Interactive Investor provides a Stocks & Shares ISA, allowing investors to use their annual £20,000 tax-free allowance to grow investments without tax liability.
What Is the Interactive Investor Stocks & Shares ISA?
This ISA is a tax-free investment account. It lets users invest in a range of assets, including funds and shares.
Unlike some providers, it does not charge a percentage of investments. Instead, it applies a flat monthly fee of at least £5.99.
Investment Options
Interactive Investor offers two main paths: managed portfolios and DIY investing.
Managed Portfolios
These are ideal for beginners. Investment experts design portfolios based on your risk tolerance and investment goals.
Users complete a questionnaire to match with one of ten portfolios. Five are labeled ‘sustainable’ and focus on long-term, environmentally responsible investing.
DIY Investing
Users can invest directly in funds, exchange-traded funds (ETFs), UK and international shares, and bonds.
DIY investing requires more knowledge. It involves selecting individual assets and managing them personally.
Fees and Costs
Interactive Investor charges a flat monthly fee of at least £5.99, regardless of investment size.
For small investments, this fee can be high. For example, investing £1,000 annually costs a significant amount — more than providers with lower percentage fees.
When investing over £50,000, the cost becomes competitive. At that level, the fee is consistent with other providers, offering a lower cost than some with 0.15% minimum fees.
- Trading UK or US shares: a commission is charged per trade
- Trading international shares: a commission is charged per trade
- Dividend reinvestment: a cost is applied per transaction
- Regular monthly investing: available at no cost
Features for Beginners
Interactive Investor includes a free research account — a demo environment where users can test portfolio performance without risking real money.
Beginners can start with managed portfolios or use the demo account to explore options before committing.
Pros and Cons
- Pros: Suitable for both beginners and experts. Offers managed and DIY options. Lowest fees for large investments over £50,000.
- Cons: High fees for small investments. Website navigation may be difficult for new users.
Customer Feedback
On Smart Money People, Interactive Investor has a 4.42-star rating from customers.
Positive reviews highlight the range of products and customer service. Some users note the website is hard to navigate.
Is It Worth It?
Interactive Investor is a comprehensive provider with strong options for both novice and experienced investors.
It is especially cost-effective for larger investments. However, it may not be the most intuitive choice for beginners.
For those seeking simpler tools, robo-advisors may be better suited.
Users can access the platform via mobile app or web browser. Performance charts and detailed reports are available for review.
For more comparisons, see the Interactive Investor review on Be Clever With Your Cash.
Explore other ISAs with our best cash ISAs guide.
Sources & further reading
Featured image: The Stocks and Shares shop, Leeds.jpg by Mtaylor848, CC BY-SA 3.0, via Wikimedia Commons. Image source · License
