Interactive Investor Review: A Guide to Flat-Fee Investing
An in-depth review of Interactive Investor (ii) in the UK. Explore its flat-fee plans, SIPP & ISA costs, investment choice, pros & cons, and who it's best for.
In a world where most investment platforms charge a percentage of your portfolio, Interactive Investor (ii) stands out with a different approach: a simple, flat monthly subscription fee. For savvy investors, especially those with larger pots, this can lead to significant savings over the long term. But is this model right for everyone?
At Plouta, we're dedicated to helping you make informed financial decisions that align with your journey to financial freedom. This comprehensive review will explore the Interactive Investor platform in detail, breaking down its unique pricing plans, its vast investment choice, and the pros and cons of its flat-fee structure.
What you will learn in this guide: ⤵
About Interactive Investor: Its history and position as a leading UK platform, now part of abrdn.
The Flat-Fee Model Explained: How ii's subscription plans work and who benefits most.
Account & Investment Options: A look at their ISAs, SIPPs, and huge range of tradable assets.
Fees & Charges Uncovered: A detailed breakdown of the subscription plans and trading costs.
Platform & Technology: An assessment of the ii website and mobile app.
Who Interactive Investor is Best For: Identifying the ideal investor for this platform.
About Interactive Investor (ii): A UK Platform Pioneer
Founded in 1995, Interactive Investor is one of the UK's most established online investment platforms. It has built a strong reputation for its transparent, flat-fee pricing and a huge range of investment options, appealing to confident DIY investors. In 2022, ii was acquired by abrdn, one of the UK's largest active asset managers, further cementing its position as a major, well-backed player in the market.
Interactive Investor by the Numbers (Early 2025 Context)
Customers: Serves over 450,000 customers in the UK.
Assets Under Administration (AUA): Manages a significant amount of assets, often cited as the UK's second-largest retail investment platform by AUA.
Market Position: A key competitor to percentage-based platforms like Hargreaves Lansdown and AJ Bell, particularly appealing to investors with larger portfolios.
The Pros: Why Choose Interactive Investor?
Highly Cost-Effective for Larger Portfolios: This is the main advantage. As your portfolio grows, your flat monthly fee stays the same, whereas a percentage-based fee would continue to increase. This can save you thousands over the long term.
Huge Investment Choice: With over 40,000 options, it caters to investors who want the freedom to invest in almost anything, including a wide range of international shares.
Transparent and Simple Pricing: The subscription model is easy to understand. You know exactly what you'll pay each month for the platform service.
Free Regular Investing: A great feature for building wealth systematically without incurring dealing fees on each monthly purchase.
Trading Credits Included: The main "Investor" and "Super Investor" plans include trading credits, which can make a number of trades each month effectively free.
Good for Consolidating Pensions: The "Pension Builder" SIPP plan offers a cost-effective way to hold a large pension pot for a flat fee.
Strong Reputation & High Customer Satisfaction: Generally receives excellent reviews on platforms like Trustpilot (e.g., 4.7/5) for its service and platform.
The Cons: Potential Drawbacks of Interactive Investor
Not Cost-Effective for Small Portfolios: The flat fee is a disadvantage for those starting out. A £4.99 monthly fee on a £2,000 portfolio is equivalent to a very high ~3% annual charge, whereas a 0.25% platform fee would only be £5 for the year.
No Lifetime ISA (LISA): If you are eligible and saving for a first home or retirement, you'll need to look elsewhere for a LISA.
Dealing Fees on Funds: Unlike some platforms that offer free fund dealing, ii charges a trading fee (e.g., £3.99) to buy or sell funds, though this can be covered by your trading credits.
Higher FX Fees: The foreign exchange fee for international trades (up to 1.5%) can be higher than some specialist competitors.
Platform Can Feel Less Beginner-Friendly: While comprehensive, the sheer amount of choice and data can feel less guided than platforms specifically designed for beginners.
Interactive Investor's Subscription Plans & Fees (2025)
ii's model revolves around its subscription plans. Here’s a simplified breakdown:
| Plan Name | Monthly Fee | Best For | Key Features Included |
|---|---|---|---|
| Investor Essentials | £4.99 | Portfolios up to £50,000. |
|
| Investor | £11.99 | Portfolios over £50,000. |
|
| Super Investor | £19.99 | Active traders. |
|
| Pension Builder (SIPP) | £12.99 | Those building or holding a SIPP. |
|
| Combined Plans | e.g., £21.99 | Investors with an ISA/Trading Account and a SIPP. |
|
Trading Costs:
UK & US Shares, ETFs, Funds, Trusts: £3.99 per trade.
Other International Shares: £9.99 per trade (£5.99 on Super Investor).
Regular Investing: Free.
Dividend Reinvestment: £0.99.
Plouta Tip: The tipping point where ii becomes cheaper than a percentage-fee platform is often around the £30,000 - £50,000 portfolio mark, depending on the competitor's fee and your trading activity.
Investment Options & Account Types
Accounts: Stocks and Shares ISA, SIPP, Junior ISA, General Trading Account (including joint accounts), Company Account.
Investments: A massive range including UK and international shares (e.g., from North America, Europe, Asia-Pacific), over 3,000 funds, over 1,000 ETFs, investment trusts, bonds, and gilts. They also offer their own curated lists like the "ii Super 60" for investment ideas and "Quick-start Funds" for beginners.
Platform Technology & User Experience
Website: Comprehensive and powerful. It offers good research tools, market data, news, and portfolio management features.
Mobile App: Available for iOS and Android, the app is highly rated and allows for full functionality, including trading, managing your accounts, and accessing research on the go.
Tools: Includes watchlists, charting tools (in partnership with Morningstar), news feeds, and expert commentary from their in-house team.
Customer Service
UK-Based Support: Known for its professional UK-based customer service team.
Contact Methods: Support is available via secure message and telephone.
Reputation: Consistently scores very highly in customer reviews on sites like Trustpilot, often praised for its helpful and knowledgeable staff.
Who is Interactive Investor Best For?
ii is an excellent choice for:
Investors with Larger Portfolios: Anyone with over £50,000 in investments will likely find the flat-fee model significantly cheaper than percentage-based platforms.
Confident DIY Investors: Those who want the freedom to choose from a vast range of investments and build their own portfolio.
Cost-Conscious SIPP Holders: The "Pension Builder" plan is one of the most cost-effective ways to manage a large pension pot.
Regular Investors: The free regular investing service is a major perk for those looking to drip-feed money into the market.
Families: The "Investor" plan's inclusion of unlimited free Junior ISAs is a standout feature for parents.
It is less suitable for:
Beginners with Small Pots: The monthly fee is expensive for those just starting with a few hundred or thousand pounds.
Investors Needing a Lifetime ISA (LISA): This product is not offered.
Those Wanting a "Hands-Off" Managed Solution: ii is primarily for self-directed investors, although they do offer some model portfolios.
How Interactive Investor Compares (Briefly)
vs. Hargreaves Lansdown / AJ Bell: ii is typically much cheaper for larger portfolios due to its flat fee. HL and AJ Bell charge a percentage for holding funds (uncapped at HL, tiered at AJB) and have higher share dealing fees. However, HL and AJB are often perceived as more beginner-friendly with stronger research/guidance presentation.
vs. Vanguard Investor UK: Vanguard is cheaper for smaller pots invested only in Vanguard funds. Once a portfolio grows large enough (e.g., over £250,000), ii's flat fee can become cheaper than Vanguard's capped £375 fee. ii offers whole-of-market choice, while Vanguard is restricted.
vs. Freetrade / Trading 212: These platforms offer zero-commission trading, which is cheaper for very frequent traders. However, ii offers a more comprehensive service with SIPPs, extensive research, and a different pricing model that can be better for buy-and-hold investors with large portfolios.
Frequently Asked Questions (FAQs) about Interactive Investor
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Yes. Interactive Investor is regulated by the Financial Conduct Authority (FCA). Client money and assets are held separately from the company's own assets in nominee accounts. They are also covered by the Financial Services Compensation Scheme (FSCS), which protects eligible investments up to £85,000 per person if the firm were to fail.
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Yes, ii accepts transfers from other providers, and they do not charge for transfers in. They also frequently run cashback offers for new customers who transfer accounts to them. Always check if your current provider charges exit fees.
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On the "Investor" and "Super Investor" plans, your monthly fee includes free trades. For example, the "Investor" plan (£11.99/month) includes one £3.99 credit. If you make a UK share trade that costs £3.99, this credit is used automatically, making the trade effectively free. Unused credits do not roll over.
Quick Takeaway Points for Interactive Investor
Flat-Fee Model: You pay a fixed monthly subscription, which is highly cost-effective for portfolios over c.£50,000.
Vast Investment Choice: Access to over 40,000 shares, funds, and other investments.
Low Dealing Costs: £3.99 for UK/US trades and free regular investing.
Family-Friendly: The "Investor" plan includes unlimited Junior ISAs for a single fee.
Not for Small Pots: The monthly fee can be expensive for those just starting out.
No Lifetime ISA: A key omission for eligible first-time buyers.
Excellent for Large SIPPs: The "Pension Builder" plan is one of the cheapest ways to run a large SIPP.
Conclusion: The Go-To Platform for Confident, Cost-Conscious Investors
Interactive Investor has carved out a compelling niche in the UK market by offering a fair and transparent flat-fee structure that stands in stark contrast to the percentage-based models of its main rivals. For investors with medium to large portfolios, the cost savings can be substantial over the long run.
This platform is unapologetically built for the confident, self-directed investor who values wide investment choice and low, predictable platform fees over hand-holding and beginner guides. Its free regular investing service and inclusion of Junior ISAs in its main plan make it a powerful tool for systematic wealth building for the whole family.
While it may not be the starting place for those with very small portfolios, once your investments reach a certain size, Interactive Investor becomes an undeniable front-runner. For the cost-conscious, long-term DIY investor, it is one of the best and most comprehensive platforms available in the UK today.
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Disclaimer: This review is for informational purposes only, based on information available as of June 2025, and does not constitute financial advice. Platform fees, features, and product details can change. Always check Interactive Investor's official website for the most up-to-date information before making any investment decisions. The value of investments can go down as well as up, and you may get back less than you invest. Past performance is not a reliable indicator of future results.
