Share Dealing ISAs – Our Top 5 Picks
A Share Dealing ISA is similar to a regular share-dealing account but with the added tax benefits of an ISA.
Investing in an ISA is tax-free in this tax year up to a maximum of £20,000, and your returns will also be tax-free.
A Share Dealing ISA allows you to invest in various stocks and shares, ranging from ETFs and Investment Trusts to Managed Portfolios, making it easy to find the right account for your individual needs.
Here is a round-up of some of our top picks:
- Fineco – Offers a premium share trading service – Fineco Bank is an Italian broker & one of Europe’s largest banks regulated by the Bank of Italy. They have low share and ETF trading fees with a well-designed trading platform.
- IG – As well as a Share Dealing ISA, they offer a Smart Portfolio ISA for investors managed by BlackRock – IG is a UK trading platform fully regulated by the FCA. You can access 13,000 global stocks & ETFs through their share dealing ISA.
- Interactive Investor – With 4.7 out of 5 on Trustpilot with over 20,000 reviews, it suggests they have many happy users – Owned by Abrdn (Listed on the FTSE 100), they have a visually appealing platform which has been recently upgraded.
- AJ Bell – Low-cost priced investment platform – With over 346,000 customers and with assets totalling £65 billion, they are rated highly for customer service with good investment ideas & research
- Hargreaves Lansdown – The Uk’s largest investment platform – HL is listed on the FTSE 100 and offers a range of investment accounts and a recently added cash account
Our Top Picks - Sharedealing ISA Platforms
|Low cost share trading ISA platform. Earn interest on idle cash balances|
Trade from £1
£3/€3 per trade for UK & most European stocks.
US stocks start from $0.005 per trade.
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Sign up in minutes. Powerful trading tools. Low currency conversion fees. Fractional US or European share dealing. IBKR ISAs provide access to global markets and tools like GlobalAnalyst help you diversify your portfolio internationally.Your account is protected under the US Securities Investor Protection Corporation up to $500,000 (subject to a cash limit of $250,000).
|£2.95 per trade (UK shares)|
$3.95 per trade (US shares)
0% Platform fee until end of 2023/24 tax year. Then 0.25% pa.
Trade US shares in USD sidestepping FX conversion fees.
Open an account and get £500 in trading commissions (T&Cs)
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Fineco allows you to trade global markets in the local currency. Fineco are one of Europe's largest banks, listed on the Euro Stoxx 600 with 1.3 million clients. Capital at risk.
|£8 per trade (UK shares). Frequent traders from £3 per trade. US shares £10 per trade and for frequent traders £0 per trade. |
FX conversion fee 0.5%
Out of hours US share dealing option.
Zero commission on US shares.
Invest in over 13,000 shares.
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IG are a FTSE 250 company with a 24 hour helpdesk. Capital at risk
|£5,99 per trade (UK & US shares)|
£9.99 per month platform fee. For £19.99 pm you can benefit from 2 free trades pm and UK & US trading from £3.99.
FX conversion fee 1.5%
£9.99 pm subscription includes 1 free trade pm and as many Junior ISAs as you have children.
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Trusted by over 400,000 people. Fully FSCS protected. Capital at risk.
|£9.95 per trade (Frequent traders from £4.95)|
FX conversion fee 1%
Low cost ISA. No inactivity fees. Multi-award winning ISA
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Mobile app - manage your portfolio on the move. FSCS protected. Capital at risk.
|£11.95 per trade (Frequent traders from £5.95)|
Platform fee 0.45% pa ( capped at £45 a year for share dealing in an ISA)
FX conversion fee 1%
The UK's No 1 Broker
Access to live share prices.
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Trusted by over 910,000 clients with £123 billion in assets, HL are a FTSE 100 company. Capital at risk.
What is a Share Dealing ISA?
A Share Dealing ISA (Individual Savings Account) allows individuals to invest in various assets, such as shares, bonds, and funds.
It is similar to a stocks and shares ISA – the only difference is that the provider will offer you the ability to buy and sell shares, as not all do.
How does a Share Dealing ISA work?
A Share Dealing ISA works the same way as a traditional cash ISA.
The main difference is that instead of depositing cash into the account, you invest in shares, bonds, and other financial instruments.
A Share Dealing ISA holds your investments tax-efficiently, meaning any capital gains or dividends you earn on the investments are tax-free.
What are the benefits of Share Dealing ISAs?
There are several benefits to investing in a Share Dealing ISA, including:
- Tax efficiency – As mentioned, any capital gains or dividends earned on investments held within a Share Dealing ISA are tax-free. This means that investors can potentially make higher returns on their investments than they would if they were investing outside of an ISA
- Flexibility – Share Dealing ISAs offer a wide range of investment options, meaning that investors can diversify their portfolios and spread risk across different assets
- Easy to manage – Share Dealing ISAs can be managed online, enabling investors to keep track of their investments and make trades whenever they want
Who is eligible for a Share Dealing ISA?
Share Dealing ISAs are available to UK residents at least 18 years old. A further requirement is that you have stayed within the ISA limit for the current tax year. The annual ISA limit for the 2023/2024 tax year is £20,000.
How can I open a Share Dealing ISA?
Opening a Share Dealing ISA can be done online relatively quickly. You will have to provide some personal information, such as your name, address, and proof of identity.
Once your account is open, you can start trading once you have transferred funds into your account.
How to choose the best Share Dealing ISA provider
When choosing a Share Dealing ISA provider, there are a few key things to consider:
- Fees – Some Share Dealing ISA providers charge higher fees than others, so it’s essential to compare the fees charged by different providers before making a decision.
- Investment options -Not all Share Dealing ISA providers offer the same investment options, so make sure you choose a provider that provides your preferred investments, e.g. if you wish to trade US stocks, then pick a platform that offers this service.
- Platforms – Some Share Dealing ISA providers offer a more advanced trading platform than others. Think about how crucial it is to have an innovative platform that provides trading and research tools.
- Research and tools – There can be a great deal of variation in the availability of research and tools among Share Dealing ISA providers. To make informed investment decisions, consider the level of research and tools you require.
- Customer service – Evaluate the provider’s customer service. Good customer service cannot be overstated when you have questions or need assistance with your account.
- Regulation – Verify that the Share Dealing ISA provider is regulated by the Financial Conduct Authority (FCA). Doing this ensures that the provider adheres to strict rules and regulations to protect your investments.
Once you have considered these factors, it’s a good idea to read reviews and compare the different Share Dealing ISA providers to find the one that best suits your needs.
How to manage your Share Dealing ISA
Managing your Share Dealing ISA is relatively straightforward, but there are a few key things to keep in mind:
- Diversify your investments – Spreading your risk across different assets is essential to diversify your investments. Consider investing in various assets, such as stocks, bonds, and funds.
- Keep an eye on your investments – Monitor their value changes. Most good platform providers provide mobile apps to help track your investments on the move.
- Use stop-loss orders – A stop-loss order is an instruction to sell a security when it reaches a specific price. By doing this, you can limit your losses if the value of your investments declines.
- Use limit orders – Limit orders are orders to buy or sell securities at a specific price. Doing this could earn higher investment returns and take advantage of market movements.
- Stay informed – Stay up-to-date on market developments and news that may affect your investments. You will be able to make better investment decisions if you do this.
- Review your portfolio – Regularly review your portfolio and make adjustments as needed. Doing so can align your investments with your investment goals and risk tolerance.
In summary, Stock Dealing ISAs offer investors an efficient and tax-effective way to invest in the stock market, which could result in higher returns.
Fees, investment options, platforms, research, tools, and customer service are all factors to consider when choosing a provider for Share Dealing ISAs.
Keep in mind that diversification is essential, as is keeping an eye on your investments, using stop-loss and limit orders, staying informed, and reviewing your portfolio regularly.
You should also remember that shares in a Share Dealing ISA can drop in value and rise. Before making any investment decisions, do your research and understand the risks.
A financial advisor can assist you if you lack the time or inclination to make investment decisions.
Share Dealing ISAs can be an excellent option for those looking for a tax-efficient way to invest in the stock market. By making informed decisions and managing your investments effectively, you can make the most of your Share Dealing ISA and potentially achieve your investment goals in the long term.