interactive investor review

If you’re looking to open several trading accounts, such as an ISA for you and a JISA for each of your kids, then interactive investor might be a suitable platform for you as it has a flat-fee for everything (except it adds an extra £10 per month for its pension). Find out what we think of interactive investor, including details about its costs, what you can invest in and its pros and cons.

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• Over 40,000 UK and global stocks to choose from
• Reduce foreign exchange costs by managing money in 9 currencies
• One free trade per month
• Start investing today for a flat fee £9.99 a month

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What is interactive investor?

interactive investor (yes, that’s intentionally all lower case, sometimes referred to as just “ii”) is an online investment service offering a range of different investment products, all with flat fees. It has plenty of products available and the opportunity to invest in shares, funds, investment trusts, exchange-traded funds (ETFs), venture capital trusts (VCTs), bonds and gilts. interactive investor has been listed as one of our best share trading apps of 2021 for investing in funds.

How does interactive investor work?

For a flat fee starting at £9.99 per month, interactive investor takes care of your assets and gives you a set number of trades per month – this depends on which service plan you choose (we’ll get on to the service plans in a moment).

You don’t have to pay additional service fees if you want to have more than one account with interactive investor, so you can have a trading account, stocks and shares ISA and a junior ISA all for one flat fee. It’s a great option if you plan to use your full annual ISA allowance and trade further as well as, say, opening a junior ISA for several kids.

As with many rules, there’s an exception. On the self-invested personal pension (SIPP for short), you’ll pay an additional £10 per month.

What products does interactive investor offer?

interactive investor has 9 different accounts available. These include:

• Self-invested personal pensions (SIPPs)
• Individual savings accounts (ISAs)
• Trading accounts
• Junior ISAs
• Joint trading accounts
• Free research accounts
• Company accounts
• Pension trading
• Cash trading

What are interactive investor’s service plans?

There are 3 service plans and you can choose one that suits you.

How much does interactive investor cost?

Unlike other investment platforms, interactive investor charges flat fees instead of taking a percentage from your investments. You can choose a service plan based on what you’re looking for. These plans start at £9.99 per month and, as we mentioned above, cover multiple accounts.

You get some of this monthly service fee back in the form of a number of trades that you can make each month. We’ve detailed some of the fees for each service plan below.

All prices below relate to trades under the value of £100,000 (or £25,000 internationally), the charges above this are explained in more detail below.

Other interactive investor fees

• Buying or selling UK shares over the value of £100,000

  Trade value	Investor	Funds fan	Super investor
  £100,000 to £500,000	£40	£40	£36
  Over £500,000	£70	£70	£66

• Buying or selling US shares over the value of £100,000

  Trade value	Investor	Funds fan	Super investor
  Over £100,000	0.04% of trade value	0.04% of trade value	0.04% of trade value

• Buying or selling other international shares over the value of £25,000

  Trade value	Investor	Funds fan	Super investor
  Over £25,000	0.1% of trade value	0.1% of trade value	0.1% of trade value

• Foreign exchange

  Between 0.25% and 1.50% depending on the transaction value.

• Withdrawing cash

  Cash withdrawals are free for sterling and euro withdrawals, unless you require an urgent bank transfer in which case it is £15 and €30 respectively (for sterling the cost is £25 if you are withdrawing over £100,000).

  All other currencies are detailed below.

  Currency	US dollar	Canadian dollar	Australian dollar	Singapore dollar	Hong Kong dollar	Swiss franc	Swedish krona
  Withdrawal charge	US$35	CAD$45	AUD$45	SGD$50	HKD$250	CHF35	Kr250

• Admin charges

  Service	Fee
  Transfer investments from another provider	Free
  Deposit a share certificate	Free
  Holding funds	Free
  Transferring investments to another provider	Free
  Share certificate withdrawal	£35 + VAT per certificate
  Failed payments (e.g. bounced payments and failed direct debits)	£25
  Late settlement	£25 or currency equivalent + 15% above Bank of England Base Rate
  Sell out fee (due to non payment)	£40 + trading commission
  Paper documents	£3 + VAT per document
  Contract notes sent by post	£1 + VAT per document
  Registered post	£10
  Valuation of holdings for probate	£10 + VAT per line of stock
  VCTs processing charge	£30 per application
  CREST personal membership account fee	£4.99 + VAT per month
  Non UK resident	£3.99 per month
  Non-personal accounts (such as company accounts and trust accounts)	£29.99 per month

• SIPP fees

  Service	Fee
  Set-up	Free
  Transfers in	Free
  SIPP fee	£10 per month (in addition to service plan charge)
  Transfer to another pension provider (UK)	Free
  Transfer to another pension provider (overseas)	£500 + VAT
  Pension sharing on divorce	£300 + VAT
  Closing your SIPP	Free
  Payment of death benefits	Based on time spend and complexity – typically between £200 and £500 + VAT
  Pension drawdown fee	£10 per month (in addition to SIPP fee)
  Single payment outside monthly payment date	Free
  Changing between flexi-access and capped drawdown	Free
  Additional amount allocated to capped drawdown	Free
  Review of capped income drawdown	£50 + VAT
  Uncrystallised funds pension lump sum	£50 + VAT
  Small pots	£50 +VAT
  Annuity purchase	£75 + VAT per transfer

• Government charges

  Service	Fee
  UK Stamp Duty	0.5%
  Irish Stamp Duty	1%
  UK PTM levy	£1
  ITP levy	€1.25
  Hong Kong transaction levy	0.0027%
  Hong Kong trading fee	0.005%
  Hong Kong Stamp Duty	0.1%
  Singapore clearing fee	0.0325%
  French Financial Transaction Tax	0.3%
  Italian Financial Transaction Tax	0.1%

What can I invest in with interactive investor?

interactive investor has thousands of options when you’re choosing the companies to invest in, with over 40,000 UK, US and international shares on 17 global exchanges.

There are over 3,000 funds to choose from, alongside ETFs, bonds, gilts and VCTs.

• Shares

  A share is an investment in a company, which can offer the potential for large-scale returns.

  • No set-up fees or percentage-based custody charges.
  • Get interactive investor’s lowest share dealing rate when trading online in the first 3 months.
  • Use its mobile app to trade on the move.
  • Buy and sell shares in the UK, US, Canada, Germany, Australia, Hong Kong and elsewhere.

• Unit trusts and OEICs

  Unit trusts and open-ended investment companies (OEICs) are a collective investment.

  • Pool your money with other investors to invest more efficiently in bond and stock markets.
  • Open-ended funds are where more shares are issued each time someone invests, and then sold when they exit.
  • You may be charged an up-front fee and then ongoing annual management charges.

• Investment trusts

  Choose a trust that aligns itself with your goals and the risks you’re willing to take. interactive investor then decides which shares, bonds, property and other assets to invest in on your behalf.

  • Purchasing a share in an investment fund signs you up to buy an interest in all the companies it has invested in.
  • Get interactive investor’s lowest share dealing rate when trading online in the first 3 months.
  • Use its “Quickrank Tool” to find information, performance data and statistics about all 600+ of its investment trusts.
  • Build your holdings by making investments from as little as £25 per month and avoid the hassle of deciding on the best time to buy.

• Exchange-traded funds (ETFs)

  These are collective funds traded on the stock exchange.

  • Bought and sold in the same way as normal shares, but you won’t have to pay stamp duty as this has already been paid on the underlying investments held by the ETF.
  • You will need to pay tax on profits made from investment in an ETF.

• Bonds and gilts

  These are typically low-risk fixed income investments.

  • Corporate bonds are given by corporations and gilts are bonds issued by the British government, to borrow money.
  • There are various types of gilts but most will typically pay a fixed coupon biannually and mature on a set date in the future.
  • All gilts and some corporate bonds are exempt from capital gains tax (CGT). However, you’ll still be liable to pay income tax on interest you earn, unless your bonds are held in an ISA.

• New issues and IPOs

  These are investments available to the public before they trade on the open market.

  • Introduced by companies to expand business, raise capital, pay down debt and finance other activities.
  • You won’t have to pay commission on your investment.
  • Exclusive IPOs available to interactive investor.
  • Get access to the best deals from private company offers to investment trusts.

• Values-based investing

  This is investment that takes into consideration ethical, environmental, social and governance values as well as their potential financial returns.

  • Invest in projects that deliver positive change.
  • Incorporates a range of strategies from listed equity funds through to private equity investments.

interactive investor general investment account

interactive investor’s general investment options, such as the trading account, joint trading account and company account, allow you to invest without an upper limit.

Key features include:

• You can withdraw your money whenever you like.
• 40,000 UK and global stocks to choose from.
• You can manage your money in up to 9 currencies.

It’s worth noting that you may need to pay capital gains tax on your profits. Generally, people would turn to the ISA before general investment if they haven’t used their ISA allowance for the year.

If you invest in a general investment account, you could be subject to capital gains tax. This is a tax that you have to pay on any gains over £12,300 in each tax year.

interactive investor ISAs

interactive investor’s ISA options, including the stocks and shares ISA and the junior ISA (JISA), allow you to invest up to your tax allowance (£20,000 for the 2021/2022 tax year) tax-free. The annual JISA allowance for 2021/2022 tax year is £9,000.

Key features of the interactive investor ISA include:

• You can use your ISA allowance.
• No withdrawal penalties.
• Generates impartial intelligence daily to help you make decisions.
• You choose your own investments – if you want some help then the interactive investor’s investment experts provide ready-made portfolios and fund recommendations.

interactive investor SIPP

interactive investor’s self-invested personal pension allows you to invest long term with the benefit of tax relief on your contributions. It is suitable for experienced investors who are happy to make their own investment options. Your pension is locked until you turn 55, after which you have several drawdown options.

Key features include:

• Freedom to choose and manage your own investments.
• More than 40,000 UK and global stocks.
• Expert tips and information, including impartial information, selected funds, ready-made portfolios and newsletters.
• Invest in multiple currencies.
• Fixed fees. You can add the SIPP for £10 extra per month.

How do I decide what to invest in with interactive investor?

interactive investor offers several options for building your portfolio, depending on how much help you want in choosing what to invest in and your risk appetite.

• Quick-start funds. interactive investor has created 3 ready-made funds to get you started. The funds are categorised by risk appetite, allowing you to choose one that suits you.
• ii Super 60. This is a wide range of active and passive funds, investment trusts and ETFs. These have a good track record and cover a range of regions. You can choose between risk appetites and if you’re not sure what to go with, there is a huge amount of information on the different options available on the website.
• Trading tips and ideas. interactive investor regularly puts together inspiration, tips and ideas in the form of videos and articles to help you make investment decisions.

Is interactive investor safe?

interactive investor is a secure company that has been managing investments since 1995. The company is regulated by the Financial Conduct Authority (FCA). Your money is covered by the Financial Services Compensation Scheme up to the value of £85,000 if interactive investor were to go bust. This does not cover your money in the event that your investments go down in value.

What can I do with the interactive investor app?

The mobile app allows you to trade, get quotes and manage your investments on the go. It uses Face and Touch ID for security.
Features of the iOS and Android apps include:

• Trading. You can access all the investment options that are accessible on the web app.
• Orders. You can see the status of all of your orders and can close or cancel orders.
• Funding. Allows you to see summaries of your accounts and add more funds.
• Quick quotes. Obtain stock quotes, view price charts and save stocks for later.
• Newsfeed, watchlist and market overview. Helps you stay up to date with the news, have a list of stocks to keep an eye on and shows you the latest market developments.
• Security. It uses Face and Touch ID for a quick log-in.

How good is interactive investor?

In terms of the options available and the opportunity to have full control over your investments, interactive investor is a good platform. If you’re new to investing then it could be a little overwhelming, but once you’ve spent some time reading the articles, you’re likely to find it easier to understand. The flat fees make it easier to work out how much your investments will cost, and also make it cheaper if you have a lot of money to invest.

Pros and cons of interactive investor

Pros

• Takes flat fees instead of a percentage of your investments (but the fees can outweigh your profits if you only have a small amount to invest).
• Gives a lot of detail and options when investing which is good for experienced investors.
• Great deal of information and inspiration on trading to help you make decisions.

Cons

• Quite a lot of fees for services, such as share certificates and postage.
• Overwhelming number of options if you’re new to investing.
• Fees might outweigh profits if you only have a small amount to invest.

interactive investor customer reviews

Finder surveyed some of interactive investor’s customers in December 2020. They found that it was competitively priced, reliable and easy to use.

Some customers mentioned that its fees are quite high, especially compared to other share dealing providers. They noted that it wouldn’t be as expensive with higher investments.

Our verdict

interactive investor is a really comprehensive platform for investing. The term “interactive” is key here, as you’ll need to keep an eye on your investments and know when to make adjustments. It offers plenty of useful information to give you more insight into what you are doing. On its website, interactive investor claims to be suitable even if you’re a beginner, but we reckon it’s more suited to the experienced investor.

If you have a small amount to invest, the fees might outweigh the profit you make, so it’s worth taking a look at alternative platforms.

Get started by visiting interactive investor and opening an account. Still not sure? Compare other share trading platforms with our comparison table.

Frequently asked questions

• Does interactive investor offer investment advice?

  No, interactive investor is not a financial advice service.

• Do I have to pay tax on my investment profits?

  You may need to pay tax on any gains you make from buying and selling shares. This depends on your personal tax rate. If you haven’t used your allowance yet, you can invest up to £20,000 per year in the investment ISA, which will not be subject to tax. interactive investor’s pension has tax benefits which also depend on your personal tax rate.

• Is there an interactive investor app?

  Yes. The interactive investor app is available on iOS and Android.

• How do I contact interactive investor?

  If you’re an interactive investor customer, you can use the secure message function. Just go to your account and select “secure messages”.
  Email: interactivehelp@ii.co.uk
  Telephone from the UK: 0345 607 6001
  Phoning from overseas: +44 113 346 2309

• How do I top up my account?

  You can top up your account by debit card, bank transfer, internal transfer or by cheque.

• What happens if interactive investor goes bust?

  Up to £85,000 of your investments are covered by the Financial Services Compensation Scheme.

• Who owns interactive investor?

  interactive investor is majority owned by J.C. Flowers & Co, a private equity firm.

• Where are the interactive investor headquarters?

  interactive investor is based in Manchester, with offices in London, Dundee and Leeds.