Interactive Investor ETF portfolio experience

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• Reading duration: 4 minutes

Interactive Investor (also known as ii) is a trusted execution-only investment platform that’s been operating since 1995. It’s a well-regarded brand in the UK, so let's put its USPs, fees, and customer service under the justETF microscope.

Interactive Investor key features

• Flat-rate fee plans are good value for large account holders
• Overwhelmingly positive feedback for its customer service
• Excellent choice of over 1,000 ETFs listed on the London Stock Exchange
• Easy-to-use website and app
• Low minimum ETF purchase amount of £25
• Multi-currency accounts save on FX costs
• Bonus free trade per month, two free friends and family accounts, and as many free Junior ISAs as you have children - for accounts worth over £50,000

Interactive Investor platform fees

Interactive Investor is best known for its “flat fee” deals. Instead of charging you a percentage fee based on the size of your assets, ii offers fixed-rate monthly plans to suit your needs. In short, they take the Netflix approach to subscriptions, though you can’t watch Stranger Things. *GIA = General Investment Account, sometimes known as a trading account.

• Bundle deal for all three account types = £9.99 a month (up to £75,000 in assets) or £21.99 a month for higher account values
• No entry or exit fees
• £19.99 a month premium plan offers four free monthly trades and 5 free friends and family members

Interactive Investor’s flat-rate plans favour investors with large accounts but are expensive for anyone starting from scratch. For example, if you invest £1,000 into an ISA with ii then they’ll charge you £60 a year. Alternatively, you’d pay £2.50 a year to a percentage fee broker who charges 0.25 % of the value of your account. Now let’s consider the numbers once your ISA has grown much larger. This time you’ve got £40,000 stashed away. Interactive Investor still charges £60 a year in platform fees for that. But the percentage fee broker takes a much bigger bite from larger accounts. £40,000 x 0.25 % = £100 in platform fees. Now the tables are turned, as the percentage fee broker charges 67 % more than Interactive Investor in this scenario. On that basis, you can see that Interactive Investor becomes good value once you’ve amassed a more substantial sum across your accounts. The tipping point is around the £25,000 mark for ISAs, though factor in your trading costs, too.

Interactive Investor trading fees for ETFs

• Interactive Investor charges a reasonable commission on ETF trades of £3.99 per trade.
• The minimum purchase amount is a low £25.
• FX fees are 1.5 % for transactions worth £25,000 or less. Lower charges are available for larger trades or you can make contributions using foreign currency (except in ISAs).
• Dividend reinvestment is 99p for distributing ETFs. You can avoid this fee entirely by using accumulating or capitalising ETFs.
• You can use a range of orders including limit, stop-loss and fill or kill.

Interactive Investor offers free purchases via it’s regular investing service

You can avoid dealing fees by drip-feeding money into your ETFs. Interactive Investor’s regular investing service works just like an ETF savings plan. The cash goes in by direct debit and Interactive Investor places your trades on a fixed date every month. The trades are free and you can channel money into as many as 25 ETFs a month. Naturally, you can change or stop your investments at any time.

Interactive Investor investment and deposit protection

ii is authorised and regulated by the Financial Conduct Authority, [FRN 141282]. That means your investments should be covered up to £85,000 under the terms of the Financial Services Compensation Scheme (FSCS).

Interactive Investor customer support and services

Happily, Interactive Investor are easy to reach by telephone and typically have good response times. You can also message them or talk on Live Chat. The customer support team is available 7.45am to 5.30pm, Monday to Friday. They score a reassuring 4.7 out of 5 according to the customer reviews on Trustpilot. Interactive Investor’s website is straightforward and easy to use regardless of your experience level. The app is clear and fuss-free, too. Unusually for a UK broker, ii have a nicely integrated multi-currency account service for international trading. You can hold US dollars, Euros, Australian dollars and five other major currencies in your SIPP or trading accounts. (ISAs only admit pounds.)

Interactive Investor review summary: a trusted brand, especially good for family accounts

While cheaper platforms exist in the UK, few have been in business as long or are owned by a large global investment firm (Abrdn in this case). Interactive Investor is the epitome of a solid, sensible investment platform that works well for customers with significant sums invested, even if your engagement level is low. Just switch on their regular investing option to automate your contributions and get on with your life. Moreover, ii make it easy to add extra accounts for free, including Junior ISAs, as and when you’re ready to invest on behalf of your expanding family unit. Granted, they don’t dabble in crypto or other exotic instruments. But they do offer fantastic coverage of mainstream investments, including ETFs. Check out ii if you’re interested in:

• Reliability
• Good customer service
• An accessible experience
• Flat-rate fees