The UK’s Best DIY ISA Provider: Freetrade Tops Recent Poll

Government data shows that 13 million adults in the UK had an ISA in 2020.

That’s 1.2 million more cash ISAs than 2018 and 300,000 more stocks and shares accounts. This uptick in ISA customers can be attributed, in at least some way, to an increase in the number of providers. Digital technology has made ISAs more accessible than ever, and the Investors’ Chronicle recently named its list of leading platforms. The top-rated companies all scored highly in a range of categories as voted for by readers of Investors’ Chronicle and the Financial Times.

Freetrade offers a cost-effective premium product

Freetrade was named as the top overall ISA platform, finishing ahead of iWeb and AJ Bell Youinvest with an average overall score of 4.4/5. Freetrade, along with IG, had the top score in the software and accessibility category. This is thanks to its user-friendly mobile app. Customers can install the iOS trading app or Android trading app and make deposits, investments, and hand all their other account actions with a few swipes and taps. Part of the reason for a score of 4.6 is the “quick features” such as one-touch charts that provide instant overviews of your portfolio.

Freetrade was also named best stocks and shares ISA provider thanks to high scores in relation to investment options and value for money. Indeed, the FreeTrade stocks and shares

ISA has a monthly account fee of £3, which is lower than other UK providers, including Interactive Investor which charges £9.99 a month. Freetrade also offers fractional shares and commission-free trades, which means users can make tax-efficient investments, even if they have a small budget. Readers of Investors’ Chronicle and the Financial Times gave Freetrade scores of 4.9 and 4.2 for value and range of investments, respectively. Also scoring highly with regards to value for money was iWeb, while established brand Barclays was down at the bottom of the rankings with a score of 3.6.

Freetrade leads a new generation of ISA apps

The ISA market has evolved in recent years thanks to online and mobile platforms such as Freetrade. Giving customers, particularly those new to the stock market, affordable investment conditions has made a difference. This was demonstrated by multiple surveys showing that people are often hesitant to use stocks and shares ISAs because they don’t have any financial knowledge. In fact, a study by the Institute for Public Policy Research (IPPR) concluded that people with low-to-middle incomes want simple products that pay “easily understandable” rewards.

A major reason for Freetrade’s success is the fact it demystifies savings and investments. Users still need to use its library of training guides to learn the basics. However, the product itself is easy to use and provides simple overviews of what’s possible and how much your investments are worth. That’s all most people want. Outside of professional investors, the average person just wants an easy-to-manage ISA that allows them to make investments sheltered from capital gains tax. Freetrade is leading a new generation of providers that meet these demands. This, in turn, is helping to increase the number of Brits subscribing to ISAs.