Interactive Investor UK platform review: what are the pros and cons?

Interactive Investor (ii) is one of the UK's leading investment platforms, known for its flat-fee pricing model and extensive range of investment options.

Whether you're a seasoned investor or just starting out, understanding the platform's features, fees, and services is crucial.

Our comprehensive review below delves into the pros and cons of Interactive Investor, helping you make an informed decision.

Interactive Investor: who are they? 

Founded in 1995, Interactive Investor is a UK-based online investment service.

As of 2022, it became a subsidiary of Abrdn (formerly Standard Life Aberdeen).

Headquartered in Manchester, ii serves over 450,000 customers, making it the UK's second-largest retail investment platform .

The platform is authorised and regulated by the Financial Conduct Authority (FCA).

Interactive Investor

UK-based online investment service

Founded

1995

Assets under management (AUM)

£85 billion

Fees

Fees start at £4.99 a month

Services

• Self-managed accounts

• Managed portfolios

• Quick-start funds

• Investment pathways

• Educational resources

Pros

• Flat-fee pricing model

• Wide range of investment options

• Free regular investing

• User-friendly platform

• Strong security measures

• UK-based customer support

Cons

• Not cost effective for small portfolios

• No fractional shares

• Limited customisation

• Higher fees for large trades

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What does Interactive Investor do?

Interactive Investor offers a comprehensive online platform for self-directed investors.

Users can manage a variety of investment accounts, including:

• General investment accounts

• Stocks and shares ISAs

• Self-invested personal pensions (SIPPs)

• Junior ISAs

• Joint Accounts 

The platform provides access to a wide range of investment options, including UK and international shares, funds, ETFs, investment trusts, bonds, and gilts.

Additionally, ii offers tools and resources to help investors make informed decisions, such as market analysis, investment filters, and ready-made portfolios.

What are the pros and cons of Interactive Investor?

Considering Interactive Investor as your financial provider?

Here are the main advantages and disadvantages to keep in mind:

The pros of Interactive Investor

• Flat-fee pricing model: Unlike percentage-based fees, ii charges a fixed monthly fee, which can be cost-effective for investors with larger portfolios.

• Wide range of investment options: Access to over 40,000 UK and global stocks, funds, ETFs, and more.

• Free regular investing: No additional charges for setting up regular monthly investments.

• User-friendly platform: The web trading platform is intuitive and easy to navigate.

• Strong security measures: Includes two-factor authentication and 128-bit SSL encryption.

• UK-based customer support: Award-winning customer service team available for assistance.

The cons of Interactive Investor

• Not cost effective for small portfolios: The flat-fee model may be expensive for investors with smaller portfolios.

• No fractional shares: Investors cannot purchase fractional shares, limiting access to high-priced stocks.

• Limited customisation: The platform lacks advanced customisation options for experienced traders.

• Higher fees for large trades: Trades over £100,000 incur higher fees, which may affect high-volume traders.

What services does Interactive Investor offer?

Interactive Investor provides a range of services tailored to different investment needs: 

• Self-managed accounts: For investors who prefer to make their own investment decisions.

• Managed portfolios: Professionally managed portfolios aligned with various risk levels.

• Quick-start funds: Ready-made portfolios for beginners, including options like Vanguard LifeStrategy funds.

• Investment pathways: Designed for those entering pension drawdown, offering four straightforward investment options.

• Educational resources: Access to articles, webinars, and market analysis to support informed investing.

What fees does Interactive Investor charge?

Here's an overview of Interactive Investor's fees and charging structures:

• Monthly fees: £4.99 for the Investor Essentials plan (invest up to £50,000), £11.99 for Investor plan (no limit).

• Trading fees: £3.99 for UK & US shares, funds, ETFs, bonds and gilts, other international shares from £5.99.

• Additional fees: £49 for telephone trades, foreign exchange fees from 1.5%.

Our expert says: Why you should look beyond financial adviser fees

"It can be daunting paying for financial advice, but it should add more value than it costs – and benefit you in the long term.

For example, optimising your pension strategy so you have a fund with lower fees and a track record of strong performance could pay dividends when you retire, although there are no guarantees.

There are other benefits as many people who received financial advice have a clearer understanding of their money goals, more confidence in retirement planning and experience lower financial stress.” 

Lisa-Marie Voneshen, Senior Content Writer

Interactive Investor pension review: is it right for your retirement savings?

Interactive Investor's main pension product is their self-invested personal pension (SIPP).

Key strengths of an Interactive Investor pension

• Flat-fee structure: Because their charging model is flat rather than percentage-based, your annual cost doesn’t rise in proportion to the size of your pension pot.

• Wide investment choice: You can invest in thousands of funds, ETFs, UK and international shares, bonds, trusts, and more, ii claims that its SIPP offers one of the largest ranges in the UK market.

• Integration with the broader ii platform: You get access to the same research tools, trading interface, mobile app, and educational content as with other ii accounts.

Potential drawbacks of an Interactive Investor pension

• Less cost-efficient for small pension pots: The flat monthly fee creates a higher relative cost burden when your pension balance is modest. Investors just starting out might find lower-cost alternatives more competitive.

• Trading fees and fund dealing costs: While the platform aims to reduce costs, there are still charges on executing trades (e.g. for funds and trades).

• Pension drawdown complexity: Some user reports suggest challenges or delays when trying to access benefits or perform drawdown, particularly around administrative or system issues.

Interactive Investor pension verdict

If you're an investor with a medium to large pension pot, comfortable managing your own portfolio choices, and seeking predictability in costs as your pension grows, the ii SIPP is a good option, particularly because of its flat-fee structure and wide investment universe.

However, for someone early in their retirement saving journey with a smaller pot, or for those who prefer passive or zero-dealing platforms, the flat fee could be a barrier.

What technology does Interactive Investor use?

Interactive Investor offers a robust and user-friendly platform accessible via web and mobile apps. The mobile app provides features such as:

• Biometric login: Face recognition and fingerprint scanning for secure access.

• Real time market data: Access to live pricing and market analysis.

• Portfolio management: Monitor and manage investments on the go.

• Educational content: Access to articles, videos, and investment insights.

The platform also supports regular updates and enhancements to improve user experience and functionality. 

Interactive Investor security: is it secure?

Security is a top priority for Interactive Investor. The platform employs several measures to protect user data and investments:

• Two-factor authentication (2FA): Adds an extra layer of security by requiring a one-time code sent to your registered mobile device.

• 128-bit SSL encryption: Ensures secure data transmission between your device and the platform.

• Biometric authentication: Face recognition and fingerprint scanning available on the mobile app.

• FCA regulation: Authorised and regulated by the Financial Conduct Authority.

• FSCS protection: Customer assets are protected up to £85,000 under the Financial Services Compensation Scheme.

Does Interactive Investor have good customer service?

Interactive Investor is known for its UK-based customer support team, which has received positive feedback for its responsiveness and professionalism.

The platform offers multiple channels for customer support, including secure messaging through your account and telephone support.

Call centre hours are from 7:45am to 5:30pm, Monday to Friday, with extended hours for international trading calls.

Customer reviews on Trustpilot rate Interactive Investor at 4.7 out of 5 stars, indicating a high level of customer satisfaction.

One 5 star review said:

Final verdict: is Interactive Investor right for you?

Interactive Investor is one of the UK’s strongest choices for investors who value control, transparency, and predictable costs.

Its flat-fee pricing model makes it particularly appealing for those with larger portfolios or multiple investment accounts, as charges don’t rise in proportion to your balance.

The platform’s extensive investment range, including shares, funds, ETFs, investment trusts and SIPPs, also makes it a flexible option for experienced investors who want access to a broad range of markets.

However, new or smaller investors may find the monthly flat fees less cost-effective, especially if they’re still building their portfolio or prefer a more hands-off approach.

Similarly, the lack of fractional shares and limited customisation tools may not suit those seeking the latest trading features or advanced personalisation.

Overall, Interactive Investor is best suited to confident, self-directed investors who prioritise fee transparency, robust investment choice, and strong customer service.

If you’re just starting out or prefer a more guided approach, however, you might benefit from exploring platforms with lower entry costs or automated investment options.

What are the best alternatives to Interactive Investor?

When searching for alternatives to Interactive Investor, UK investors will find many platforms that cater to different needs.

To identify the best options, we’ve considered factors like fee structure, investment selection, account types, user experience, and additional features.

Here’s a breakdown of the alternatives:

Get expert financial advice

Interactive Investor offers a comprehensive platform suitable for a wide range of investors, particularly those with larger portfolios who can benefit from its flat-fee structure.

With a vast selection of investment options, robust security measures, and strong customer support, it stands out as a competitive choice as an investment platform.

However, investing always carries risks, and it's essential to ensure that your investment choices align with your financial goals and risk tolerance.

If you're uncertain about making investment decisions on your own, seeking advice from a qualified financial adviser can provide personalised guidance tailored to your individual circumstances.