Investment platforms explained: how to choose and what fees to watch
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Quick answer: An investment platform holds your ISA or pension and lets you buy funds and shares. The right one depends on your pot size: percentage-fee platforms suit smaller pots, while flat-fee platforms become cheaper once you hold tens of thousands.
A Stocks & Shares ISA or SIPP needs a 'platform' (sometimes called a fund supermarket or investment account) to hold it. Platforms differ mainly on charges and on whether they suit funds or shares — and over decades, fees are one of the few things you can actually control.
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Read the full investing & ISAs guide →Primary source: www.gov.uk/consumer-protection-rights
Percentage vs flat fees
Percentage-fee platforms charge a share of your pot each year — cheap when you are starting out, but the cost rises automatically as your investments grow. Flat-fee platforms charge a fixed amount regardless of pot size, which becomes better value once your holdings reach roughly £30,000–£80,000 depending on the provider.
Also check dealing charges: some platforms charge per trade for shares but offer free regular fund investing. If you buy and hold a few funds, dealing fees matter less than the annual platform fee.
What else to check
Confirm the platform offers the account you want (ISA, SIPP or general account), the investments you want (funds, shares, ETFs, investment trusts), and that it is FCA-authorised so your money is FSCS-protected.
Fees compound: paying 1.5% a year instead of 0.5% on a long-term pot can cost you a large share of your eventual returns, so keep total costs low and avoid trading frequently.
Common questions
Is my money safe on an investment platform?
Your investments are held separately ('ring-fenced') from the platform's own money, and FSCS covers up to £85,000 if an FCA-authorised platform fails. Market falls are a separate, normal investment risk and are not covered.
Can I move my ISA to a cheaper platform?
Yes. You can transfer a Stocks & Shares ISA between platforms without losing its tax-free status — always use the platform's transfer process rather than withdrawing the money.