Hey guys, it's Sasha If you're based in the UK investing in stocks through a stocks and shares, Isa is the best way to invest in the stock market without having to pay any capital gains tax or dividend tax on your investments. In this video, I Am going to share the best stocks and shares Isa platforms with you I Will tell you what the differences between all these platforms are, why some of these are good, why some of the other ones are bad. I will tell you what you can and what you cannot invest in on each platform. This bid is pretty important and I will tell you how much they all cost.

It is actually not easy to compare prices because they all charge you in a slightly different way. but I will explain how that is and I will do my best. but I will leave the links to all of these. Platforms In the description, most of these links are affiliate links because I do happen to have an affiliate link for pretty much every single platform.

Worth having an affiliate link for benefits of talking about Finance on YouTube If you use the links, I will get a small commission or a free share. Say thank you and it won't cost you anything. Well, other than investing fees, some of these platforms will give you a free share or a bonus for signing up. but be careful because that free share of bonus does not mean it's the best platform for you or you could end up paying a whole lot more in fees.

Now let's talk about the best stocks and shares ISO accounts. And first up, you need to think what you want to do within your stocks and shares. Isa What sort of thing do you want to invest in Because that really affects your decision? Investors usually split into either being a passive investor or an active investor. Passive investors don't buy individual stocks, You just go and buy the index.

Maybe the S P 500, Index maybe the World Index and just that's it. It doesn't really matter. Each and every single month you just go and buy it. And then there's active investors who want to pick their own stocks they want to buy Tesla They want to buy AMD AMC Whatever.

I Am personally an active investor, but the truth is and this is really important. The vast majority of active investors will lose to the stock market in the long run. So for most investors, especially new investors may be less experienced investors. maybe people don't have much time to study their Investments Investing in the index is going to be a much much better option.

So let's start there. If you want to invest in something like the S P 500, the total World Stock Market Index: There are three good platforms. Two of them are completely free. The first is Invest Engine.

Invest Engine is a relatively new platform where you can go and sign up for an Isa and invest in one of the 550 Plus ETFs completely for free. Well, you will have to pay whatever the management fees on those ETFs are, but there's no charge from Invest Engine. Remember you need the DIY option to pick your own ETFs not the managed version that does have fees. You can invest in the S P 500, You can invest in the Ftse, you can invest in one of the world indices, they're all in there and at the moment Invest Engine is running a promotion.

If you want to go and open an account and you go and do it and deposit at least to a hundred pounds, they will give you a 25 on bonus if you use my link in the description. So that's really neat. But the downside with Invest Engine is that you cannot buy individual stocks. So if you set up your Isa there, you can only buy ETFs in that account for the whole financial year.

Because remember, you can only set up one of these per Financial year and deposit into one of these per Financial year. But if you want the ETFs in the first place, Invest Engine is a great choice because it doesn't charge anything at all. The other platform that is completely free for investing in the index is trading 212. they have all the same ETFs pretty much maybe not quite as many I don't know, but all the main ones are there and there is no fee at all for the ISA if you buy ETS priced in pounds, you will not have to pay any fees at all because the only fee that training to want to do charge on their regular invest and on their Isa accounts is that 0.15 foreign exchange fee.

But if you deposit pounds, remember to do it via a bank transfer because that bit is free. Paying with card costs quite a lot of money. You can then invest in ETS priced in pounds for free on trading 212.. unlike Invest engine, you can buy individual stocks on trading 212 and there is a pretty big selection.

so if you're not sure if you maybe want to buy at least some, that may be something to consider. But if you buy stocks outside the UK you will have to pay that 0.15 for an exchange fee on every transaction. And if you want to open an account with trading 212, make sure you use my link in the description because then you'll get a free share worth up to 100 pounds while you're at it. There is one other really good stocks and shares ISO option for investing in Yes, but it's not free.

Although it is very cheap and it's Vanguard Vanguard does not have any fees on transactions, you just pay 0.15 of your portfolio as an annual management fee. So if you keep for example, 2 000 pounds in your Isa for a whole year, that will cost you three pounds in total. So it's not free, but it's really not at all expensive. The Restriction is that on Van Vanguard you can only buy Vanguard ETFs.

But Vanguard also happened to have some of the best and some of the cheapest ETFs out there. so that's not really a problem if that's the whole reason for why you're opening the account. But like Invest engine, you cannot buy individual stocks. One benefit is that Vanguard is one of the biggest fund managers in the world.

So you're paying this tiny fee to be with an established, huge international company. And that does have some benefits like knowing the company is probably more likely to still be there in 50 years time than maybe some of the new up Stars So you're less likely to have the hassle of having to move your portfolio and you know, deal with customer service and whatever. And we also saw in the last couple of years a lot of the new platforms that start out being free, then do a bait and switch and start charging customers fees. Out of the blue, sometimes really high fees.

and although I can't speak for Vanguard, a big established company is probably a bit less likely to go and screw their customers around frequently. So let's talk about active Investing. If you're wanting to buy individual stocks, there are a few different options to consider. None of them are free, so you will have to pay some fees.

but the fees, that you're going to have to pay can be really quite low. Now there are a lot of very expensive stocks and shares Isis out there. For active investors, A lot of the well-known ones like Hargreaves Lansdowne can charge you as much as 12 pounds per transaction, which is crazy expensive for any normal investor. If you're investing larger amounts every month, then Interactive Brokers is in my opinion, the best option out there.

This is my main investing platform that I personally use. Interactive Brokers have two sets of fees. you pay Foreign Exchange to convert the pounds you deposit into dollars and you pay transaction fees on buying and selling stocks. Now, these fees work really differently on the ISA product compared to the regular investing product.

so please don't go and look on their website because those fees don't apply in the same way and the fees are really complicated. That is in general a big downside of the platform, but while they are very complicated, they are also very cheap. which is a good thing. Now, the interactive brokers ISO charge us three pounds a month for the account and any Commission on transactions during the month is then offset against that fee.

So if you spend less than three pounds a month on fees, you will not actually have to pay them because you're just paying that three pounds a month. And the Wither nicer is going to be pretty difficult to spend more than three pounds a month in the fees because there are two fees to pay. The first is the transaction fee and you can see that each transaction costs 0.35 cents per share for U.S shares as an example. and the minimum is 35 cents per transaction.

So if you're buying less than 100 shares, then it's going to cost you 35 cents regardless. And for most U.S stocks, unless you're buying some kind of penny stocks, it will be 35 cents each time. For most people watching, remember to turn on that tiered pricing in your settings. And with the ISA, you also have to pay foreign exchange on every transaction.

and the foreign exchange for the ISA is really good value. It's just a zero point zero three percent, which is super cheap. This is incredibly cheap, so if you deposit 500 pounds a month, it will cost you 15 p in foreign exchange to convert it for those transactions. So let's say you deposit a 500 pound a month into your stocks and shares Isa and buy five different stocks a hundred pounds into each.

and let's say you're buying normal stocks A Google Tesla MD Whatever, Not, things that cost under five dollars. Each of those five transactions will cost you 35 cents because you're going to be buying less than 100 shares and then you'll spend 15p in total in foreign exchange. So the total fees at the current exchange rate will be about one pound Thirty Which is less than three pounds so you won't have to pay them. You just pay that three pound monthly fee and I am guessing most IC investors will never go over the three pound fee on a month basis.

and again, you have the benefit of Interactive Brokers being a very big established company with all the security, all the features and they have a lot of features. the customer service Etc that comes with it. but for those making smaller Investments Trading 212 might be the cheaper option. Trading number Two lets you buy U.S stocks with just that 0.15 foreign exchange fee.

So the foreign exchange fee for trading 212 is higher than Interactive Brokers, but you do not have to pay commission on the transactions. So for every hundred pounds that you transact on trading 21 to your pay 15p. And so for direct comparison, if your monthly transactions are less than 2 000 pounds a month, then trading 212 will be cheaper than that three pounds a month that you have to pay into active Brokers I Said and most people probably will not be transacting more than two thousand pounds a month. So because you're buying and selling and each time you have to pay that fee, if for example, you go and sell a thousand pounds worth of stock a month on average and then you go and buy a thousand pounds worth of stock.

that is the breaking point. above that Interactive Brokers is going to be cheaper. Below that, trading to one two is going to be cheaper if you're just looking at the price on those transactions alone as the measure. And remember, Interactive Brokers is really good for U.S stocks, but if you want to buy UK stocks or European stocks, it becomes quite a bit more expensive.

It used to be three pounds in transaction, but under this revised tiered pricing structure, it is now just one pound per order minimum. In trading 212, you can buy UK stocks for free, which is obviously a massive Advantage You still have to pay the stamp Duty Etc all of that tax stuff, but you have to pay that on every platform, so that's not really a difference. I have links for both trading 212 and Interactive Brokers in the description. Remember that Trading Tone 2 will give you a free share if you use that link to sign up and make a deposit.

But don't sign up for any of these platforms without thinking it through. Remember you can only open and deposit into one stocks and shares Isa In any One Financial Year From the 6th of April to the 5th of April The next year, you can only put your money into one of these ices. You can keep all of your old ones. You don't have to go and move your stuff out.

You can keep buying and selling stocks within those Isis You just can't deposit more money into them. And be careful with platforms that don't charge fees or charge very low fees. In the last couple of years, we've seen a lot of platforms change their fee structures. Trading 212 went from being completely free to charging fees.

Free Trade introduced very expensive monthly fees, which is by the way why they are not recommended in this video at all. Stake recently went from no commission to three dollars per transaction which is ridiculously expensive from zero to three dollars a transaction. so just take that into consideration. Some of these new platforms might be good value, but you might also get headache down the line having to move your portfolio if the fees change for whatever reason, but at the same time.

Also, remember that many of the big established Brokers like Interactive Investor that's not the same thing as Interactive Brokers Hargreaves lands down AJ Bell and some of the others will charge you eye watering a mouse and fees. So please make sure you go and look at those fees. Make sure you do your homework before signing up with one of them. The Brokers I mentioned in this video are either free or charge a few pennies Transaction: The fees are very low.

These other guys prey on people not knowing any better. They pray on people thinking they have to sign up with one of them and we'll charge you annual management fees. 0.45 with HL for example. Then they'll also charge you 12 pounds per transaction.

Some of them are lower, but they're all absurdly high in commission as daylight robbery for any normal ISO transaction. Imagine making a 100 or a 200 pound transaction and paying a 12 pound fee. That's absurd. And then you have to pay an extra one percent in foreign exchange because charging you 12 pound a transaction does not buy enough caviar for the office for Friday The UK government has recently reduced capital gains and dividend allowances, which means investing in the stocks and shares Isa is really important, even if you're investing smaller amounts.

All the links to the platforms I mentioned are in the description below. If you found this video useful, please don't forget to smash the like button for the YouTube algorithm. Thank you so much for watching I Really appreciate it and as always, I'll see you guys later. Foreign.