Hey guys, it's sasha in this video, i will explain exactly which stocks and shares iso accounts are the best in the uk in 2022.. There are quite a few options out there. So what i'll do is i'll explain exactly what the pros and cons of the different accounts are and i'll tell you what the difference between them is to make it easier for you to make up your own mind. I will also group these up into two different bits based on what you want to do with your stocks and shares isa, because they all work in slightly different ways and they have slightly different ways of pricing the best stocks and shares isa account for me.

Might not be the best one for you, because we invest in different things. We may invest different amounts in different frequencies. I have the links to all of these accounts in the description to make it nice and easy for you if you want to go and check them out. Some of those links are affiliate links where i get a paid commission.

If you choose to use the link, others are not, and i get absolutely nothing for them and just to be clear, i am doing this comparison without any bias. I will tell you the good and the bad things about all of these platforms and i will recommend platforms based on their merits. Everything in this video is based purely on my opinion. None of the companies that i'm talking about have any idea.

I am even making this video, i am not your financial advisor and i am just a random guy on youtube. So if you do want personal financial advice specific to you to make your decision, please go and find a suitably qualified, professional and just another quick reminder before we dive into all the details. A stocks and shares isa account is a special type of investing account available in the uk that lets you invest in the stock market without having to pay capital gains or dividend taxes. You are allowed to deposit up to 20 000 pounds into your isis every financial year in the uk, and the financial year runs from the 6th of april to the 5th of april the next year and no matter how much your ices grow if they grow to 100, 000 or a million pounds.

However much it is, you won't have to pay any of those taxes now remember. If you already have a stocks and shares isa that you have paid into during this financial year, you will have to wait until the new financial year to go and open a new one. If you want to do that and pay into that one instead. Now, if you do want to switch iso providers in this way, you are allowed to keep your old stocks and shares isa going and add the new one.

The rule is that you can only deposit into one of those in any one financial year, but you can still keep the old one running and you're allowed to sell stocks. Buy other stocks manage your account. However, you want. You can also switch all of your investments if you really want to, but be very careful, because you may have to pay fees to sell your shares and then re-buy them again on a new platform, because many of these platforms don't allow in species transfers, or at Least, to limit them in some way, and there is also an element of risk if you are transferring just cash of being out of the market for, however long it takes for you to sell out of your positions in one place, transfer the money and buy it Into the new place, so there is that as well, but let's go through the best options available in the uk for stocks and shares isis in 2022.

First, let's talk about the most common, investing style for most people. Picking stocks is probably not a good idea, because most active investors will lose to the overall stock market over the long term, so for the majority of retail investors investing in something like the s p 500 index or the total world stock market index or whatever it Is that you prefer may be the better option? So if that's what you want to do because you're sensible, then the best stocks and shares isa out there, for you is invest engine investing in etfs in the invest engine do-it-yourself portfolio is completely free. There are no monthly fees and no trade fees, no any other kind of fees. Now the etfs do still have those tiny annual management fees built into them.

Those apply, regardless of which platform you use to buy an etf and they are bait into the return of the etf anyway, so you won't ever actually even see that money or have to actually pay that fee. But at the moment invest engine is the only stocks and shares isa platform available in the uk that is completely 100 free for investing in etfs the ishares has a p 500 fund with a ticker i user is available. It's basically identical to the vanguard, vusa one with the exact same 0.07 annual fee. If you want to invest in the ftse 100, for whatever reason you can do that as well, and there are the accumulating versions of both of those funds in there as well.

These will automatically reinvest your dividends for you. The downside with invest engine is that you can only invest in etfs and, although they have quite a few, it is still a somewhat narrow choice of investment options. So if you go with invest engine, you have to stick to only investing in the index, another app that allows you to invest in the s p, 500 or whatever index it is that you prefer for free is trading two one, two, the problem with trading to One two is that, as i'm recording this video in march 2022 trading, two one two have been closed to new customers for one year and two months, so you can't actually go and open a new account with trading one two. If you don't already have your iso with them, you can only go and join the wait list.

They seem to be very slowly solving whatever issues they have had over the last year and slowly opening back up and going through that wait list. But it is absolutely impossible at the moment to know exactly how long it might take on when you might actually be able to open an account. Now they don't charge a monthly fee for their isa, which is a plus and buying etfs that are priced in pounds. Is completely free if you do already have the account or if they open up this later so in on? If that is available, that is another free option.

Now third place goes to vanguard. They do charge a 0.15 annual management fee which is more than zero, but is actually still really cheap. This is a huge international investing company. They run the biggest etfs out there and if you want, maybe that extra little bit peace of mind or simplicity or whatever, even if you invested for 20 000 pounds that you're allowed to invest in the course of a year, the fee will just be 30 pounds Per year, or only 2.50 per month, which makes vanguard still cheaper than the likes of free trade, where you have to pay three pounds a month for just the isa account before any extra fees.

So let's say you decide that you do want to buy individual stocks, though in your stocks and shares isa. What is the best option there? Maybe you want to dabble, let's say 5 or 10 or 20 of your portfolio or whatever? Maybe you want to put all of your investments in the stocks, because you feel that you can do better than the stock market now, if you want to invest in individual stocks, the best option out there, in my opinion, is interactive brokers, who have just recently launched Their isa for the first time, their pricing structure is actually pretty complicated. I have a whole video, where i explain in a lot of detail how that pricey structure works, i'm going to put a link up here and in the description below. In short, you have to pay three pounds a month to use the interactive broker stocks and shares isa, and there are also trading fees, although you probably won't have to pay them.

Let me explain: most of you watching will probably be investing in u.s stocks and the price for trading u.s stocks on interactive brokers is pretty low. Again. I explained this in full detail in that other video, but buying about a hundred pounds worth of shares, for example, cost something like 30p, which is not point three percent or buying one really expensive share for let's say 850 or 650 pounds, roughly whatever one tesla share, Cost a few days ago that cost about 48 p or not 0.07. But the best thing is that that first three pounds worth of fees that you incur in any month are basically written off because they're included in your monthly fee.

So for most people using the isa you'll only ever pay that three pounds a month and nothing else other than maybe just a few cents for foreign exchange fees, foreign exchange fees are almost negligible. The one downside with interactive brokers is that the platform is just a bit more old-school than some of these new apps. The websites and app are just a bit more clunky and in part that is because they have way more features, way, more things that you can do, but if you're brand new to investing, it might take just a little bit longer to figure out. What's what or how to go and do specific things now in second place is once again trading to one two: they charge 0.15 and foreign exchange fees for buying u.s stocks or any stocks not denominated in pounds so that same 100, pound transaction, for example, will cost Just 15p, which is very cheap, that's cheaper than what i just told you about interactive brokers, but when you go to bigger transactions, for example, that same one tesla share transaction will cost you 98b, which is more than double what it'll cost on interactive brokers.

Now the big advantage is that trading 202 do not have a monthly account fee for the isa. So they can be a very, very good cheap option and they may be would have been number one if they were actually available, but because you can't open an account at the moment. Perhaps they shouldn't be on this list at all anyway. Just remember, while trading 202 do not charge a monthly account fee like interactive brokers or free trade, they did recently update their terms and conditions just in the last few days, and in that update, they have made a change where they reserve the right to unilaterally terminate The agreement on our sole discretion and without prior notice in the event that your account has been inactive.

No transactions were made for a period of six consecutive months before this change. This rule only applied. If you didn't log in so basically they don't charge you a monthly fee. But if you stop earning the money by, you know making transactions that earn them fees, they can go and shut down your account without any warning if they just feel like it.

So just be mindful of that. Third on this list is free trade. The platform has a three pound a month fee for the isa, but you will also have to pay a 0.45 for an exchange fee which is pretty expensive, especially for larger transactions. So if you're buying that one share of tesla for 650 pounds or 850 dollars, it'll cost you 48 p with interactive brokers.

But remember you don't have to pay it if you're not incurring more than three pounds a month in fees in total and for most people using a an isa with typical monthly transactions of like a few hundred pounds, or something like that. You probably will never go over that three pound in fees, so, if you're buying at one share of tesla it'll cost you 48 p with interactive brokers, it costs 98 p with trading to 1 2, but it'll cost you 2 pounds 93 with free trade, and that Is on top of that three pound a month monthly fee, so yeah that is quite a lot more expensive and free trade also have another issue. They have a paywall, so you have to pay 10 pounds a month for their plus account. If you want basic things like being able to use limit orders or to buy some of the smaller stocks that are hidden behind this paywall, these features are free on other platforms.

So it's maybe a little bit frustrating. I have a feeling that over the next year, we're going to have a lot more competition in the space, which will hopefully mean we're going to get better stocks and shares isa accounts available and the prices will begin coming down. Lightyear and stake are two new investing apps that currently do not offer as stocks and shares isa, but both said that they are planning to launch them at some point soon and there's also a chance that one of the big new us platforms like robin hood or M1 or somebody else like that, will come to the uk as well now you'll notice that i didn't talk a lot about some of the other, investing platforms that maybe you expected me to talk about companies like aj bell, hargreaves, lansdowne, ig, interactive investor, barclays, iweb, orca, Fineco and many others, and the reason for that is because they all charge eye-wateringly expensive fees in comparison when there are very, very reasonably priced options available, i just do not see a good reason to pay the ridiculously expensive fees, some of those platforms charge if you're. Looking at one of these other platforms - and you want to sense check it yourself, go and look at their trading fees, their foreign exchange fees and their annual management fees.

Many of them charge around about one percent foreign exchange fees for every trade that you make, and that is a very, very expensive price in today's market. Paying one percent to buy a stock and then another one percent to sell is going to eat very, very heavily into your returns, and many of these older platforms also charge you a fixed fee per trade, usually somewhere between four pounds and 12 pounds for every single Trade that you make, and especially if you're buying smaller amounts or stocks that are cheaper, that can really be quite expensive. Those fees really really do add up over time and then on top of those crazy fees. Some of these old school platforms also then go and charge you an annual management fee, so they'll skim, let's say 0.25 of your portfolio after they've already charged you, those other expenses transaction foreign exchange fees, so be very, very careful when you're comparing platforms to look out For all of these hidden fees, i also did not talk about some other really popular stocks and shares isa accounts, which are the robo advisor stocks and shares isis, things like wealthify, money, farm nutmeg and the rest of them.

I am really not a big fan of what these platforms are offering, because, in my opinion, these are products that are very poorly designed and inappropriately marketed. They try and sell. What, in my opinion, is a relatively complex, actively managed fund to relatively unsophisticated investors, where returns are generally significantly below what the stock market overall offers, even in the highest risk portfolios? And i am not convinced at all by the risk management benefits or the approach of just diversifying between every asset class available on a fixed proportion basis that seems to have been designed by somebody sticking a finger in the air. I don't really understand why things like market cycles, the customer situation like their age or anything else, is completely not included in this at all.

I know that some of these platforms are really popular because they have millions of customers and they brand themselves as being the simple way to invest. But i just do not fundamentally agree, and i don't think that these are appropriate for most consumers and therefore i don't think there is a good justification for the incredibly poor results they deliver and there is no good justification for me to actually talk about them. So, to recap: if you want to invest in just the stock market index, like the s p, 500 or whatever my personal number, one pick is invest engine. My number two pick is trading two one two and my number three pick is vanguard.

If you want to pick stocks individually, my number one pick is interactive brokers. My number two is again trading two one: two: if they're open and number three, although trading by some margin, is free trade. 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 really appreciate it and, as always i'll see you guys later, you.