options, low fees, and the presence of tax-free benefits. The video critiques platforms like Robinhood, Vanguard, and FreeTrade for their shortcomings, and highlights the potential risks of using platforms like InvestEngine and Lightyear due to financial instability. Ultimately, the creator endorses Trading 212 as the top choice for its competitive fees, user-friendly features, and continuous platform improvements, making it the ideal ISA for 2025.

Takeaways

• 😀 Stocks and shares ISAs offer a tax-free allowance of £20,000 in the UK, allowing you to invest without paying tax on any profits.
• 📉 Many UK investors do not take full advantage of the tax benefits provided by stocks and shares ISAs, leaving them at a disadvantage.
• ⚠️ Platforms like Robinhood and Vanguard have limitations, such as not offering the option for individual stocks or charging high fees.
• 💸 Fees are a crucial factor when choosing a platform, as lower fees mean more money in your pocket every time you buy or sell stocks.
• 🔍 It’s important to choose an FCA-regulated platform to ensure your investments are protected.
• 💡 Invest Engine is a good option for buying Vanguard funds at cheaper rates, but it doesn’t offer individual stocks and has profitability concerns.
• 👎 eToro’s stocks and shares ISA is not recommended, as it only offers managed ISA solutions and not individual stock control.
• 💼 FreeTrade has become more expensive in recent years, with a £6 per month subscription fee and other hidden costs, making it less attractive than before.
• 🔴 Hargreaves Lansdown and AJ Bell are well-known platforms but are too expensive for regular use, particularly with high account and transaction fees.
• 📊 Trading 212 is the best stocks and shares ISA platform for 2025, offering no trading commission, low fees, fractional shares, and continuous platform improvements.
• 🌍 Trading 212 allows 24-hour trading, the ability to invest in global currencies, and free withdrawals, which sets it apart from other platforms.

Q & A

What are the four key factors to consider when choosing a stocks and shares ISA?

The four key factors are: 1) FCA registration, ensuring the platform is safe and regulated, 2) the ability to buy individual stocks (not just ETFs), 3) cheap fees for transactions and account maintenance, and 4) the option to open a stocks and shares ISA.

Why is using a stocks and shares ISA beneficial in the UK?

Using a stocks and shares ISA allows you to invest up to £20,000 per year without paying any tax on your capital gains or dividends. This is one of the best tax-free benefits available in the UK, but many people don't take full advantage of it.

Why is Robinhood not recommended for UK users looking for a stocks and shares ISA?

Robinhood does not offer a stocks and shares ISA in the UK, which makes it unsuitable for users seeking tax-free investment benefits through an ISA.

What is the issue with Vanguard's platform for UK investors?

Vanguard is not ideal for UK investors because it doesn't allow the purchase of individual stocks and has high account fees (nearly £4 per month). Additionally, there have been issues with recent pricing changes, making it less attractive compared to other platforms.

Why might InvestEngine be a decent choice but not the best?

InvestEngine offers low fees and is free to open an ISA, making it a solid option. However, it only allows investment in ETFs and not individual stocks, and there are concerns about the company's profitability, which raises questions about the long-term sustainability of the platform's low fees.

What are the concerns regarding the use of eToro for a stocks and shares ISA?

eToro uses MoneyFarm for stocks and shares ISAs, meaning the investments are managed for you and you lose control over where your money is allocated. This makes it less appealing for investors who want more hands-on control over their investments.

Why has FreeTrade fallen in popularity in recent years?

FreeTrade has become more expensive, with a monthly subscription fee of nearly £6 and additional charges on foreign exchange transactions. This makes it less appealing for users seeking a low-cost platform for buying and selling stocks.

What makes HL (Hargreaves Lansdown) a less ideal option for UK investors today?

Hargreaves Lansdown, while a trusted and well-known platform, is often considered too expensive compared to newer platforms. Investors realize the high account fees and transaction costs, which eventually push them to seek cheaper alternatives.

Why is Trading 212 considered the best stocks and shares ISA platform for 2025?

Trading 212 stands out due to its low fees, the ability to buy fractional shares, access to over 13,000 stocks and ETFs, and the platform's consistent improvements. It is FCA regulated, offers tax-free benefits through a stocks and shares ISA, and allows 24-hour trading, making it ideal for both new and experienced investors.

What are the benefits of using fractional shares on Trading 212?

Fractional shares allow investors to buy partial shares of stocks, starting from as low as £1. This is beneficial for smaller investors or those looking to diversify their portfolio without committing large sums of money.