Nowadays, investing money is no big deal. But as the number of investing platforms keeps adding up, it has become more onerous for a layperson to decide where to bet. If you are in need of a reliable platform to invest in, you’ve come to the right place. In this Interactive Investor review, we will help you not to sit on the fence anymore and solve all your problems.
So let’s get started with the article and turn the unknown into the known.
What is Interactive Investor?
Interactive Investor is an investing platform famous for its flexibility and reliability. The platform offers subscription-based investment services to its clients. It started its journey in 1995. The tools and research data available on the platform help you make the right investment decisions.
It is the most powerful investment platform in the UK regarding trading options. It allows its users to invest in a wide range of companies. Also, it provides real-time data and information to track the performance of invested money. Financial Conduct Authority regulates the platform. A top-tier regulator like FCA oversees the platform creating a sense of safety.
Another big attraction of the company is its pricing structure. Instead of charging commission-based fees, it offers a monthly fixed fee model. It is a bit expensive for new investors due to budget limitations. You can take advantage of it in the long run as the value of your portfolio increases.
Moreover, Interactive Investor offers in-house recommendations and research about different investment opportunities. It shares information about investment opportunities in the UK and international funds, in the investment trusts and ETFs (Exchange-Traded Funds). Therefore, it is the second-largest investment platform in the Uk, with over 400,000 customers.
Is Interactive Investor Good for Beginners?
Interactive Investor comes with a very beginner-friendly approach. If you’re new to investing, you can start with Quick-start-fund. Experts and established investors have chosen these investment options to make the experience hassle-free for new investors. You can select any of these options according to their risk factor.
Although each fund has associated risk factors attached, remember that these factors are mere numbers with Interactive Investor. There is always a risk with any investment. Model Portfolios are also good choices for beginners. These portfolios help you pick from ready-made options instead of individually picking from random possible options.
How is the fixed fee structure of Interactive Investor not suitable for small investors?
Due to associated risk factors, the fixed subscription-based fee structure is not beneficial for small and new investors. If investors’ budget is limited, there is a possibility that they cannot recover from potential loss in the beginning.
How Does Interactive Investor Work?
The operating mechanism of Interactive Investor is simple. You have different account types available. Choose one account type like ISA (Individual Saving Account), SIPP (Self-Invested Personal Pension), etc. Invest your money after that by connecting to a bank account.
Further, you can also see previous transactions via the ‘Transaction History’ section. You can check all the documents in the ‘Document Section’. Moreover, click on the ‘Research Account’ tab for news and research.
One noticeable feature of Interactive Investor is the creation of a ‘Portfolio’ in the research section. You can make watchlists by selecting investments and shares. Also, it helps to make risk assessments and better project your earnings for a specific investment.
What are Different Trading Account Types at Interactive Investor?
Account types are also a great attraction for investors. Choosing from varying account types gives investors access to various trading options. Also, the platform is famous for holding up to 9 currencies. This feature saves investors from expensive forex fees. This platform is highly beneficial for international trading.
Stocks and Shares ISA
Stocks and shares ISA is a flexible investment starting from £25. Its yearly limit is £20,000, and it is also tax-free. The minimum limit of £25 is meager and affordable compared to other platforms. When the account opens, your subscription plan is at £9.99-a-month. It gives one free monthly trade and complete control over your investments.
SIPP
Self-Invested Personal Pension (SIPP) is the type of account in which you combine all your pensions into one SIPP if you’re planning to retire. You will get generous tax benefits for each contribution. New customers can sign in for SIPP for £12.99 monthly fee. There is also an option for new customers to start Quick-start-fund.
Junior Stocks and Shares ISA
Junior Stocks and Shares ISA, also known as JISA, is an excellent opportunity for those under eighteen. Parents can open an account on their child’s behalf, and their children can access funds when they turn 18. Junior ISA has a maximum yearly limit of £9,000 and a minimum monthly contribution of £25.
Pension Trading Account
For managing SIPP or SSAS (Small Self Administered Scheme) with another pension provider, Interactive Investor offers a Linked Pension Trading Account. You can also invest in property where investment is not possible with a regular SIPP account.
Interactive Fees and Plans
Interactive Investor comes with flat pricing. It further reduces prices to help investors during the critical financial instability worldwide. Different Interactive Investor fees and plans are
| Plan | Charge | Old | New from Sep 1st |
| Investor, Pension builder, Friends & Family | Online trade costs for UK Shares, Funds, ETFs and US Shares | £7.99 | £5.99 |
| Super Investor | Online trade costs for non-US international | £9.99 | £5.99 |
| Investor | Monthly free trade value | £7.99 | £5.99 |
| Any plan receives monthly trades after | Expiry of monthly free trade | 90 days | 31 days |
Pros & Cons
Pros
- Cost-effective for large investments or Portfolios
- It allows one free trade every month
- Clear and flat fee structure
- Offers research and real-time tracking
Cons
- Expensive for small portfolios
- Incur fees on all trades except the first one
- Limited availability of regular investment
Interactive Investor Review: Final Thoughts
Interactive Investor is an excellent choice for beginners as well as big investors. Its beginner-friendly and supportive nature fascinates new investors to contribute actively to managing their funds. Transparent and fixed-price subscription is very lucrative for investors with long-term plans.
With its support of nine currencies, it provides research and data to help investors to make decisions worth taking. So let your money not go to ashes anymore and invest them today with Interactive Investor. Visit our blogs to learn more.