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Interactive Investor to cut dealing charges by 25%

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01/08/2022
Interactive Investor will reduce the standard online dealing charge from £7.99 to £5.99 from September. But customers who get free trades each month will see the expiry date cut.

The subscription-based investment platform confirmed it will cut the dealing costs for its 400,000 customers from 1 September.

The move will mean it “will compare even more favourably” with competitors, such as Hargreaves Lansdown, AJ Bell YouInvest and Fidelity when it comes to trading UK and US shares, ETFs and investment trusts.

Here’s what’s happening next month:

The charge for UK and US trades using II’s Standard Investor Plan and its Pension Builder Self-Invested Personal Pension (SIPP) will be cut from £7.99 to £5.99. It will also apply to members of II’s Friends and Family service, who benefit from a free II subscription.

Customers in II’s Investor and Super Investor service plans will continue to get their first trades free each month. However, from 1 September the expiry date on the free monthly trades will be cut from 90 days to 31 days. Free monthly, regular investing across all of II’s plans remain unchanged for funds, ETFs, investment trusts and popular UK shares.

Customers in II’s Super Investor service plan will see a 40% cut in the cost of online trades in non-US international shares from £9.99 to £5.99 per trade. This follows price reductions in February 2022, when II reduced US trading costs from £4.99 to £3.99.

The table below compares the prices across II and leading competitors:

‘Just got even better’

Richard Wilson, CEO of Interactive Investor, said: “We work constantly to bring better value, choice and service to the UK retail investor. And with our standard trading charge now reduced to £5.99, our great value simple fixed fee subscription service just got even better.

“Our trading charges remain proudly impartial, with no preferential treatment for shares, funds, investment trusts or ETFs so the right choice is always what is right for the customer.

“Investors can’t control the markets, inflation or interest rates. But they can control their investment costs – and over the long run the savings can be huge.”

In June II confirmed it would pay interest on cash balances and in May, active investment and wealth management firm Abrdn completed its £1.49bn buyout of II which held approximately £59bn in assets under administration. It continues to operate as a standalone business and an independent brand.

II completed its acquisition of TD Direct Investing in 2017, Alliance Trust Savings in 2019, and Share plc in 2020. Its latest acquisition was the EQi book of customers in 2021.

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