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15th
Jun 2020
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FTSE 100 Tracker ISAs: Cheapest Way To Invest £20000

FTSE 100 Tracker ISAs: Cheapest Way To Invest £20000

We look at the 4 largest platform providers and compare what the annual charges would be on a £20,000 investment into an ISA in a leading FTSE 100 Tracker fund.

Investing In A FTSE 100 Tracker Fund ISA

If you are looking to invest the maximum current ISA allowance of £20,000 into a FTSE 100 tracker fund using an independent investment platform then it is worth comparing the total annual platform admin charge adding on the fund ongoing charges figure (OCF).

We have selected 4 of the UK's largest and most popular platforms. Taking a low cost tracker fund such as the Vanguard FTSE 100 UCITS ETF which has a low 0.09% ongoing charge based on a £20,000 investment you can see the difference in the total annual charge you will pay for each platform.

AJ Bell come out top, Fidelity second, HL third and Interactive Investor who operate a flat fee platform come out the most expensive.

Investment Platform Annual Platform Fee Vanguard FTSE 100 UCITS ETF Ongoing Fund Charge Annual Charge on £20,000


Fidelity
£45 up to £7,500 a year or 0.35% if you have a monthly regular saving plan of £50 or more.
£7,500 – £250k: 0.35%
£250k – £1m: 0.2%
£1m +: free



0.09%


£88

Hargreaves Lansdown
£0 – £250k: 0.45%
£250k – £1m: 0.25%
£1m – £2m: 0.10%
Over £2m: FREE


0.09%

£108
Interactive Investor
Investor Plan: £9.99 per month
Funds Fan Plan: £13.99 per month
Super Investor Plan: £19.99 per month

0.09% £137.88

AJ Bell
£0 – £250k: 0.25%
£250k – £1m: 0.1%
£1m – £2m: 0.05%
Over £2m: FREE

0.09%

£68

The tiered charging structures of each platform mean that depending on your longer term objectives what may be the cheapest now may not be the cheapest in the future.

E.g. Assuming the ISA allowance was £20,000 for the next 5 years, and you put in this contribution every year and your fund was worth £125,000 by this time then applying the same charging structure above Interactive Investor with their flat fee structure would be the cheapest option.

All platforms make ISA transfer relatively straightforward so in the future if you wish to move to another provider this is an option open to you.

Investment Fund Supermarket ISAs

Stocks & Shares ISA

from Fidelity

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2,000+ Funds
  • Invest From: £50pm

Why we like it: Invest from as little as £50 a month or with a £1,000 lump sum. Investment choice from over 100 fund providers, giving you access to 2,000+ funds. One low-cost service fee of 0.35%*. Great service – from investment guidance on website through to UK-based phones team. PathFinder, Select 50, Investment Finder - investing tools for beginners to advanced investors. 24/7 access via online Account Management system.

* depending on how much you have invested

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Vantage Stocks & Shares ISA

from Hargreaves Lansdown

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2,500+ Funds
  • Invest From: £25 pm

Why we like it: Shelter up to £20,000 this tax year with the low cost, award-winning ISA. The UK's number 1 platform for private investors. 

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Investment Fund ISA

from AJ Bell

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2000+ Funds
  • Invest From: £25 pm

Why we like it: It is simple to invest in a fund online. You will need to open an account first and then choose the fund you are interested in investing in. There are over 2,000 funds to choose from but to make it easier for you AJ Bell have created their favourite funds list which is their pick of the best funds. 

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Interative Investor Stocks & Shares ISA

from Interactive Investor

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 40,000+ UK and global investments
  • Invest From: £25 pm or £100 single

Why we like it: An award-winning ISA that gives you complete control. The second largest platform in the UK with the widest choice of investment options in the market including funds, investment trusts, ETF’s and more. Open online in less than 10 minutes. Access to expert independent ideas and analysis. Low cost fees and trading.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

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