Interactive Investor Services and Investment Options Explained

Interactive Investor offers a range of services designed to help you make the most of your investments. You can choose from a variety of investment options, including ISAs, SIPP, and Stocks and Shares ISAs.

Their online platform provides easy access to a wide range of investment products, including funds, shares, and bonds. This allows you to diversify your portfolio and potentially increase your returns.

One of the key benefits of Interactive Investor is the ability to trade and manage your investments online, 24/7. This flexibility is particularly useful for those with busy lives or those who like to stay on top of their investments.

Their services also include regular market analysis and research reports, helping you make informed investment decisions.

Interactive Investor was founded in 1994 by Sherry Coutu and funded by angel investors Richard Caruso and John Cooper, and the venture capital company, Arts Alliance.

The company initially provided front-end research to the investment community and allowed investors to communicate through discussion boards. This was a key feature that set Interactive Investor apart from its competitors.

Sherry Coutu was the CEO and Chairman until 2000, when the company was floated on the London Stock Exchange, gaining a first-day valuation of £550m. This was a significant milestone for the company.

However, the company was unprofitable in 2000 and by July 2001 its share price had fallen below 25 pence after reaching 415p in March 2000. This was a challenging time for Interactive Investor.

In 2001, Australian financial services group AMP bought Interactive Investor for a little over £50m. This marked a significant change for the company.

Tomás Carruthers, the company's CEO, was retained by AMP and in 2003 he regained control through a buy-out. This was a key moment in the company's history.

Interactive Investor first provided a dealing service in 2010, when it joined forces with Halifax Share Dealing. This expanded the company's offerings to its customers.

The company set up its own dealing function and customer service centre in Glasgow in 2011. This move helped to further establish Interactive Investor as a major player in the investment industry.

Interactive Investor offers a range of services and products that make investing accessible to everyone.

You can manage and trade shares, funds, investment trusts, and bonds via trading accounts, ISAs, and SIPPs.

The platform also provides comprehensive market data, portfolio-tracking tools, and investment filters to help you make informed decisions.

Interactive Investor introduced free regular investing in January 2020, making it the first big investment platform to scrap its fee for the service.

Interactive Investor offers a wide range of fund investing options. You can invest in over 3,000 funds, including Vanguard funds, through a General Investment Account, Individual Savings Account (ISA), or a Self-Invested Personal Pension (SIPP).

The platform provides various tools to help you pick the best funds for your portfolio, such as "Quick start", "Super 60" and "ACE 40 ethical" best buy lists. These lists are specifically selected to meet a range of investment and risk profiles.

Interactive Investor's Quick Start Funds are ideal for beginners, offering low-cost and diversified investment options. These funds are specifically selected to meet a range of investment and risk profiles, and are provided by Vanguard and Columbia Threadneedle.

The platform also offers model portfolios, which can take the strain out of selecting which assets to invest in. You can opt for actively managed or passively managed income and growth portfolios, each made up of a specific mix of assets.

Here are some examples of the model portfolios offered by Interactive Investor:

The model portfolios are regularly updated, providing transparency into the decision-making process that guides asset mix and buying and selling decisions.

International investing can be done with Interactive Investor, allowing you to trade in international stocks and shares.

You can check if a specific stock is available by typing its name into the search for an investment box on the II website, and it will return any matches from the list of securities offered.

Account-holders get one free trade per month, which can be a great way to dip your toes into international investing without incurring extra costs.

Investing internationally does come with risks, and it's essential to be aware of the potential for losses that exceed your initial deposit.

You can buy, hold, and sell a wide range of investment instruments in a Trading Account, which is also known as a General Investment Account. This account is a great option for those who want to trade and invest without the tax benefits of an ISA.

The fees for making trades in a Trading Account are quite reasonable. Your first trade per month is free, and then it costs £3.99 for UK and US shares, and £9.99 for other international shares.

If you're planning to make regular investments, such as buying a certain investment monthly, the fees are free. This is a great way to save money on trading costs.

Here's a breakdown of the fees for making trades in a Trading Account:

It's worth noting that any profits or income from your investments will be liable to capital gains tax or income tax, respectively. This is something to keep in mind when deciding how to structure your investments.

Interactive Investor has been on a buying spree, acquiring several businesses to expand its services and customer base. The company bought personal finance magazine Moneywise from Reader's Digest in 2004.

In 2015, ii joined forces with Motley Fool Share Dealing, replacing Halifax Share Dealing as its service provider. This move marked a significant shift in the company's operations.

The acquisition of TD Direct Investing from Toronto-Dominion Bank in 2017 was a major milestone, bringing 300,000 UK customers to the company. The deal was financed by J.C. Flowers & Co, which became the majority shareholder in the group.

In 2019, ii acquired Alliance Trust Savings, bringing together the two largest flat-fee online investment platforms. This move further solidified the company's position in the market.

The company continued its acquisition trail in 2020, purchasing The Share Centre, an independent retail stockbroker. This deal marked another significant expansion of ii's services and customer base.

Abrdn plc, a British-based financial company, acquired ii for £1.49 billion in December 2021. The sale was completed in May 2022.

Richard Wilson would continue to lead the business.

Interactive Investor has been on a shopping spree, and its latest acquisition is a big one. In March 2021, the company purchased the EQi direct-to-customer business from Equiniti Group plc.

This deal is a significant one, with a price tag of £48.50 million. Interactive Investor is paying top dollar for the acquisition, which will bring its assets under administration up to £50.0 billion.

The EQi acquisition will also give Interactive Investor a boost in customer numbers, increasing its customer base from 350,000 to 400,000.

Interactive Investor's fees are a bit complex, but don't worry, I'll break it down for you.

You'll pay an account fee, which varies depending on the account you choose, and then you'll pay for each trade. But, you'll get your first trade each month free!

If you have a smaller portfolio, Interactive Investor might not be the cheapest option, but it's worth considering if you have a larger investment.

The account fee is flat, meaning it's not a percentage of your investments, so the more you have invested, the lower the actual charge will be as a percentage of your investments. This is great news if you have a substantial investment portfolio.

For example, with £50,000 invested, you'd be paying around £120 as an account fee, which is only 0.12% of your investments. That's very cheap!

However, if you have a smaller investment, like £1,000, you'd still be paying around £120, but with Hargreaves Lansdown, you'd only be paying £4.50, which is a huge difference.

If you have investments under £30,000, it's probably better to use another platform, but if you have more, Interactive Investor is a great option.

For a Stocks & Shares ISA and a General Investment Account, also known as a trading account, it's £4.99 per month, and you get both accounts for that price. That's a great deal!

Your first trade per month is free, which is a nice bonus. After that, it will cost you £3.99 for UK and US shares, and £9.99 for other international shares.

Making investments costs £3.99 per trade for UK and US shares, and £9.99 for other international shares, unless you're making a regular investment, like buying a certain investment monthly, then it's free! That's a great incentive to invest regularly.

There are no fees for taking money out of your pension, which is a big plus.

Regular investing is completely free, providing you invest £25 or more, which is a great way to start investing.

Interactive Investor is a safe and secure platform to deal with shares. It's regulated by the Financial Conduct Authority (FCA), which is a big deal.

Your money is protected by the Financial Services Compensation Scheme (FSCS), which gives you up to £85,000 worth of protection in case anything goes wrong. This is incredibly unlikely, but it's good to know.

Interactive Investor is owned by abrdn, a massive global investment company, which gives it an added layer of security.

Any cash you have is held in trust accounts by separate banks, and Interactive Investor can never access it. Your money within investments is with the investment funds themselves, so there's even more protection.

Interactive Investor requires two-factor authentication, which means only you can access your account. And, it uses advanced encryption to help safeguard your personal data.

Here are some key safety features to keep in mind:

Interactive Investor's app is also safe and secure, with a high level of protection in place to keep your data and money safe.

Interactive Investor has a user-friendly platform that makes it easy to use. This is a major advantage for investors who are new to the market or prefer a straightforward experience.

The platform's transparency about pricing is another pro. This means you know exactly what you're paying for, with no hidden fees.

You can also count on great customer support from Interactive Investor. However, this support is limited to certain hours and doesn't include live chat.

Here are some of the key pros and cons of Interactive Investor in a nutshell:

One of the standout features of this platform is its flat monthly fee, which provides a predictable and transparent cost structure. This fee is ideal for those who want to avoid surprise charges.

The platform offers a huge range of investment options, making it a great choice for those who want to diversify their portfolio. This range of options includes an ISA and pension (SIPP), providing a comprehensive solution for investors.

Great customer service is another key benefit of this platform, with users praising its helpful and supportive staff. This is especially important for those who are new to investing or need guidance.

Here are some of the key pros of this platform at a glance:

Interactive Investor has its downsides, and one major con is the lack of a dedicated mobile app, which can make it difficult to manage your investments on-the-go.

Fees can add up quickly, especially if you're not careful with your investments, and Interactive Investor's fees are no exception, with some investors reporting high costs.

The platform's customer service has been criticized for being slow to respond and not always helpful, which can be frustrating for investors who need assistance.

Interactive Investor's customer service is not available 24/7, which can be a problem if you need help outside of regular business hours.

Interactive Investor's pros and cons are worth exploring. The platform is user-friendly and easy to use, making it a great option for those new to investing.

One of the standout features of Interactive Investor is its transparent pricing. This means you know exactly what you're paying for, which is a big plus in my book.

On the other hand, the platform's charting tools are only basic, which might be a drawback for more advanced investors.

Interactive Investor's customer support is great, but it's not available 24/7, and there's no live chat option. However, the support team is responsive and helpful.

A key benefit of Interactive Investor is that it offers free regular investments, which can be a big help for those looking to start investing regularly.

Here are the pros and cons of Interactive Investor in a nutshell:

Overall, Interactive Investor is a solid choice for those looking to invest, especially for those who value transparency and ease of use.

Interactive Investor offers a range of accounts, including trading, ISA, SIPP, and JISA's, all for a single monthly fee.

This flat monthly fee is a great value for larger portfolios, as it means you can save money on fees compared to traditional investment providers.

With Interactive Investor, you can choose from a huge range of investment options, giving you the flexibility to tailor your portfolio to your needs.

Their excellent functionality makes it easy to work with the platform, and helpful people are available if you need assistance.

One of the standout features of Interactive Investor is their discussion forum, which is a great resource for finding information and tips on smaller cap stocks.

Here's a quick breakdown of the benefits of Interactive Investor's flat monthly fee:

As you can see, the flat monthly fee is a great value for larger portfolios, but may not be as beneficial for smaller investments.

Interactive Investor has an impressive track record of customer satisfaction, with a massive score of 4.7 out of 5 on Trustpilot from over 20,000 customers.

Their customer service is widely praised, resolving issues very quickly.

Interactive Investor has an excellent score on Trustpilot, with a massive 4.7 out of 5 rating from over 20,000 customers.

Most reviews mention the awesome customer service, and resolving issues very quickly.

Interactive Investor has been around since 1995 and floated on the London stock exchange in 2000. It's now owned by abrdn with assets under administration of more than £50 billion.

Interactive Investor's fixed account fee is a major advantage, especially for medium and large investors, as it can save them thousands in costs over time. This is a significant difference from other investment platforms that charge a percentage of the funds.

The platform offers a wide range of investments, including ISAs, SIPPs, and share dealing, alongside research and analysis. You'll have access to model portfolios, selected funds, and thematic investments.

Interactive Investor has a massive customer base of 400,000, and their customer service is generally good, with the option to call them directly.

Here are the key pros and cons of Interactive Investor based on expert reviews:

Interactive Investor offers a range of investment options, including pre-selected and pre-packaged ideas and styles, such as Ethical Investing, which allows clients to invest in 140 funds from an ethical perspective.

These funds cover a variety of asset classes, including equities, bonds, money markets, and property.

Account-holders can also trade in international stocks and shares, with the ability to check if a specific stock is available by searching for it on the Interactive Investor website.

Investing internationally with Interactive Investor can be done through one free trade per month, giving users the flexibility to explore global markets.

Interactive Investor offers a range of ethical investing options, with 140 pre-selected funds to choose from.

These funds allow clients to invest in both the UK and abroad from an ethical perspective, giving you a variety of choices to suit your values.

Equity-centric vehicles are available, providing a solid foundation for your investments.

In addition to equities, you can also invest in bond, money market, and property funds, offering a diversified portfolio.

This range of options makes it easier to align your investments with your personal values and goals.

You have a wide range of assets to choose from when investing with Interactive Investor, with over 40,000 investment instruments available.

One of the key benefits of Interactive Investor is the sheer variety of assets you can invest in, giving you the flexibility to diversify your portfolio and pursue different investment goals.

With such a vast selection, you can find the right instruments to suit your risk tolerance, financial goals, and investment horizon.

Interactive Investor's platform allows you to trade in a wide range of assets, giving you the freedom to explore different investment opportunities and manage your portfolio with ease.

Options are a type of trading instrument that can be high-risk, high-reward.

They're part of a broader asset class called derivatives, which means they're derived from other assets.

Options are available for a very wide range of assets, far more than the 16,000 available through AJ Bell, 11,000 at Hargreaves Lansdown, and 3,500 with Bestinvest.

Two notable exceptions to this are Cryptocurrencies and Foreign Exchange, which are not available through this platform.

Cryptocurrencies are considered too risky as an investment, and can result in big profits or big losses.

Interactive Investor's app is one of the best ways to invest on mobile, with loads of research, screeners, and market data at your fingertips.

The app is also safe and secure, as it's regulated by the FCA, giving you peace of mind when making investment decisions.

Interactive Investor offers a fixed fee pricing structure for high volume trading, which is excellent value for serious investors.

The platform is very efficient and user-friendly, making it easy to navigate and find the information you need.

The fees are among the lowest around, making it a compelling choice for those looking to save money on investment costs.

Interactive Investor offers a Junior ISA, which allows you to save up to £9,000 per year tax-free for your kids.

You can open a Junior ISA with Interactive Investor for free, but you'll need to have an ISA or trading account first.

They don't offer a Stocks & Shares Lifetime ISA, and specific ethical ISAs aren't available, but you can still make ethical investment choices.

You can manage your own personal pension with a Self-Invested Personal Pension (SIPP), which offers a huge range of investment options.

By using a SIPP, you'll benefit from a 25% bonus from the government.

If you've paid higher rate (40%) or additional rate (45%) tax, you can get some of that back too, which is a nice perk.

You can save up to £9,000 per year completely tax-free in a Junior ISA for your kids, which they can access when they're 18.

If you open a Junior ISA, you can save money for your kids' future, and it's a great way to teach them about the importance of saving.

You can open a Junior ISA with Interactive Investor, and you'll get the account completely free for each of your kids.

However, you'll need to have an ISA or trading account with them first to open a Junior ISA.

It's worth noting that you can't open a Stocks & Shares Lifetime ISA, but Interactive Investor does offer ethical investment options that you can clearly see.

If you have lots of money to invest, Interactive Investor's GIA is a better option because it offers tax-free allowance beyond the £20,000 per year limit for individual savings accounts.

However, if you only have a small amount of money to invest, a Stocks and Shares ISA might be more suitable, as it allows you to invest up to £20,000 per annum.

The Interactive Investor Stocks and Shares ISA is a government-approved tax-free wrapper that lets you invest in the markets without paying capital gains taxes on trading profits.

This is especially beneficial if you're just starting out with investing, as it allows you to grow your wealth without worrying about taxes.

Investing in a GIA can be beneficial for those with larger investment amounts, but it's essential to consider your individual circumstances and goals before making a decision.

Interactive Investor has recently launched a Managed ISA, allowing customers to hold their investments within a tax-free ISA account managed by their experts. This new product is designed to combine the tax benefits of an ISA with the expertise of Interactive Investor's team.

You can invest up to £20,000 per annum in a stocks and shares ISA, and with no capital gains taxes on trading profits and no tax to pay. This makes it a great option for those looking to grow their wealth over time.

The ii Managed ISA is a new offering from Interactive Investor, which is now owned by ABDN. Interactive Investor is well known for its flat fee no-nonsense approach to trading and investing, which has earned it a loyal and sizeable customer base.

If you're considering switching to Interactive Investor's ISA account, you might be eligible for £100 cash back. This promotion is designed to entice existing ISA investors to make the switch.

Interactive Investor offers a range of tax-efficient investment accounts. You can choose from a General Investment Account (GIA) or other tax-efficient investment accounts.

If you're new to investing, a GIA is a great place to start. It's a straightforward account that allows you to buy and sell investments without any tax complications.

To open an account, you'll need to follow a few simple steps. First, click the Sign-Up button on the Interactive Investor website and create your subscription. Next, select an account type for investment.

You'll then need to provide a few personal details and verify your identity. This is a standard process that helps Interactive Investor comply with regulations. Fund your account using a bank transfer, debit card, or credit card.

Interactive Investor's fees are based on a flat monthly fee, rather than a percentage of your investment. This means the more you invest, the cheaper it gets.

Here are the types of accounts you can open with Interactive Investor:

Interactive Investor offers a huge range of investment options, all handled online through their website and mobile apps.

Interactive Investor's costs are structured in a way that becomes more favourable as you invest more, especially when compared to brokers that charge a platform fee based on a percentage of the value of your investment.

The firm offers four investor plans: Investor Essentials, Investor, Super Investor, and Pension Builder, each with its own unique features and costs. The monthly subscription fees for these plans are £4.99, £9.99, £19.99, and £12.99 respectively.

You can set up regular investing from as little as £25 per month, and as a Super Investor, you'll also be able to participate in monthly seminars and webinars.

Here's a breakdown of what you get for your money with each plan:

Interactive Investor offers four investor plans, each with a monthly subscription fee: Investor Essentials for £4.99, Investor for £9.99, Super Investor for £19.99, and Pension Builder for £12.99.

The plans also come with various features and charges, such as access to a Trading Account and Stocks and Shares ISA. For example, the Investor plan includes a Trading Account, while the Pension Builder plan does not.

The Super Investor plan offers the most comprehensive features, including free monthly trades and participation in monthly seminars and webinars. However, it also comes with a higher monthly subscription fee of £19.99.

You can set up regular investing from as little as £25 per month, and the Super Investor plan offers free regular investing.

Here's a breakdown of the monthly subscription fees and features for each plan:

Inactivity fees are also levied if you have not traded for 12 months and there is less than £2,000 in the account.

Comparing costs with others in the market is a bit tricky, but one thing is clear: Interactive Investor's costs become more favourable as your investment grows.

The more you invest, the more you benefit from Interactive Investor's costs, especially when compared to other brokers that charge a platform fee based on a percentage of your investment's value.

There isn't a straightforward answer to this question, but it's worth noting that Interactive Investor's costs do become more competitive as your investment amount increases.

Investors who have a significant amount invested with Interactive Investor may find their costs to be more favourable compared to other brokers that charge a percentage-based platform fee.

If you're not sold on Interactive Investor, you might want to consider alternative platforms. Hargreaves Lansdown is one option, known for its low fees and wide range of investment products.

Hargreaves Lansdown offers a wide range of investment products, including shares, funds, and ISAs. Its fees are competitive, with a £11.95 annual management charge on its self-select portfolios.

AJ Bell is another alternative worth considering. It offers a range of investment products, including shares, funds, and pensions.

Interactive Investor has a reputation for excellent customer service, with a massive 4.7 out of 5 score on Trustpilot from over 20,000 customers. This is a testament to their commitment to resolving issues quickly and efficiently.

Their customer service is truly awesome, as mentioned by many reviewers on Trustpilot. This is reflected in their quick issue resolution, which sets them apart from other companies in the industry.

Interactive Investor offers various ways to get help with any issues you may have. You can contact the support team via phone between 7:45am and 5:30pm on weekdays for urgent queries.

Their phone support team is known for fast response times, although I don't have personal experience with it. Customers who have used it report quick resolution to their problems.

For less urgent problems, you can send a message to the support team or email them. They also have a wealth of information on their website to help with common queries.

Interactive Investor's customer support has even won awards for its excellence. This is a testament to the company's commitment to helping its customers.

As a new user, it's essential to select the best account types to help you achieve your financial goals, maximising your ISA allowances and taking advantage of tax relief when investing toward your retirement.

Interactive Investor's Quick Start funds are a great option for beginners, offering low-cost investments that cater to different risk profiles and investment goals.

For a more guided approach, consider leveraging Interactive Investor's model portfolios, which provide actively and passively managed income and growth portfolios depending on your investment style and risk tolerance.

Don't be afraid to take advantage of customer support when you need to - it's there to help you avoid making costly mistakes.

Planning for your long-term financial goals is crucial, and avoiding knee-jerk reactions based on short-term market fluctuations can save you a lot of stress in the long run.