Choosing the right investment platform is one of the most important decisions you will make as an investor. The platform you choose determines which investments you can access, how much you pay in fees, and what tax wrappers are available. This guide compares the main UK platforms, explains the different account types, and helps you pick the right option for your goals.
Platform Types
UK investment platforms generally fall into three categories:
- DIY platforms — you choose your own investments from a wide range of funds, ETFs, and shares. You pay a platform fee but make your own decisions.
- Robo-advisers — an algorithm builds and manages a portfolio for you based on your risk tolerance and goals. Higher fees but hands-off.
- Managed platforms — a human financial adviser or portfolio manager makes decisions on your behalf. Higher fees still, but personalised.
Most investors are best served by a DIY platform with low-cost index funds. Robo-advisers suit people who want convenience without learning about investing. Managed platforms make sense only if your portfolio is complex or you have specific needs.
Best DIY Platforms
Vanguard Investor
Vanguard operates its own UK platform and is one of the cheapest available. It holds only Vanguard funds, which keeps things simple.
- Platform fee: 0.15% per year (capped at £375)
- Fund range: All Vanguard funds, including the popular FTSE Global All-Cap Index Fund (0.23% ongoing charge)
- Account types: Stocks and Shares ISA, SIPP, General Investment Account
- Best for: Cost-conscious investors who are happy with Vanguard funds
The platform fee cap means that on a portfolio of £250,000 or more, you pay a maximum of £375 per year. This makes Vanguard exceptionally good value for larger portfolios invested in their own funds.
Hargreaves Lansdown
Hargreaves Lansdown is the UK’s largest investment platform by assets under management. It offers a wide range of investments and a polished user experience.
- Platform fee: 0.45% per year for funds (capped at £3 per month for shares)
- Fund range: Over 3,000 funds, ETFs, investment trusts, and individual shares
- Account types: Stocks and Shares ISA, SIPP, General Investment Account, Junior ISA, Junior SIPP
- Best for: Investors who want the widest choice and are willing to pay a premium
The higher platform fee adds up over time. On a £100,000 portfolio, you pay £450 per year in platform fees alone — significantly more than Vanguard or AJ Bell.
AJ Bell
AJ Bell balances a wide investment range with competitive fees.
- Platform fee: 0.25% per year for funds, £3.50 per trade for shares
- Fund range: Over 2,000 funds, ETFs, investment trusts, and individual shares
- Account types: Stocks and Shares ISA, SIPP, General Investment Account, Junior ISA, Junior SIPP
- Best for: Investors who want a broad range of investments at a reasonable cost
AJ Bell is a strong middle ground. The platform fee is roughly half that of Hargreaves Lansdown, and the investment range is extensive.
Interactive Investor
Interactive Investor charges a flat monthly fee rather than a percentage of your portfolio. This makes it increasingly cost-effective as your portfolio grows.
- Platform fee: £11.99 per month for the SIPP plan (£143.88 per year)
- Fund range: Over 2,000 funds, ETFs, investment trusts, and individual shares
- Account types: Stocks and Shares ISA, SIPP, General Investment Account, Junior ISA, Junior SIPP
- Best for: Investors with larger portfolios (over £50,000)
A flat fee means the effective percentage cost falls as your portfolio grows. On a £50,000 portfolio, £143.88 per year works out at 0.29%. On a £200,000 portfolio, it drops to 0.07%.
Best Robo-Advisers
Robo-advisers build a diversified portfolio for you based on a short questionnaire about your risk tolerance and goals. They handle rebalancing and reinvestment automatically.
Nutmeg
- Management fee: 0.45% per year
- Fund range: Proprietary portfolios using low-cost ETFs
- Minimum investment: £500
- Account types: Stocks and Shares ISA, SIPP, General Investment Account, Junior ISA
Wealthify
- Management fee: 0.45% per year
- Fund range: Proprietary portfolios using ETFs
- Minimum investment: £1
- Account types: Stocks and Shares ISA, SIPP, General Investment Account
Moneyfarm
- Management fee: 0.45% per year (reduces with larger balances)
- Fund range: Proprietary portfolios using ETFs
- Minimum investment: £500
- Account types: Stocks and Shares ISA, SIPP, General Investment Account
All three robo-advisers charge similar fees, and all use low-cost ETFs within their portfolios. The total annual cost including fund charges is typically between 0.55% and 0.70%, depending on your risk level and portfolio.
Fees Comparison
The total cost of investing is more than just the platform fee. You need to consider:
- Platform fee — the charge for using the platform (percentage or flat fee)
- Fund ongoing charge — the annual fee charged by the fund itself (OCF)
- Trading fee — per-trade charges for buying and selling shares or ETFs
Total Cost Comparison on a £50,000 Portfolio
| Platform | Platform fee | Fund OCF (typical) | Total annual cost |
|---|---|---|---|
| Vanguard | £75 (0.15%) | £115 (0.23%) | £190 (0.38%) |
| AJ Bell | £125 (0.25%) | £115 (0.23%) | £240 (0.48%) |
| Interactive Investor | £143.88 (flat) | £115 (0.23%) | £259 (0.52%) |
| Hargreaves Lansdown | £225 (0.45%) | £115 (0.23%) | £340 (0.68%) |
| Nutmeg (robo) | £225 (0.45%) | £75 (0.15%) | £300 (0.60%) |
Fees compound over time. Even small differences in annual charges can cost you thousands over a 20 or 30-year investment horizon.
Investment Options
Most UK platforms give you access to the following investment types:
- Funds — pooled investments managed by a fund manager. Index funds track a market passively. Active funds try to beat the market.
- ETFs — exchange-traded funds that trade like shares. Most ETFs are passively managed and track an index.
- Investment trusts — closed-ended funds listed on the stock exchange. They can trade at a premium or discount to their net asset value.
- Individual stocks and shares — buy shares directly in listed companies. Higher risk but higher potential reward.
- Bonds — government or corporate debt. Lower risk and lower returns than equities.
For most investors, a combination of low-cost global index funds (either as funds or ETFs) provides the best balance of diversification, cost, and long-term returns.
Stocks and Shares ISA
A Stocks and Shares ISA lets you invest up to £20,000 per tax year with no UK capital gains tax, no income tax, and no dividend tax on returns. This is the most powerful tax wrapper available to UK investors.
Any growth, interest, or dividends earned inside the ISA are completely tax-free. You can hold funds, ETFs, investment trusts, and individual shares within a Stocks and Shares ISA.
The £20,000 annual allowance covers all ISA types combined — if you put £15,000 in a Stocks and Shares ISA, you have £5,000 remaining for other ISA types that tax year.
SIPP (Self-Invested Personal Pension)
A SIPP is a pension account that gives you tax relief on contributions and lets you choose your own investments. It is the pension equivalent of a Stocks and Shares ISA, but with additional tax benefits.
- Tax relief: Every £100 you contribute costs you £80 after basic rate tax relief, or £60 after higher rate relief
- Annual allowance: £60,000 per year (or your total earnings if lower)
- 25% tax-free: When you reach retirement age, you can take 25% of your pension pot tax-free. The remaining 75% is taxed as income.
- Access age: Currently 55, rising to 57 from April 2028
A SIPP is typically more tax-efficient than an ISA for higher-rate taxpayers, because the tax relief on contributions outweighs the tax on withdrawal for most people.
General Investment Account (GIA)
A General Investment Account has no tax advantages. You pay capital gains tax on profits above the annual CGT exempt amount (£3,000 for 2026/27) and income tax on dividends above the dividend allowance (£500 for 2026/27).
A GIA is useful as an overflow account once you have maxed out your ISA and pension allowances. Some platforms offer features like bed-and-breakfasting or dividend reinvestment to help manage your tax position.
Worked Example: 30-Year Investment Horizon
A 30-year-old invests £200 per month in the Vanguard FTSE Global All-Cap Index Fund (0.23% ongoing charge) for 30 years.
Via Vanguard Platform (0.15% platform fee)
- Total fees: 0.38% per year (0.23% fund + 0.15% platform)
- Monthly contribution: £200
- After 30 years at 7% average annual return (net of fees): approximately £190,000
- Total fees paid: approximately £12,500
Via Hargreaves Lansdown (0.45% platform fee)
- Total fees: 0.68% per year (0.23% fund + 0.45% platform)
- Monthly contribution: £200
- After 30 years at 7% average annual return (net of fees): approximately £185,000
- Total fees paid: approximately £17,000
The difference is approximately £5,000 over 30 years — from the platform fee alone. This illustrates why keeping costs low matters enormously over long time horizons.
Tips for Choosing a Platform
- Compare total fees, not just platform fees — a platform with a low fee but expensive fund options may cost more overall.
- Use your ISA allowance first — the tax-free benefits of a Stocks and Shares ISA make it the most efficient place to start.
- Keep costs low — fees compound just like returns. Over 30 years, a 0.5% difference in annual fees can cost you tens of thousands of pounds.
- Check the fund range — make sure the platform offers the funds you want. Vanguard’s platform only holds Vanguard funds, which may be limiting if you want to diversify.
- Consider flat fees for large portfolios — if your portfolio exceeds £50,000 to £100,000, a flat-fee platform like Interactive Investor becomes cheaper than percentage-fee platforms.
- Avoid unnecessary trading fees — if you invest monthly, per-trade charges add up quickly. Some platforms offer free regular investing on funds.