Most UK investment platforms charge fees in one of two ways: a percentage of your portfolio, or a flat annual subscription. Understanding the difference is the single most important step in choosing the right platform.
Percentage fee platforms
Examples: Hargreaves Lansdown, AJ Bell, Vanguard, Fidelity
You pay a percentage of your portfolio each year. The more your portfolio grows, the more you pay.
Pros:
- Low cost when you’re just starting out
- Fees scale proportionally — affordable on small portfolios
- Some have monthly caps for shares/ETFs (HL: £45/year, AJ Bell: £42/year)
Cons:
- Fees grow as your portfolio grows
- Expensive on large portfolios — HL charges £450/year on £100,000
Best for: Investors with portfolios under £30,000–50,000 (especially for funds).
Flat fee platforms
Examples: Interactive Investor, Freetrade
You pay a fixed monthly or annual fee regardless of portfolio size.
Pros:
- Predictable costs
- Outstanding value on larger portfolios
- As your portfolio grows, the fee becomes a smaller percentage
Cons:
- Expensive relative to portfolio size when you’re starting out
- ii charges £143.88/year — that’s 1.44% on a £10,000 portfolio
Best for: Investors with portfolios over £50,000.
Zero fee platforms
Examples: InvestEngine, Trading 212
No platform fee at all. These services make money through other means (currency conversion, premium features).
Pros:
- Truly free for platform costs
- Excellent for cost-conscious investors
Cons:
- Limited investment range (usually ETFs only)
- No funds, investment trusts, or individual bonds
- Less comprehensive research and tools
Best for: Investors happy with a passive ETF-only approach.
The maths
For a £50,000 portfolio investing in funds with monthly trades:
| Platform | Annual fee | Notes |
|---|---|---|
| InvestEngine | £0 | ETFs only |
| Freetrade | £71.88 | Limited range |
| Interactive Investor | £143.88 | Broad range |
| Vanguard | £75 | Vanguard funds only |
| AJ Bell | £125 | Full range |
| Hargreaves Lansdown | £225 | Full range |
Use our fee calculator to see the comparison for your specific portfolio and investment style.
Fee estimates based on published rates as of April 2026. Always verify current fees directly with your provider.