IG vs interactive investor

Which one of these platforms is suitable for your investing needs?

Picture not described

Both interactive investor and IG are investment platforms that offer both share dealing and ready made portfolios. This means that they’ve both got offerings suitable for both beginner and intermediate investors. IG also offers riskier contracts for difference (CFDs), but as interactive investor doesn’t offer these, we won’t be comparing this feature.

Both providers have very similar offerings, with individual savings accounts (ISAs), self-invested personal pensions (SIPPs) and general investment accounts.

The main difference between the two is the cost structures, detailed below.

IG vs interactive investor: Vital statistics

IG Share Dealinginteractive investor Trading Account
Finder rating★★★★★★★★★★
Customer satisfaction rating★★★★★★★★★★
Stocks and shares ISA available?
FSCS protected?
Costs rating★★★★★★★★★★
Keep in mind71% of retail CFD accounts lose money
Go to site
More Info
Go to site
More Info

IG and interactive investor are similar providers when you look at the key statistics. They both offer ISAs and are protected by the Financial Services Compensation Scheme (FSCS), which means your deposits are covered by up to £85,000 if either provider were to go bust. This doesn’t pay out if your investments don’t perform well.

We’ve given both of these providers similar star ratings for costs, but they have vastly different pricing structures that could sway your decision – we’ve detailed these below.

In our 2021 customer satisfaction survey, interactive investor’s customers thought that it was easy to use and had good customer service. Some of its customers felt that it was well priced, while others thought the structure didn’t work for them.

IG’s customers praised its excellent customer service and found it to be inexpensive and easy to use. Customers found that it was really easy to open an account.

Round 1: Products

IG Share Dealinginteractive investor Trading Account
Stocks and shares ISA
Lifetime ISA (LISA)
Pension
Go to site
More Info
Go to site
More Info

Both of these providers let you invest in a stocks and shares ISA, which means you can use your annual ISA allowance to invest tax free. The allowance for the 2021/2022 tax year is £20,000.

They also both let you save up for your retirement by investing in a private pension. This means that you can’t start to withdraw until you turn 55, but you get some great tax advantages.

Neither product has the ability to invest in a lifetime ISA (LISA). These lets you save up to £4,000 per year for your first home or for retirement. The government contributes £1,000 for every £4,000 invested.

  • Winner: Tie

Round 2: Exchanges

IG Share Dealinginteractive investor Trading Account
Exchanges covered score★★★★★
UK - London Stock Exchange
US - NASDAQ
US - New York Stock Exchange
Canada - Toronto Stock Exchange
Japan - Japan Exchange Group
Euronext
Germany - Deutsche Börse
Keep in mind71% of retail CFD accounts lose money
Go to site
More Info
Go to site
More Info

Both of these providers let you invest in some of the largest stock exchanges in the world, including NASDAQ, NYSE and the London Stock Exchange.

  • Winner: Tie

Round 3: Financial instruments

IG Share Dealinginteractive investor Trading Account
Financial instruments score★★★★★★★★★★
Shares
ETFs
Bonds
Funds
Keep in mind71% of retail CFD accounts lose money
Go to site
More Info
Go to site
More Info

Both interactive investor and IG let you invest in shares, exchange traded funds (ETFs), bonds and funds.

  • Winner: Tie

Round 4: Portfolios

IG Share Dealinginteractive investor Trading Account
Portfolios rating★★★★★★★★★★
Risk assessment quiz
Number of portfolios on offer55
Ethical portfolios on offer
Managed portfolios on offer
Go to site
More Info
Go to site
More Info

For those looking for ready-made investments, both of these providers have this as an option. Both providers have 5 portfolios to choose between, including managed portfolios and ethical portfolios.

IG has a risk assessment quiz, which helps you choose investments by asking you questions about how you feel about risk, how long you want to invest for and how much money you have to invest.

  • Winner: IG

Round 5: Costs

IG Share Dealinginteractive investor Trading Account
Costs rating★★★★★★★★★★
Minimum deposit£250£1
Standard platform charge0%
Best platform charge0%
Standard trading fee£8£7.99
Best trading fee£3£7.99
Keep in mind71% of retail CFD accounts lose money
Go to site
More Info
Go to site
More Info

IG charges based on how much you invest, while interactive investor charges a flat monthly fee. Interactive investor has the lower minimum deposit here, requiring you to only invest £1.

We’ll compare the fees in two parts: ready made portfolios and share dealing.

Ready made portfolios

IG’s fees are pretty simple. For its “smart portfolio”, it charges 0.72% on investments up to £50,000 made up of a 0.50% IG management fee, an average of 0.15% in fund costs and 0.07% for transaction costs. For investments over £50,000 it charges 0.22%, made up of an average of 0.15% in fund costs and 0.07% in transaction costs. You pay no IG management fee over £50,000.

interactive investor has a flat fee for using all of its services (an additional fee applies if you want to add the self-invested personal pension). Its most basic plan “Investor” costs £9.99 per month.

What does that actually mean?
If you invest £10,000 with IG, then you’ll spend £72 (in a year).
If you invest £10,000 with interactive investor then you’ll spend £119.88 (in a year).

Many investment platforms have calculators that help you work out the costs of your investments based on a figure you enter. Neither IG nor interactive investor has this, so we did it the old fashioned way, with a calculator, pen and paper using the costs outlined above.

Share dealing

The trading fees are pretty much the same with these providers, with interactive investor being a penny cheaper. However, IG doesn’t have a provider fee for share dealing, while interactive investor would still cost you a minimum of £119.88 per year in provider fees.

  • Winner: IG

Round 6: Features

IG Share Dealinginteractive investor Trading Account
Features rating★★★★★★★★★★
Desktop or web access
iPhone app
Android app
In-app news and research
In-app top-up
Go to site
More Info
Go to site
More Info

Both providers have desktop or web apps. They also both allow you to view your investments in their mobile apps, available with iOS and Android. You can top up and see news and research in the apps too.

  • Winner: Tie

Round 7: Learning resources

IG Share Dealinginteractive investor Trading Account
Resources rating★★★★★★★★★★
Guides
Videos and walkthroughs
Demo account
In-depth learning tools
Keep in mind71% of retail CFD accounts lose money
Go to site
More Info
Go to site
More Info

Both IG and interactive investor have a great range of learning resources to help you learn about investing. You can view guides, watch videos and use both platforms’ demo accounts – good if you want to learn how to invest, but also to help you decide if you like the provider.

IG’s main advantage is “IG Academy”, its dedicated learning tools. You can follow a set course with videos and quizzes in its dedicated app.

  • Winner: IG

Overall winner: Is IG better than interactive investor?

These platforms are, on the face of it, very similar. Typically, you’d work out better price-wise with interactive investor if you plan to open several different trading accounts (such as a JISA, an ISA and a general investment account), as you can open as many as you want for your flat fee.

IG’s learning resources are a lot better than interactive investor’s, and it’s better for ready made portfolios.

Compare platforms similar to IG and interactive investor

Table: sorted by promoted deals first
Name Product Price per trade Frequent trader rate Platform fees Brand description
eToro Free Stocks
£0
N/A
£0
Capital at risk. 0% commission but other fees may apply. The minimum deposit with eToro is $200.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
£0
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. The minimum deposit with HL is £1. Capital at risk.
Freetrade
Finder Award
Freetrade
£0
N/A
£0
Claim your free share worth between £3 and £200. Capital at risk.
Degiro Share Dealing
UK: £1.75 + 0.014% (max £5)
US: €0.50 + $0.004 per share
N/A
£0
Degiro is widely seen as one of the best low-cost share brokers, for people who are looking to trade regularly. The minimum deposit with Degiro is £0. Capital at risk.
interactive investor Trading Account
£7.99 (with one free trade per month)
N/A
£9.99 per month
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. The minimum deposit with ii is £0. Capital at risk.
loading

Compare up to 4 providers

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.

More guides on Finder

  • Klarna vs PayPal: Compare popular buy now pay later platforms

    Klarna and PayPal are two of the biggest names in the online payment industry. So which should you use for your next purchase? We compare the two.

  • The best stock trading apps and platforms in the UK

    We’ve taken a look at some of the best trading apps in the UK and explained who they’re best suited to. Our table compares fees and services too.

  • How to invest in cryptocurrency

    Learn how to get started investing in cryptocurrency, the methods available to you, and what to keep in mind before making your first purchase.

  • The 7 best stock trading apps and platforms in the UK

    We’ve taken a look at some of the best trading apps in the UK and explained who they’re best suited to. Our table compares fees and services too.

  • IPO vs direct listing: What’s the difference?

    Find out the difference between an IPO vs direct listing when companies choose to float on a stock exchange. We’ve compiled the key differences between the two.

  • Best shares to buy now

    We’ve compiled the top trending stocks from leading investment platforms to see which stocks people are buying today.

  • Why it pays to be a patient investor

    One way to develop healthy investing habits is to make regular contributions to your investment pot over a period of time, instead of investing a large lump sum. This is called “pound-cost averaging”. It’s a way of investing without trying to time the market.

  • Best shares to buy now

    We’ve compiled the top trending stocks from leading investment platforms to see which stocks people are buying today.

  • Interactive Brokers review

    Find out what we thought of Interactive Brokers, some key features, information about its platforms and how much Interactive Brokers costs.

  • How to trade Pink Sheet stocks

    Find out about Pink Sheet Stocks are, including some examples of Pink Sheet Stocks, the risks involved and how to invest in some.

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked
Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site