Top 5 Affordable ETF Stocks & Shares ISAs in the UK (2023)

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Embark on a rewarding investment journey with an ETF Stocks & Shares ISA that aligns with your financial goals without digging deep into your pockets. As we embrace 2023, numerous platforms rise to the occasion, offering competitive fee structures alongside a myriad of investment choices. Let’s delve into the top 10 affordable platforms that are making waves in the UK investment sphere:

Stocks & Shares ISA Platform Fees

Platform fees are charged by the platform provider as a fee for using their servce (website/app).

The Cheapest ISA Provider: Trading 212 – £FREE

  1. Trading 212
  • Minimum Deposit: £1
  • ISA Fee: Free
  • Investing Commission: £0
  • Products: Stocks, ETFs, Investment Trusts

2. InvestEngine

  • Minimum Deposit: £100
  • ISA Fee: Free (0.25% for managed portfolios)
  • Investing Commission: £0
  • Products: ETFs

3. Vanguard

  • Minimum Deposit: £500 (or £100/month)
  • ISA Fee: 0.15% (capped at £375/year)
  • Investing Commission: £0
  • Products: Index Funds & ETFs

4. Freetrade

  • Minimum Deposit: £0 for Basic Account (ISA available with a subscription)
  • ISA Fee: £3/month for ISA account
  • Investing Commission: £0
  • Products: Stocks, ETFs

5. AJ Bell

  • Known for its low platform fee structure and being one of the largest investment platforms in the UK.

In addition to the Platform Fees you will pay an ongoing charge which is set by the ETF company (rather than the Platform).

Cheapest Passive Tracker ETFs in the UK

Passive Tracker ETFs are a low-cost way to gain exposure to a diversified portfolio reflecting the performance of specific indices. Here are some of the notable passive tracker ETFs in the UK as of 2023:

  • Vanguard FTSE 100 ETF: This ETF tracks the top 100 UK companies by market capitalization, offering a low-cost solution for investors interested in the UK market​1​.
  • iShares Core FTSE 100 UCITS ETF: Similar to the Vanguard FTSE 100 ETF, this ETF also tracks the FTSE 100 index, which comprises the top 100 large-cap companies in the UK​2​.
  • Fidelity Index US, HSBC American Index, and Xtrackers S&P 500 UCITS ETF: These ETFs are some of the cheapest options to track the performance of the 500 largest US firms, with an Ongoing Charges Figure (OCF) of 0.06%​3​.

Each of these ETFs provides a unique opportunity to invest in a broad market or specific sectors with a relatively low fee structure. It’s crucial to compare the Total Expense Ratio (TER), trading fees, and other costs associated with each ETF to determine the most cost-effective choice for your investment goals.

Trading Fees/Commission

Trading fees/commission are charged on each trade/transaction. It used to be normal to pay £12.95 per trade, many old school providers still charge this sort of money. In this day and age you shouldn’t be paying any such fees. Trading 212 and Freetrade are both fee/commission free – i.e. no such charges at all.

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