Fees
What will a platform actually cost you?
UK platforms charge in three shapes. Move the dial and see what a year costs under each — no names, no league tables, no one paying me to point at them.
Charging nothing isn't the same as costing nothing. How “free” platforms actually make their money covers the part you can't see on a price list.
How much would you invest?
£10,000How often would you buy?
Percentage fee
£53a year
Illustration, not a quote
You pay a slice of your pot each year (typically 0.25%–0.45%). Cheap when your pot is small, painful when it grows.
0.35% of your pot — £35 · 12 buys at £1.50 — £18 · Kindest while you're starting out.
Flat monthly fee
£108a year
Illustration, not a quote
The same fee whether you have £5,000 or £500,000 (typically £5–£13 a month). Expensive for small pots, a bargain for big ones.
£9 a month — £108 · Comes into its own once the pot is large.
Commission-free app
£0a year
Illustration, not a quote
£0 platform fee. They earn elsewhere instead — see the catch below.
Headline platform fee — £0 · Nothing on the sticker. Read how they actually make money.
At £10,000, a percentage fee is the gentler shape — roughly £53 a year against £108 for a flat fee. The flat fee only starts winning somewhere around £30,857.
Every figure here is an illustration using typical middle-of-the-road charges — not a quote, not a live price, and not a nudge towards anyone in particular. We aren't a broker and we don't take a penny from one. Always read the platform's own fee page. — Penny
The catch with “free”
Free isn't free — it's paid for somewhere else
The buy/sell gap can be a little wider, the currency charge a little heavier, or the cash you leave sitting there earns interest for them, not you. None of it appears on a bill.
Currency conversion
Buying anything priced in dollars usually means a conversion charge on every buy. On a small regular purchase it can dwarf the dealing fee.
Exit and transfer charges
Some platforms charge to move your holdings elsewhere, sometimes per holding. Worth checking before you go in, not after.
The fee is on your pot, not your profit
A percentage fee is charged in the good years and the bad ones alike. It's the one number you get to control.
Lesson
Choosing where to buy
I can't tell you where to open an account — that's genuinely your call, and anyone who tells you otherwise is usually being paid to. What I can do is show you what to look at, in the order I'd look at it.
- Step 1
Start with the wrapper, not the app
For most people the first account is a Stocks & Shares ISA, so any growth is out of the taxman's way. Check the platform offers the wrapper you want before anything else.
- Step 2
Match the fee shape to your pot
Small pot, regular buying: percentage fees usually cost less. Large pot: a flat monthly fee often costs far less. Same money, different shape.
- Step 3
Count the dealing fees against your habit
If you plan to buy £50 a month, a £10 dealing fee is a fifth of your money gone before you start. Look for free regular investing, or buy less often.
- Step 4
Check your money is protected
UK-regulated platforms are covered by the FSCS up to £85,000 per firm if the firm itself fails — the investment limit, which is lower than the £120,000 for savings in a bank. That protects against the firm collapsing — never against your investments falling.
- Step 5
Read the boring bits
Transfer-out charges, currency conversion, interest on your cash, and what happens if you want to leave. This is where the real cost usually hides.
- Step 6
Then, and only then, the app
A calm app you understand beats a clever one you don't. If you can find the fee page in under a minute, that's a decent sign.
One last thing: don't spend three months choosing. The difference between two sensible platforms is small next to the difference between starting and not.