UK Low-Cost Investing Platforms Guide (Cheapest Brokers 2026)

Platform Fee Comparison 2026

The platform fee (also called the account fee or annual management charge) is the most significant ongoing cost. In 2026, the major platforms charge: Vanguard — 0.15% per year, capped at approximately £375 on large portfolios. This is the lowest percentage fee in the market. However, Vanguard only offers Vanguard's own funds — you cannot buy shares, ETFs from other providers, or investment trusts. For a £50,000 portfolio, Vanguard charges £75 per year. Fidelity — 0.35% per year, with no cap. For a £50,000 portfolio, Fidelity charges £175 per year. Fidelity offers a much wider investment choice than Vanguard, including shares, ETFs, and investment trusts. Hargreaves Lansdown — 0.45% per year on funds (capped at £45 per year for shares and ETFs). For a £50,000 portfolio in funds, HL charges £225 per year. HL's share-dealing account has an annual fee of £45 (capped) plus dealing charges. AJ Bell — 0.25% per year on funds, capped at £42 per year for shares and ETFs. For a £50,000 portfolio in funds, AJ Bell charges £125 per year. AJ Bell offers a good balance of cost and investment choice. Interactive Investor — £14.99 per month (£179.88 per year) flat fee. This is a fixed fee regardless of portfolio size, making it excellent for large portfolios. For a £50,000 portfolio, Interactive Investor costs £180 per year — more than Vanguard but includes more features. As a general rule: fixed fee better for larger portfolios >£50k — Interactive Investor's flat fee becomes cheaper than percentage-based platforms once your portfolio exceeds approximately £50,000–£100,000. Percentage better for smaller portfolios — Vanguard's 0.15% is cheapest for portfolios under £50,000. Always calculate the total cost based on your specific portfolio size and dealing frequency. How fees affect your returns →

Dealing Costs

In addition to platform fees, dealing costs apply when you buy or sell investments. These vary significantly by platform: Vanguard — £0 dealing on Vanguard's own funds. This is a major advantage if you are happy to invest only in Vanguard funds. You cannot buy shares, ETFs from other providers, or investment trusts on Vanguard's platform. Fidelity — £7.50 per trade for UK shares, £0 on fund trades. Regular investing (monthly) from £25 allows free fund purchases. Fidelity's regular investing service is one of the best for building a portfolio gradually. Hargreaves Lansdown — £11.95 per trade for UK shares (reduced to £8.95 for frequent traders). Fund dealing is free. HL's dealing costs are the highest among the major platforms for share trading. AJ Bell — £9.95 per trade for UK shares. Fund dealing is free. Regular investing from £25 per month at £1.50 per trade. AJ Bell's regular investing cost is competitive. Interactive Investor — £3.99 per trade for UK shares (with pre-paid packs) or £9.99 per trade without. Fund dealing is free. Interactive Investor offers a "trade pre-pay" service where buying 10 trades costs £39.90 — the cheapest for frequent traders. Regular investing from £25–100/month — most platforms offer lower dealing costs for regular monthly investing. If you invest monthly, choose a platform with low regular dealing costs. Vanguard is cheapest (free fund trades), followed by AJ Bell (£1.50) and Interactive Investor (£3.99 with pre-pay). The difference in dealing costs matters most if you trade frequently. For a buy-and-hold investor making 12 purchases per year, dealing costs are a secondary concern to platform fees. However, if you trade weekly or manage an active portfolio, dealing costs become a major factor. S&S ISA dealing costs →

Best for Different Portfolio Sizes

The cheapest platform depends heavily on your portfolio size. Here is a breakdown by portfolio value for 2026: Small £1–25k — Vanguard at 0.15% is the cheapest. A £10,000 portfolio costs just £15 per year. Fidelity is next at £35 per year. Interactive Investor's flat £14.99/month is too expensive for small portfolios. Medium £25–100k — AJ Bell (0.25% capped at £42) or Fidelity (0.35%) are competitive. At £50,000, AJ Bell costs £125, Fidelity £175, and Vanguard £75. Vanguard remains cheapest but limits investment choice. Interactive Investor at £180 per year starts to become competitive above £60,000. Large £100–500k — Interactive Investor's flat £14.99/month (£179.88/year) becomes the cheapest option. A £200,000 portfolio with Interactive Investor costs £180 per year. With Vanguard it would be £300 (0.15% of £200k). With AJ Bell it would be £500 (0.25% of £200k, with the cap not applying to funds). Interactive Investor is the clear winner for large portfolios. Very large £500k+ — fixed fee platforms (Interactive Investor) are much cheaper than percentage-based platforms. At £500,000, Interactive Investor costs £180 (flat) vs Vanguard at £750 (0.15%) vs AJ Bell at £1,250 (0.25%). Some percentage platforms cap at approximately £45/month (e.g., iWeb charges a flat fee). For very large portfolios, consider iWeb (£5 per deal, no ongoing platform fee) or Interactive Investor's flat fee. The tipping point where fixed fee beats percentage is typically around £50,000–£100,000, depending on the specific platform fees and your dealing frequency. Re-assess your platform choice as your portfolio grows — what was cheapest at £10,000 may be expensive at £100,000. Investment platforms for beginners →

Fund and Investment Choice

The range of investments available on each platform varies significantly. Vanguard — only Vanguard's own funds (approximately 80 funds). No shares, ETFs from other providers, or investment trusts. This is the most significant limitation of Vanguard's platform. If you want to invest in a simple, low-cost global tracker fund, Vanguard is ideal. If you want to build a more complex portfolio with specific exposures, you will need a different platform. Fidelity — over 3,000 funds from many providers, plus shares, ETFs, investment trusts, and bonds. Fidelity's Select 50 list highlights preferred funds with lower charges. The widest investment choice among the major platforms. Hargreaves Lansdown — over 3,000 funds, plus shares, ETFs, investment trusts, and bonds. HL's Wealth 50 list (formerly Select 50) provides curated fund recommendations. Excellent for investors who want access to every major investment type. AJ Bell — all major funds, ETFs, shares, investment trusts, and bonds. AJ Bell's fund range is comparable to Fidelity and HL, though the platform has fewer actively managed funds in its preferred lists. Interactive Investor — all major funds, ETFs, shares, investment trusts, and bonds. Interactive Investor's "Super 60" list provides curated fund and trust ideas. The range is comprehensive, covering all major asset classes and providers. For most investors choosing a simple global tracker, any platform works. If you plan to invest in specific sectors, individual shares, or investment trusts, choose a platform with broad investment choice (Fidelity, HL, AJ Bell, Interactive Investor). If you only need Vanguard funds, Vanguard's platform is the cheapest and simplest option. ETF investing guide →

Additional Features

Beyond fees and investment choice, additional features can significantly affect your experience. Mobile app quality: Hargreaves Lansdown has the best mobile app in the UK — well-designed, functional, and regularly updated. Fidelity's app is functional but basic — suitable for portfolio review but less intuitive for trading. AJ Bell's app is good for both reviewing and trading. Interactive Investor's app is decent but not market-leading. Vanguard's app is simple and focused on its own funds — functional but limited. Research: Hargreaves Lansdown offers outstanding research — daily market commentary, analyst reports, fund manager interviews, and model portfolios. Fidelity's Select 50 research is good but less extensive. Interactive Investor's expert articles and Super 60 list provide useful insights. AJ Bell offers decent research but less than HL. Customer service: all five platforms are rated good to excellent for customer service by Which? and other reviewers. HL and Interactive Investor consistently score highest for phone and online support. ISA and SIPP: all five offer both ISAs and SIPPs (Self-Invested Personal Pensions). SIPP fees are typically higher than ISA fees due to additional administration. Compare SIPP fees specifically if you are opening a pension. Regular investing: all offer regular investing plans with lower dealing costs. Most allow monthly contributions from £25–£100 with fees of £0–£2 per trade. Ethical investing: all five have ethical and sustainable fund options. Fidelity and Interactive Investor have dedicated ethical fund lists and filtering tools. Vanguard offers several ESG funds. Choose a platform that matches your values if sustainable investing is a priority. The best platform is not always the cheapest — a better app, superior research, or better customer service may justify higher fees for some investors. Consider your priorities and weight them accordingly. SIPP platform comparison →

Platform vs Human Advice

A separate but related decision is whether to use a DIY platform or a financial adviser. DIY platform — lower cost (0.15–0.45% per year), full control over investment decisions, suitable for confident investors who understand asset allocation and risk management. The DIY approach works well for: basic investment strategies (global tracker funds, target date funds), investors who enjoy research and decision-making, and people with straightforward financial situations (employed, no complex tax issues, standard retirement goals). Advised service — typically 0.5–1% of assets per year for ongoing advice, plus initial fees (1–3%) for setting up a financial plan. Recommended for: complex financial needs (business owners, multiple income streams, international considerations), approaching retirement (pension drawdown, annuity decisions, tax planning), inheritance and estate planning, pension consolidation and defined benefit transfer decisions (legally required advice for transfers over £30k), and tax-efficient investment strategies for high earners (EIS, VCT, SEIS). Hybrid option: robo-advisor — Nutmeg, Moneyfarm, and Wealthify offer automated portfolio management at 0.25–0.75% per year plus fund fees (typically 0.1–0.3%). Robo-advisors build and manage a diversified portfolio based on your risk tolerance. They are cheaper than human advisers but more expensive than DIY platforms. Suitable for investors who want a hands-off approach without the cost of a human adviser. The best choice depends on your confidence, complexity, and budget. Many investors start with a DIY platform when their portfolio is small, switch to a robo-advisor as it grows, and engage a human adviser when approaching retirement or dealing with complex financial situations. There is no right answer — only what fits your circumstances. Getting started with investing →

FAQs

Which UK investing platform is cheapest?

Vanguard is cheapest for portfolios under £50,000 (0.15% fee). Interactive Investor is cheapest for portfolios over £100,000 (flat £14.99/month). AJ Bell offers a good mid-range option with a cap on share dealing. The best platform depends on your portfolio size, dealing frequency, and investment choices.

Can I hold ETFs on Vanguard's platform?

Yes, but only Vanguard's own ETFs. You cannot buy ETFs from other providers (like iShares, SPDR, or Invesco) on Vanguard's platform. If you want access to the full range of ETFs, choose Fidelity, Hargreaves Lansdown, AJ Bell, or Interactive Investor instead.

How often should I switch platforms?

Review your platform annually, especially as your portfolio grows. The cheapest platform at £10,000 (Vanguard) is not the cheapest at £200,000 (Interactive Investor). Many platforms charge transfer-out fees (£25–£50), and transferring ISAs and SIPPs takes 2–4 weeks. Factor these costs into your decision before switching.

Do I pay VAT on platform fees?

Yes, platform fees are subject to VAT at 20% in the UK. The headline fee (e.g., 0.15%) is typically exclusive of VAT, so the total cost is 0.18% including VAT. Always check whether advertised fees include or exclude VAT to compare accurately.

Should I use a robo-advisor instead of a DIY platform?

Robo-advisors are suitable if you want hands-off investing and are willing to pay 0.25–0.75% per year for automated portfolio management. They are cheaper than human advisers but more expensive than DIY platforms. Choose a robo-advisor if you lack confidence in building your own portfolio; choose a DIY platform if you want lowest cost and are comfortable making your own investment decisions.