Best Stocks and Shares ISAs in the UK: Top Platforms for Tax-Free Investing
- Alex Mason - Investing & Financial Growth Writer
- Apr 14
- 5 min read
A Stocks and Shares ISA is one of the most tax-efficient ways to grow your wealth in the UK. With tax-free returns on dividends, interest, and capital gains, it's a popular choice for long-term investors.
But with so many platforms offering Stocks and Shares ISAs — each with different fees, fund access, and features — choosing the right one can feel overwhelming.
In this guide, we break down the best Stocks and Shares ISA providers in the UK, comparing what they offer, how much they charge, and which one might suit your investment style and goals.
What Is a Stocks and Shares ISA?
A Stocks and Shares ISA allows you to invest in:
Funds (e.g. index funds, mutual funds)
Individual shares
Bonds
Investment trusts
ETFs (Exchange-Traded Funds)
All returns are completely tax-free, meaning:
No income tax on dividends
No capital gains tax on profits
No need to declare investments on your tax return
You can invest up to £20,000 per tax year across all ISAs you hold.
Read our guide on: What is an ISA and How Does It Work?
What to Look for in a Stocks and Shares ISA Platform
Choosing the right platform depends on your needs. Consider:
Fees – platform charges, fund charges, and trading costs
Investment options – range of shares, funds, or portfolios
Ease of use – web interface, mobile apps, and support
Minimum investment – lump sum or monthly contribution
Tools and research – educational content, calculators, and analysis tools
Best Stocks and Shares ISA Providers in the UK
1. Vanguard Investor
Platform fee: 0.15%
Fund choice: Vanguard-only funds and ETFs
Minimum investment: £500 lump sum or £100/month
Mobile app: Yes
FSCS protection: Yes
Why it stands out:
Vanguard offers one of the lowest-cost platforms in the UK and is ideal for passive investors who want global diversification without selecting individual shares.
Best for:
Long-term, hands-off investors
People focused on index funds and simplicity
2. AJ Bell Youinvest
Platform fee: 0.25% for funds, tiered pricing for shares
Investment range: Thousands of funds, shares, ETFs
Minimum investment: £25/month or £500 lump sum
Research tools: Yes
Mobile app: Yes
Why it stands out:
AJ Bell combines competitive fees with strong functionality and wide choice, making it suitable for both beginners and experienced investors.
Best for:
DIY investors
Those wanting a broad range of investments
3. Fidelity Personal Investing
Platform fee: 0.35%
Investment options: Over 3,000 funds
Minimum investment: £25/month
Tools & content: Strong educational tools and fund shortlists
Why it stands out:
Fidelity’s intuitive platform and wide fund range make it a solid option for those seeking professionally managed portfolios or fund-based investing.
Best for:
Intermediate investors
Those who prefer managed fund options
4. Hargreaves Lansdown
Platform fee: 0.45% (tiered for large portfolios)
Investment access: Full UK & global shares, funds, ETFs
Mobile & desktop tools: Advanced charting and investment insights
Customer service: Highly rated
Why it stands out:
Despite higher fees, Hargreaves Lansdown offers a premium platform with exceptional customer support and research.
Best for:
Active traders
Investors who value support and platform depth
5. Interactive Investor
Fee model: Flat monthly fee (£4.99–£12.99 depending on plan)
Trading fee: £3.99–£5.99 per trade
Investment options: Extensive range of shares, funds, trusts
Key feature: Flat fee better for large portfolios
Why it stands out:
Great for investors with larger pots, where a flat fee becomes more cost-effective than percentage-based platforms.
Best for:
High-value portfolios
Frequent share traders
Read our guide on: Best ISA Providers in the UK: Compare Cash & Stocks and Shares ISAs
How to Choose the Right Stocks and Shares ISA for You
Ask yourself:
Do I prefer funds or individual shares?
Am I investing a small amount or a large portfolio?
Do I need ongoing support and educational tools?
How often will I trade or adjust my portfolio?
Is a mobile app essential for how I manage my finances?
Your answers will help match you to a provider with the right pricing and features.
Fees Matter: A 1% Difference Can Cost Thousands
One of the most overlooked aspects of choosing a Stocks and Shares ISA is how platform and fund fees impact your long-term returns.
For example:
A 1% fee on a £20,000 portfolio costs £200 per year
Over 20 years, that could eat into thousands of pounds in returns
Choosing a low-cost provider is especially important for passive, long-term investors. That’s why providers like Vanguard and AJ Bell consistently top recommendation lists.
Unique Insight: Consider Auto-Invest Portfolios for Simplicity
Some platforms, such as Nutmeg, Moneybox, or Fidelity, offer robo-advised portfolios — pre-built portfolios based on your risk profile.
These are ideal for:
New investors
Those who want to invest without selecting funds manually
People looking for a ‘set and forget’ solution
Although these services usually come with higher fees, they remove complexity and are FCA-regulated.
Read our guide on: Can You Have More Than One ISA? Rules You Need to Know
How to Open a Stocks and Shares ISA
Opening a Stocks and Shares ISA is typically done online in a few steps:
Choose a provider that suits your needs
Fill out an online form with your personal details and NI number
Set up a payment method (lump sum or direct debit)
Choose your investments (or select a pre-built portfolio)
Start investing — your ISA will grow tax-free
Most providers offer mobile apps for ongoing monitoring and fund switching.
Frequently Asked Questions (FAQs)
Can I lose money in a Stocks and Shares ISA?
Yes — unlike a Cash ISA, your investments can fall as well as rise. Returns are not guaranteed, and your capital is at risk.
How much can I invest in a Stocks and Shares ISA?
You can invest up to £20,000 per tax year across all ISAs (Cash, Stocks and Shares, Lifetime, etc.).
Can I transfer my ISA to a different provider?
Yes — and it’s often smart to do so. Always use the official ISA transfer process to retain tax-free status and avoid breaching your annual allowance.
Are Stocks and Shares ISAs safe?
Your money is not protected against investment losses, but the platform must be FCA-regulated and is usually covered by the FSCS up to £85,000 if the provider goes bust.
Check if your provider is authorised via the FCA register.
Do I need to declare ISA investments to HMRC?
No. All ISA returns are tax-free and do not need to be included on your tax return.
Final Thoughts
A Stocks and Shares ISA is one of the most effective ways to grow wealth in the UK while shielding returns from tax. Whether you’re investing £25/month or managing a six-figure portfolio, the right ISA provider can significantly impact your long-term gains.
Take time to compare platforms based on your goals, risk appetite, and fee sensitivity. Don’t forget to review your choices annually — and transfer if necessary to keep your investments working hard.
You may be interested in: How to Transfer an ISA Without Losing Tax Benefits
You may be interested in: How to Maximise Your ISA Allowance Before the Tax Deadline
You may be interested in: Lifetime ISA vs Help to Buy ISA
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Please note: All content on SmartWithMoney.co.uk is for informational purposes only and does not constitute financial advice. Always seek guidance from a qualified financial adviser before making any financial decisions.
