Most UK investment platforms charge fees in one of three ways: a percentage of your portfolio, a flat annual subscription, or nothing at all. Since June 2026, the no-fee category has expanded significantly — understanding all three is now essential to making the right choice.
Percentage fee platforms
Examples: Hargreaves Lansdown, AJ Bell, Vanguard, Fidelity
You pay a fraction of your portfolio each year. The more you have invested, the more you pay in absolute terms.
| Platform | Fund rate | Fund dealing | ETF/share cap |
|---|---|---|---|
| Hargreaves Lansdown | 0.35% | £1.95/trade | £150/year ISA |
| AJ Bell | 0.25% | £1.50/trade | £42/year ISA |
| Fidelity | 0.35% | £0/trade | £90/year ISA |
| Vanguard | 0.15% (min £48/yr) | £0/trade | — (own funds only) |
HL reduced its rate from 0.45% to 0.35% in March 2026 but introduced a new £1.95/trade fund dealing charge. The ETF cap also rose from £45 to £150.
Pros:
- Low absolute cost when starting out — 0.15% on £10,000 is just £15/year before dealing
- Fees grow proportionally, which feels reasonable on small portfolios
Cons:
- Fees scale with your portfolio — 0.35% on £200,000 is £700/year
- HL and AJ Bell have no fund fee cap — costs keep rising with portfolio size
- Dealing charges add materially for fund investors (HL: £1.95/trade)
Best for: Investors with fund portfolios under £30,000, particularly at Fidelity (0.35%, no fund dealing charge) or Vanguard (0.15%, minimum £48/year).
Flat fee platforms
Examples: Interactive Investor
You pay a fixed monthly or annual fee regardless of portfolio size (up to any plan limit).
| Plan | Annual cost | Portfolio limit | Fund dealing | Share dealing |
|---|---|---|---|---|
| ii Core | £71.88 | Up to £100,000 | £3.99/trade | £3.99/trade |
| ii Plus | £179.88 | Unlimited | £1.49/trade | £3.99/trade |
| ii Premium | £479.88 | Unlimited | Free | £2.99/trade |
Pros:
- Outstanding value on larger portfolios — the fee stays fixed as your wealth grows
- Predictable costs year to year
Cons:
- Expensive relative to portfolio size when starting out — £71.88/year is 0.72% on a £10,000 portfolio
- Core plan limited to £100,000; larger portfolios pay £179.88/year
Best for: Fund investors with portfolios above £27,500 where ii Core undercuts HL, and above £41,000 where it undercuts AJ Bell.
Zero fee platforms
Examples: Barclays Smart Investor, InvestEngine, Trading 212, Freetrade
No annual platform fee. These platforms are free to hold investments.
| Platform | Annual platform fee | Dealing | Investment types |
|---|---|---|---|
| Barclays Smart Investor | £0 | £0 for funds / £6 for ETFs & shares | Funds, ETFs, shares, investment trusts, bonds |
| InvestEngine | £0 | £0 | ETFs only |
| Trading 212 | £0 | £0 | ETFs and shares |
| Freetrade Basic | £0 | £0 | Funds, ETFs, shares |
Barclays is the most significant new entrant here: it removed its platform fee in June 2026 and offers free fund dealing with a full investment range. That combination didn’t exist in the UK market before.
Freetrade moved to a free Basic plan and expanded its range to include mutual funds — making it genuinely competitive with paid platforms for the first time.
Pros:
- Lowest possible ongoing cost
- Barclays offers the full investment range for free; others are more limited
Cons:
- Barclays charges £6/trade for ETFs and shares — frequent traders pay more
- InvestEngine and Trading 212 offer no funds (unit trusts/OEICs)
- Freetrade is app-only with a 0.99% FX fee on non-GBP trades
- Less depth in research tools than the established paid platforms
Best for: Fund investors who want the full market at zero cost (Barclays), or passive ETF investors who want maximum simplicity (InvestEngine, Trading 212).
The crossover with paid platforms
For fund investors using paid percentage platforms, the crossover with ii Core is:
| Comparison | Crossover |
|---|---|
| HL (0.35% + £1.95/trade) vs ii Core | ~£27,500 |
| Fidelity (0.35%, no dealing) vs ii Core | ~£34,000 |
| AJ Bell (0.25% + £1.50/trade) vs ii Core | ~£41,000 |
| Vanguard (0.15%, min £48/yr) vs ii Core | ~£80,000 |
For Barclays: no crossover is needed for fund investors — it’s always free.
The ETF cost comparison has changed
HL’s March 2026 fee changes restructured its ETF economics significantly:
| Platform | ETF ISA annual cost (12 trades/year) | Notes |
|---|---|---|
| InvestEngine | £0 | ETF-only |
| Freetrade Basic | £0 | ETFs, shares, funds |
| Trading 212 | £0 | ETFs and shares |
| AJ Bell | £42 cap + £5/trade | Cap makes large portfolios cheap |
| HL | £150 cap + £6.95/trade | Cap up from £45 in March 2026 |
| Barclays | £72 (12 × £6) | No cap |
HL’s ETF cap rising from £45 to £150 made it considerably less competitive for ETF-only investors. AJ Bell’s £42 cap now stands out as the cheapest capped ETF option. Free platforms remain the best for ETF cost minimisation.
Which should you choose?
A practical framework:
- Fund investor at any size → Barclays first (free), then compare HL/Fidelity/AJ Bell vs ii at your specific size
- Fund investor, portfolio below £27,500 → HL (0.35%), Fidelity (0.35%, no dealing), or AJ Bell (0.25%)
- Fund investor, portfolio above £27,500 → ii Core or Barclays
- ETF investor → InvestEngine, Freetrade, or Trading 212 (all free)
- ETF investor wanting investment trust/bond access → AJ Bell (£42/yr cap) or ii Core
Use our fee calculator to compare all nine platforms at your exact portfolio size, account type, and trading frequency.
Fee estimates based on published rates as of June 2026. Always verify current fees directly with your provider.