Which is the best low-cost stocks and shares ISA to start investing?

Since 2020, the number of people investing in the UK has risen from one in four adults to one in three, according to Boring Money’s Online Investing Report.

And as the number of people investing grows, the way they invest is changing.

While some first-timers are still drawn to large, trusted brands with ready-made portfolios, DIY investing is a more popular option than ever, and 55 per cent of investors say that what matters most is low annual costs.

Most big-name or legacy investing platforms charge an annual fee of around 0.25-0.45 per cent – plus a commission each time you buy or sell an investment.

While this might not sound like much, a 0.45 per cent annual fee would cost you nearly £30,000 over 20 years, assuming you invested £50,000 as a lump sum and made a return of 7 per cent per year.

A new wave of low-cost platforms has largely eliminated both these fees. They operate on much tighter margins, sometimes profiting from uninvested cash held on the platform and small fees on certain transaction types.

Which are the best low-cost investing platforms?

Besides cost, some of the factors you might consider when comparing platforms are ease of use, reputation, and unique features.

There’s no one best app for everyone, but you might find one of the following suits you. All the below are low-cost or no-fee but may suit different types of investors.

Importantly, all offer a stocks and shares ISA which means when you invest, your earnings – dividend payouts or capital gains from share price improvements – will be entirely tax-free.

Trading 212

By far the most popular low-cost investing platform, Trading 212 was chosen by close to half (42 per cent) of first-time investors in 2025, according to Boring Money.

One of their unique features is Pies: diversified portfolios of shares and ETFs that can be ready-made, designed yourself, or copied from other investors.

Trading 212 has very few additional fees, but note that deposits by card carry a 0.7 per cent fee after your first £2,000, while deposits by bank transfer are free at any level.

It pays interest on uninvested cash and there are no commission fees on buys and sells.

eToro

With webinars, podcasts, and online courses, eToro is a popular option for those keen to learn and refine their approach.

Through its social investing features, you can follow more experienced investors, or be followed, earning money if people copy your strategy.

It’s not an ideal choice for people who want to “set and forget”, as there’s an inactivity fee of $10 a month (£7.50) for accounts with no logins in the last 12 months.

Robinhood

Investors with more experience and a higher risk tolerance might choose Robinhood, a platform that makes it easy to start trading futures and stock options. Bear in mind that these products aren’t suitable for everyone and – unlike shares and funds – you can lose more than you originally invested. They are not recommended for those starting out.

Robinhood charges a fee on each contract ($0.50 for stock options, $0.75 for futures), and you’ll need to exchange your money into US dollars to trade, incurring a foreign exchange (FX) fee.

There’s no account fee and no commission on trading US stocks – buying UK shares is not currently available but is an expected addition this year.

IG

As well as straightforward investments, IG offers complex products including spread bets and contracts for difference (CFDs). If you already have some knowledge of these or professional experience, you might be able to put the abundance of information, charts and tools in the IG trading app to good use.

Note that these trades involve more fees – which are built into the price – than straightforward investments in shares and funds, and carry significantly more risk, including the risk of losing more money than you initially invested.

IG don’t charge commission fees but FX fees are 0.7 per cent. And, as a FTSE-100 firm, is itself an example of a company you can buy shares in too in any ISA.

FreeTrade

If some of the platforms above offer far more complexity than you need, FreeTrade simply offers commission-free investing in shares, bonds, and funds, through an ISA, pension, or general investment account.

While the Basic plan has no monthly fee, you’ll pay an unusually high 0.99 per cent FX fee on non-sterling trades and only earn 1 per cent interest on up to £1,000 of uninvested cash.

Higher monthly fees make the other plans less suitable for most low-cost investors.

InvestEngine

InvestEngine is another straightforward option, targeted at people looking to invest in low-cost ETFs through an ISA or pension.

You can open your account and start investing in just a few clicks, without having to make a lot of complex decisions along the way.

If you’re comfortable choosing your own funds, you can do this with no annual fee. There is also an option to pay 0.25 per cent for a managed portfolio, if you decide you’d prefer some expert involvement.

Making your decision

Whether you’re looking for the simplest way to get some of your money into ETFs or hoping to work up to a near-professional level, there’s a low-cost app for almost any type of new investor.

An advantage of the low-cost model is that you don’t have much to lose by choosing a platform and trying it out.

Whichever makes you feel most comfortable taking the first few steps is a great place to start – and there’s nothing stopping you opening another ISA later on either.

When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.