PF
Pennywise Finance Editorial
UK personal finance team — researchers and editors covering savings, ISAs, investing, mortgages and retirement.
Fact-checked
Reviewed June 2026

Updated for the 2026/27 UK tax year. ISA allowance: £20,000.

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Affiliate disclosure: Some links on this page are affiliate links. Pennywise Finance may earn a commission if you open an account, at no extra cost to you. Our rankings are based on user benefit, not commission rate. Read our full disclosure and review methodology.

Quick verdict

For new investors and lower balances: Trading 212 — commission-free, fractional shares, £1 minimum, no platform fee.

For ETF-focused investing: InvestEngine — 0% DIY fee, broad ETF range, optional managed portfolios.

For broad DIY investing across funds, shares and ITs: AJ Bell — 0.25% custody fee, wide product range, capped fees on shares.

For active investors who value research and service: Hargreaves Lansdown — premium platform, gold-standard research, the most extensive UK retail investing toolkit.

PlatformStylePlatform feeInvestment rangeBest for
Trading 212App-first, DIY0%5,000+ stocks and ETFs, fractional sharesNew investors; commission-free trading
InvestEngineETF specialist0% (DIY) / 0.25% (managed)700+ ETFs onlyETF-focused investors; managed portfolios
AJ BellFull DIY platform0.25% (capped on shares)Funds, ETFs, ITs, UK and US shares, bondsDIY investors with broad ambitions
Hargreaves LansdownPremium DIY platform0.45% (tiered)3,000+ funds, ETFs, ITs, UK and global sharesActive investors wanting deep research

Verify current fees, products, and minimums on each provider's site. Fees change.

How we ranked these

Four criteria, weighted by long-term outcome impact: total cost of holding (platform + dealing + product fees compound dramatically over 20+ years), investment range (more options = better portfolio construction), platform experience and quality (matters when you've held an account for a decade), and educational resources for newer investors. See our review methodology.


Trading 212

Trading 212 is the dominant app-first commission-free broker in the UK and across Europe. The Stocks and Shares ISA carries a 0% platform fee, commission-free trading on 5,000+ stocks and ETFs, fractional shares from as little as £1, and an interest-paying cash balance for uninvested funds.

The case for Trading 212

For new investors building a portfolio with small monthly contributions, Trading 212 is hard to beat on cost. The 0% platform fee means more of your contributions actually invest. Fractional shares let you buy a portion of expensive shares (Berkshire Hathaway A, Booking, Microsoft) that would otherwise need hundreds of pounds per single share.

The "Pies" feature — Trading 212's term for custom portfolios — automates allocation across multiple shares with a single recurring contribution. This is genuinely useful for systematic monthly investing.

Pros

Cons

Open with Trading 212 → Commission-free ISA, 5,000+ stocks and ETFs, £1 minimum

InvestEngine

InvestEngine is the UK's ETF specialist. Their proposition is simple: 700+ ETFs, no commissions, 0% platform fee on the DIY service (you pay only the underlying ETF management fees, which are minimal on global trackers). For investors who want low-cost passive exposure across global markets, this structure is genuinely difficult to beat.

The case for InvestEngine

An ETF-only platform with no platform fee is unusual. The total cost of investing through InvestEngine on a typical global tracker portfolio is roughly 0.15–0.30% per year — paid to the ETF provider, not the platform. Compared to traditional fund platforms charging 0.25–0.45% custody plus fund fees of 0.5%+, the long-term cost difference compounds materially.

For investors who want managed exposure without picking ETFs, InvestEngine offers managed portfolios at 0.25% management fee. Cheaper than Nutmeg or Moneyfarm, with the trade-off of less brand recognition.

Pros

Cons

Open with InvestEngine → ETF specialist ISA, 0% DIY platform fee, £100 minimum

AJ Bell

AJ Bell is the standard UK answer for DIY investors who want a broad investment universe — funds, ETFs, investment trusts, individual shares (UK and US), bonds — in one platform with a competitive fee structure. The Stocks and Shares ISA carries a 0.25% custody fee, capped on shares (£3.50/month).

The case for AJ Bell

Range and reliability. AJ Bell's investment universe is broad enough to construct virtually any portfolio strategy a UK retail investor would want: passive global trackers, dividend portfolios, individual share picking, bond ladders, ITs for specialist exposure. The capped fee on shares (£3.50/month) makes it competitive for investors who hold a meaningful share allocation.

The platform has been around since 1995, is FTSE-listed, and is one of the most-used platforms for UK retail investors. The research tools, market commentary, and customer service are all genuinely useful — and matter when you're holding the same wrapper for 20+ years.

Pros

Cons

Open with AJ Bell → Full DIY platform, 0.25% custody, £500 or £25/month

Hargreaves Lansdown

Hargreaves Lansdown is the premium UK retail investment platform. The Stocks and Shares ISA carries a higher fee than the competition (0.45% custody on funds, with tiered reductions above £250k), but the proposition wraps in the most extensive research, customer service, and educational content available in UK retail investing.

The case for Hargreaves Lansdown

HL's research arm is the gold standard for UK retail investors — analyst notes, fund commentary, the Wealth Shortlist of recommended funds. For active investors who use that research, HL pays for itself many times over.

The platform is also a one-stop shop: ISA, SIPP, Lifetime ISA, Junior ISA, savings account, share dealing — all under one login with one customer relationship. For higher-balance investors consolidating accounts, HL is the most natural choice.

Pros

Cons

Open with Hargreaves Lansdown → Premium platform, deep research, £100 lump sum or £25/month

Winner

For new and small-balance investors building a portfolio: Trading 212. 0% platform fee, commission-free trading, fractional shares — the cost structure is hard to beat for the first £20,000 of investing.

For ETF-focused passive investors: InvestEngine. 0% platform fee, broad ETF range, optional managed portfolios at 0.25%.

For DIY investors who want broad investment choice across asset classes: AJ Bell. 0.25% custody, capped on shares, wide product range, long track record.

For active investors valuing research and service: Hargreaves Lansdown. Premium fee, premium platform.

Whichever route you choose, run our ISA Calculator to model long-term growth, and read Stocks & Shares ISA vs Cash ISA if you're still weighing the trade-off. New to investing? Start with Stocks and Shares ISA for Beginners.


Frequently asked questions

How much can I put into a Stocks and Shares ISA?

£20,000 per tax year, which is the total annual ISA allowance across Cash, Stocks and Shares, Lifetime, and Innovative Finance ISAs combined. You can spread that £20,000 across multiple ISA types — for example £4,000 in a LISA and £16,000 in a Stocks and Shares ISA.

Is a Stocks and Shares ISA actually tax-free?

Yes. Inside the wrapper, all capital gains, dividends and interest are free of UK tax. You don't declare growth on your tax return. On withdrawal, the money is yours — no income tax, no capital gains tax.

Can I lose money in a Stocks and Shares ISA?

Yes. Investment values rise and fall with markets. Over 5+ year horizons, broad equity markets have historically delivered positive real returns, but past performance is not a guarantee. Short-term losses are normal.

Can I have multiple Stocks and Shares ISAs?

From 6 April 2024 you can pay into more than one ISA of the same type in a single tax year, provided you stay within the £20,000 total allowance. This is a recent change — earlier rules limited you to one provider per type per tax year.

What happens if I exceed the £20,000 allowance?

HMRC contacts your providers, the excess is removed from the ISA wrapper, and any income or growth on the excess becomes taxable. Most providers monitor your contributions to prevent this happening accidentally.

Can I transfer between providers?

Yes. ISA transfers preserve the tax-free wrapper. Always use the receiving provider's transfer-in process — withdrawing and re-depositing breaks the ISA status and counts as a new contribution against your allowance.

What's the difference between a Stocks ISA and a SIPP?

Tax treatment and access. A Stocks and Shares ISA is funded with post-tax money and you can withdraw at any age tax-free. A SIPP is funded with pre-tax money (basic-rate tax relief added automatically) and can only be accessed from age 55 (rising to 57 in 2028). For long-horizon retirement saving, both have a place — see SIPP vs workplace pension.

Are Stocks and Shares ISAs protected by the FSCS?

Yes, up to £85,000 per platform — covering the platform's failure (cash held with the platform, the legal arrangement of your investments). It does not cover investment losses from market movements.

Related Stocks & Shares ISA guides

This is general information, not financial advice. Pennywise Finance is not authorised by the Financial Conduct Authority. Capital is at risk when investing — your investments can fall as well as rise, and you may get back less than you invest. Past performance is not a reliable indicator of future returns. For decisions involving significant sums, consult an FCA-authorised adviser or the free MoneyHelper service.