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In conjunction with the launch of our brand new Stocks and Shares ISA comparison, The Armchair Trader has performed research across all Self-Select ISA providers to bring you a list of the best stocks and shares ISAs available.

Now, there are a number of variables in place that make direct broker comparisons extremely difficult. Some quote fixed costs while others charge a percentage of an overall trade.

The key, then, to finding the best stocks and shares ISAs lies in an investor having some idea of what they are likely to invest over the next 12 months, and how regularly. With this in mind we have put together three fairly typical scenarios; infrequent trades of stocks and shares; infrequent fund investing; and regular traders of stocks and shares, designed to help you compare brokers on a like-for-like basis.

Scenario #1. Infrequent Stocks and Shares Investor

In our first scenario, this typical infrequent stocks and shares investor will take up his or her full £20,000 ISA allocation, trading up to 10 times over a twelve month period.

Broker Fees Cost per annum
Trade from £4.99 on UK stocks, plus a custody fee of 0.12% per annum charged on accounts with open positions (min monthly fee of EUR 5). Find out more >> £73.99
Ig Group £8.00 on all UK stocks, plus a platform fee of £24.00 per quarter which can be offset with three trades over the period. £96.00
Barclays £6.00 with an additional 0.1% platform fee per annum £108.00
£7.50 for trades less than £750 or 1% for £750+ trades. There’s an additional £4+VAT monthly platform fee £123.00*
£9.95 plus an additional platform fee of £7.50 per quarter £129.50
£7.50 plus an additional maximum 0.4% platform fee per annum £155.00

Data correct as of 28th February 2018
*Cost based on value of all 10 trades being under the £750 threshold

Scenario #2. Investing in Funds

In our second scenario, this typical investor in funds will take up his or her full £20,000 ISA allocation, investing in up to 5 funds over a twelve month period.

Broker Fees Cost per annum
Platform fee of 0.15% £30.00
Platform fee of 0.25% £50.00
Platform fee of 0.25% £50.00
0.25% platform fee plus an additional £1.50 transaction fee per transaction £57.50
Fixed platform fee of £57.80 £57.80
Platform fee of 0.30% £60.00
Barclays Platform fee of 0.20% plus an additional £3 transaction fee per transaction £63.00

Data correct as of 28th February 2018
*Platform fees exclude fund manager fees for each fund held, which are variable depending on your broker.

Scenario #3. Regular Stocks and Shares trading

In our third scenario, this typical investor in stocks and shares will take up his or her full £20,000 ISA allocation, trading up to 120 times over the course of a year.

Broker Fees Cost per annum
Trade from £4.99 on UK stocks, plus an additional 0.12% monthly platform fee, starting with a minimum £5.00. Find out more >> £598.80
£4.95 plus an additional platform fee of £7.50 per quarter £624.00
Ig Group £5.00 plus an additional platform fee of £8 per month £696.00
Barclays £6.00 plus an additional 0.1% platform fee £768.00
£6.00 plus an additional 0.30% platform fee £780.00

Data correct as of 28th February 2018

The best Stocks and Shares ISAs

As you can see from the above tables, the savings can be considerable over the course of a 12 month period, and that’s just across the cheapest providers. There are even more savings to be made across the full range of providers

AJ Bell and Barclays Smart Investor both have a presence on each of our best buy tables while the share centre features well for investors that prefer to purchase and hold their investments. Saxo Capital Markets could prove to be a big cost saver for frequent stocks and shares traders that are interested in a wide range of stocks worldwide.

It is important that you make the right decision based on your investment habits. You can only open one Stocks and Shares ISA per year so if you are unsure, choosing a solid all-rounder will serve you well.

You can take a look at our Stocks and Shares ISA comparison to view our comprehensive list of providers or learn more with our Investment ISAs Guide.

 

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Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.

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