Hey guys, it's Sasha. If you live in the UK and you want to invest in the stock market, you need a stocks and shares. Isa I Am going to tell you what the best ises are in 2024 depending on what you want to do with it because different ises are better for different people depending on what you want to invest in and how you want to invest. An Isa is an account that lets you invest up to 20,000 a year without having to pay any taxes as stocks and shares.

Isa Lets you put that money into the stock market. The 2,000 cap is on how much money you put into it. So even if that goes up a lot over time, you still don't have to pay any tax if you invest outside an Isa. You have to pay capital gains tax when the investment goes up and you have to pay dividend tax if your stocks pay you dividends and you don't want to be paying tax if you don't have to.

You used to get a big fat 0% allowance on both capital gains and dividend tax, so in the past if you invested outside in Isa you could make it work. but now those allowances have been pretty much destroyed by the government. The capital gains allowance has gone from 1,300 2 years ago to just 3,000 this year and the UK dividend allowance went from 5,000 to just 500. So you really want to use an Isa if you want to invest now.

there are a lot of different stocks and shares Isis out there. It can be really hard to decide which one of all of these you need to pick and I'm going to make it super easy for you I'll tell you what's what, but before I do I have to make this disclaimer: I am not your financial advisor I am just a random guy on YouTube and I've done my analysis that I'm going to share with you so please take it for what it is. My honest opinion based on numbers now: I do have affiliate links for many of the different stocks and shares Isis and some of those affiliate links will give you bonuses and free shares and whatever. and if you click those to sign up I will get paid a small amount of commission, but my recommendations in here are genuinely not at all based on that.

In fact, I am choosing not to recommend many ises many stocks and shares Isis that pay really high affiliate commissions and I will recommend somewhere I Don't make any affiliate Revenue at all I have marked the links in the description so that you know which ones are affiliate links and which ones are not for transparency. and while there are dozens and dozens of different stocks and shares Isis out there I Think the vast majority of them are complete rubbish because they do one of the following things: One, they only let you invest in one of their special funds picked by experts which massively underperform the market while charging you expensive fees. Hello, we is experts I would never recommend anyone waste their money on those or two. A lot of the Ises offered by Banks and companies like Hre Lown will charge you super expensive trade fees like 12 per transaction which is extremely expensive.

Many of them have hidden fees like really expensive foreign exchange fees that they hide on a separate page paying something like 1% on every transaction or some of them have very expensive annual management fees. So I don't recommend any of those Brokers out there on that basis that completely rip you off. And many of the new Brokers that have turned up more recently companies like Weeble or public or stake or lier don't offer Isers at all. Now remember you can only pay into one stocks and shares Isa in any Financial year that runs from the 6th of April to the 5th of April the next year.

So you need to pick carefully which one it is that you want to use for the whole year because you can't pay into any other one. And really, once you cut out all the super expensive options and all the rubbish ones, you only have four choices left. Interactive Brokers Trading 212, Invest engine and Vanguard and in my opinion everything else is a lot worse. And out of these options, the best one really depends on what you want to invest in and how you want to invest First, if you just want to invest in the S&P 500 or the the Global Stock Market Index or something like that, a really sensible, a very good idea.

You can do that completely for free on trading to12 and Invest Engine. you can go and invest in VSA which is the Vanguard S&P 500 Index without paying a penny. Except for the 0.07% fund fee, which you pay wherever you buy vaa, you never really actually pay it. It just automatically gets charged by the fund and is reflected in the price.

You can also invest in a load of the different Vanguard funds in the Vanguard Isa and it's also free except you have to pay a 0.15% account management fee, which maxes out to 375 a year if you reach a portfolio of 250,000 A 0.15% management fee is more than zero with the other ones, but it's still super cheap and the benefit is Vanguard is one of the world's biggest asset managers, one of the most stable. It has trillions in dollars in assets under management. Invest Engine is a relatively small, very new brok in the UK without really having much history, and trading 212 has a bit more history than Invest Engine, but it's still much smaller than Vanguard. With these free options, there is always that risk that you know.

they go and change their fees. They go and CH change their terms and conditions. They start charging for things that they didn't charge for before. that's happened a few times already.

So you've got to decide if you want to go for one of the free options. With that in mind, if you want to buy individual stocks inside your stocks and shares Isa then you can't do that with Vanguard or with Invest engine. So the two options that are available are interactive Brokers and trading 2 on2. The fee for trading to12 is very simple.

You just pay 0.15% for an exchange fee when you buy or sell a stock and that's it. It's very easy. So if for example, you go and deposit 200 a month into your trading 212 Isa and you go and buy some US Stocks You will pay 30p in foreign exchange fees when you buy those and you'll also remember have to pay that 0.15% when whenever you sell in the future. it's important to remember that bit.

This is very cheap. certainly a lot cheaper than paying 12 per transaction, which is what many banks or big Brokers like hard GES lands down charge. With interactive brokers, there are two fees to pay. you have to pay a foreign exchange fee of 0.03% but you also have to pay commission when you buy or sell stocks.

If you select the tier pricing option in your account, you pay 0.35 cents per share in commission, and there is a minimum of 35 cents per transaction. So if you're buying, say 10 shares or less, you're going to pay that 35 which is probably going to be the case in most situations, but Interactive Brokers has a minimum monthly fee of 3. That 3 includes any commission that you pay. So realistically, you're probably just always going to be paying 3 because it is unlikely in most months inside the stocks and shares Isa that you will be breaking 3 in total commission spend.

If you go and buy a few stocks for example and you spend 2 on commission in total, they'll charge you that extra1 fee to make it to 3 per month. So the gist of it is this trading 2 on2 is going to be cheaper for most people because it's just 0.15% and there is no minimum you would have to make over 2,000 worth of Trades per month just to recoup that3 fee that Interactive Brokers charge every month. But and this is a big but if you think ahead it does kind of even out. Let's say you invest for 10 years and you put your money in all the time month after month, year after year and at the end of the 10 years your stocks and shares Isa is at say I don't know.

Makeup number 200,000 for example. at some point in the future you will need to sell your stocks and shares I You will need to sell the stuff to get the money out whenever you choose to do that. If you go and sell the 200,000 worth of US Stocks with trading to one two, you will pay 300 in foreign exchange Fe P because that's 0.15% of 200,000 But with interactive brokers, if your 200,000 for example, split between I don't know 10 stocks and the average share price of those stocks is 200, then you're going to be selling 100 shares of each company. So that'll cost you 35 P per stock or 350 in total to liquidate the entire thing.

Okay, plus there's going to be the foreign exchange fees. They add up to 60, but when it comes to sell in in the distant future, if you have a large portfolio, if you have 200,000 for example, it'll cost you 300 with trading to1 two, but only 6350 with interactive brokers. So in this example, you actually recoup most of those 3 monthly fees at the end. Now I Personally use both.

I Love the features on interactive brokers, but a lot of people find interactive brokers a bit old school, a bit clunky, a bit difficult to use. Trading 212 is a lot more modern, a lot more simple to use. There's a lot less things in there, and the truth is, both are really, really cheap compared to all of the other options. we are comparing tiny, tiny differences in the grand scheme of things.

You know, tiny fractions of a percent. Interactive Brokers is a huge International broker, which has its advantages on things like continuity security. You know the likelihood of fees not changing, the likelihood of them changing their terms. you're not liking those new terms and you're wanting to change broker which comes with having to move your portfolio blah blah blah.

But it can be difficult to figure out how Interactive Brokers actually works. It can be a bit clunky, a bit cumbersome to make trades, so that's the tradeoff. If you want to invest in both index funds and individual stocks, that the best option probably is going to be trading 212. because Interactive Brokers has much higher minimum commission amounts on UK stocks which includes index ETFs and on trading to one two ETFs priced in pounds are completely free to buy and sell and US stocks at the same time are really cheap.

Also, if you want to invest in UK stocks or European stocks because I know there are going to be some people who like self-inflicting pain. then again, trading to On2 is probably going to be the cheaper option because their foreign exchange fee is lower than the commission that you'll pay for the same stocks on Interactive brokers. If you want to invest in something really obscure, though, Interactive Brokers is probably more likely to have smaller and less Common Stocks because of their Global reach and size. Now at the end of the day, the most important thing is to invest your money and all of these Brokers will let you do that.

the future you will say thank you to you for making sound financial decisions today and putting your money to work and your future. You probably doesn't care quite as much precisely exactly which broker it is that they used. Now you do need to pick whichever platform you're happy with, whichever one you prefer, whichever one you're comfortable with. And the truth is they all have their pros and cons.

All of these are fully regulated by the FCA They're all covered by the Financial Services compensation scheme and remember, you can only pay into one of these in any One Financial year. So You' got to do a bit of thinking before you pick, but you can open a new one of them every Financial year and you can keep your old ones. You can keep using your old ones. You can keep buying and selling stocks doing all of that stuff.

You just can't make any more deposits into those old ones. If you have any questions about stocks and shares Isa about anything Isa related here, go and stick them in the comment section. I Will do my best to answer as many of them as possible over the next few weeks and to clarify any points or maybe correct something that I got wrong. Now go get your Isa and I'll see you later.

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