Interactive Investor

Overview

Interactive Investor has quietly revolutionized how UK investors think about platform fees. While traditional brokers like Hargreaves Lansdown extract a percentage of your wealth year after year, ii pioneered something radical: a Netflix-style flat fee that doesn’t grow with your success.

Since 1995, this London-based platform has grown to serve over 400,000 customers and manage more than £50 billion in assets, making it the UK’s second-largest investment platform. But size isn’t what makes ii special—it’s their disruptive pricing model that breaks the traditional link between portfolio value and platform costs.

Consider this: with a £200,000 fund portfolio, you’d pay Hargreaves Lansdown £900 annually (0.45% of your wealth), while ii charges just £144 per year regardless of your portfolio size. That’s a staggering £756 annual saving that compounds over time. ii has essentially created a Netflix for investing—pay a flat monthly fee, enjoy unlimited access.

The Flat-Fee Revolution: Why It Changes Everything

Interactive Investor’s flat-fee model represents a fundamental shift in how investment platforms operate. Instead of penalizing success with ever-increasing percentage fees, ii charges the same monthly amount whether you have £10,000 or £1 million invested.

The Mathematics of Freedom: Traditional percentage-fee brokers create a perverse incentive—they benefit more as your portfolio grows, regardless of the value they provide. ii flips this script entirely. Their fixed monthly fee means every pound of investment growth stays in your pocket, not the platform’s.

Unlimited Trading Without Fear: When every trade costs extra, you second-guess yourself. Should I rebalance? Should I take profits? ii removes this friction entirely. With unlimited trades included, you can invest with conviction, rebalance regularly, and respond to market opportunities without calculating transaction costs.

Global Access, Local Service: 40,000+ investments across 17 international exchanges, comprehensive Morningstar research, and award-winning UK-based customer support—all included in your monthly fee. No hidden costs, no nasty surprises, just transparent pricing that lets you focus on investing.

Trading Platforms

ii Website

Professional investment platform featuring:

• Unlimited commission-free trading
• Advanced charting and technical analysis
• Comprehensive research and market data
• Portfolio management tools
• Real-time prices across global markets

ii Mobile App

Full-featured mobile trading app offering:

• Complete trading functionality
• Portfolio monitoring and alerts
• Market news and analysis
• Secure biometric authentication
• Watch lists and price alerts

The Cost Revolution: Real Numbers, Real Savings

Interactive Investor’s pricing structure is designed around one principle: predictable costs that don’t punish success. Here’s how their revolutionary flat-fee model works in practice:

Monthly Service Plans That Scale With Your Needs

Investor Plan (£11.99/month): The foundation of ii’s offering. For £144 annually, you get unlimited trading across all asset classes, access to global markets, and comprehensive research. No ISA charges, no hidden fees, no percentage-based wealth extraction.

Super Investor Plan (£19.99/month): Everything in the Investor plan plus SIPP access and priority support for £240 annually. Consider this: even with a modest £100,000 portfolio, Hargreaves Lansdown would charge £450 annually—nearly double ii’s premium tier.

The Break-Even Mathematics

Here’s where ii’s model becomes compelling:

• £30,000 portfolio: ii costs £144/year vs. HL’s £135/year (HL slightly cheaper)
• £50,000 portfolio: ii costs £144/year vs. HL’s £225/year (ii saves £81 annually)
• £100,000 portfolio: ii costs £144/year vs. HL’s £450/year (ii saves £306 annually)
• £200,000 portfolio: ii costs £144/year vs. HL’s £900/year (ii saves £756 annually)

The magic number: If you have more than £32,000 to invest, ii becomes cheaper than percentage-fee brokers. Above £50,000, the savings become substantial and compound annually.

What’s Included vs. What Costs Extra

Included in Your Monthly Fee:

• Unlimited UK and international share trading
• Unlimited fund and ETF transactions
• Investment trust dealing
• Regular investing (minimum £25/month)
• Real-time market data
• Comprehensive research and analysis

Additional Costs (minimal and transparent):

• Currency conversion: 1.5% (competitive rate)
• Telephone trading: £20 per trade (most never need this)

Account Types

Stocks & Shares ISA

• £20,000 annual allowance
• No additional annual charge
• Tax-free growth and income
• Unlimited trading included

SIPP (Self-Invested Personal Pension)

• Available with Super Investor plan
• No additional annual charge
• Comprehensive investment options
• Drawdown facilities available

General Investment Account

• No contribution limits
• Same unlimited trading benefits
• Taxable gains and income

Regulation and Security

• Authorized and regulated by the FCA
• FSCS protection up to £85,000 per person
• Client money segregated in ring-fenced accounts
• Award-winning customer service and security

Pros and Cons

Pros

• Unlimited trading makes it cost-effective for active investors
• Excellent value for larger portfolios
• Comprehensive global market access
• Award-winning customer service
• Strong research and educational resources
• No surprises with transparent flat-fee pricing
• Advanced portfolio management tools

Cons

• Monthly fee may not suit infrequent traders
• Higher costs for small portfolios or occasional investors
• Limited cryptocurrency options
• No CFD or forex trading
• Currency conversion fees apply
• Minimum £500 deposit requirement

Recent Innovations: Staying Ahead of the Curve

Interactive Investor hasn’t rested on their flat-fee disruption. Recent developments demonstrate continued innovation:

Managed ISA Launch (2024): Recognizing that not all investors want to select individual investments, ii launched 10 professionally curated portfolios. This bridges the gap between DIY investing and expensive wealth management, all within their flat-fee structure.

Technology Enhancements: The platform now offers biometric authentication, two-factor security, and an improved mobile app experience. While competitors focus on flashy features, ii concentrates on security and reliability—the foundations serious investors need.

Cash Interest Program: As of September 2024, ii pays competitive interest on uninvested cash across multiple currencies, ensuring your money works even while between investments.

Award-Winning Service: Their 4.7/5 Trustpilot rating and UK-based customer support team represent something increasingly rare—human expertise when you need it, included in your flat fee rather than charged separately.

Who Benefits Most From ii’s Revolution?

Interactive Investor’s flat-fee model creates distinct winners and scenarios where it shines:

The Serious Accumulator (£50,000+ portfolios): If you’re building wealth systematically, ii’s fixed costs mean more of your money compounds. A £100,000 portfolio holder saves £306 annually compared to percentage-fee platforms—money that can compound over decades.

The Active Rebalancer: Love tweaking your portfolio allocation? Concerned about market conditions? With unlimited trades, you can rebalance monthly, take profits, or respond to opportunities without calculating transaction costs. This psychological freedom often leads to better investment decisions.

The Global Investor: Access to 17 international exchanges with unlimited trading makes ii perfect for those wanting global diversification. Build a portfolio spanning US tech stocks, European value plays, and emerging market funds—all without transaction fees.

The Income-Focused Investor: Dividend collectors and income seekers benefit enormously. You can harvest dividends, reinvest proceeds, and switch between income investments without eroding returns through transaction costs.

The Cost-Conscious Sophisticate: If you understand that fees are the enemy of compound returns, ii’s transparent pricing eliminates the wealth tax that percentage-fee brokers impose. Every basis point matters over time.

Not Ideal For: Casual investors with small portfolios (under £30,000) or those making fewer than 3-4 trades annually might find percentage-fee platforms more economical initially. However, as portfolios grow, ii becomes increasingly attractive.

The Bottom Line: A Platform Built for Wealth Building

Interactive Investor represents more than just another investment platform—it’s a philosophical statement about how investing should work. By breaking the link between portfolio value and platform costs, ii has created something rare: an investment platform that doesn’t penalize success.

The mathematics are compelling. The £32,000 break-even point means ii becomes cheaper than percentage-fee platforms for most serious investors. But the real value lies in behavioral changes—when trading is free, you invest with more conviction, rebalance more effectively, and respond to opportunities more decisively.

The Award Recognition: ii’s 2024 win as “Best Fund Platform” at the Good Money Guide Awards wasn’t just recognition of features—it acknowledged that flat-fee pricing fundamentally changes the investing experience for fund investors.

The Network Effect: As more serious investors recognize the mathematical advantage of flat fees, ii continues growing (400,000+ customers managing £50+ billion). This growth enables continued platform investment and competitive pricing.

For investors with £50,000+ portfolios who understand that fees compound negatively over time, ii offers something powerful: predictable costs, unlimited access, and the freedom to invest without second-guessing transaction expenses. It’s not just a platform—it’s a statement that your wealth growth shouldn’t be constrained by someone else’s percentage take.

In an industry built on extracting percentages of wealth, Interactive Investor chose disruption. For serious investors, that disruption translates directly into compound returns that stay in their portfolios, not the platform’s revenue stream.

Investment Warning: The value of investments can go down as well as up, so you may get back less than you invest. Past performance is not a guide to future performance.