Best Low-Cost Stocks and Shares ISAs for UK Investors in 2026
Over periods of several years, investing typically delivers superior returns compared to holding cash, but selecting the right platform is the crucial first step. According to Boring Money's Online Investing Report, the number of UK adults investing has surged from one in four to one in three since 2020. As this trend grows, investment methods are evolving, with DIY investing becoming increasingly popular. A significant 55 per cent of investors prioritise low annual costs, highlighting a shift away from traditional platforms that charge fees of 0.25-0.45 per cent annually plus commissions.
These fees, though seemingly small, can accumulate substantially over time. For instance, a 0.45 per cent annual fee on a £50,000 lump sum with a 7 per cent annual return could cost nearly £30,000 over 20 years. In response, a new wave of low-cost platforms has emerged, largely eliminating such charges by operating on tighter margins, often profiting from uninvested cash or minimal transaction fees.
Key Factors in Choosing a Platform
When comparing low-cost investing platforms, consider ease of use, reputation, and unique features. There is no one-size-fits-all app, but options like Trading 212, eToro, and FreeTrade cater to different investor needs. Importantly, all offer stocks and shares ISAs, ensuring that earnings from dividends or capital gains remain entirely tax-free.
Top Low-Cost Platforms Reviewed
Trading 212: As the most popular low-cost platform, chosen by 42 per cent of first-time investors in 2025, Trading 212 features Pies—diversified portfolios of shares and ETFs that can be customised or copied. It imposes very few additional fees, with free bank transfers and no commission on trades, though card deposits over £2,000 incur a 0.7 per cent fee. The platform also pays interest on uninvested cash.
eToro: Ideal for learners, eToro offers webinars, podcasts, and social investing features where users can follow or be followed by others, potentially earning from copied strategies. However, it charges a $10 monthly inactivity fee for accounts dormant for 12 months, making it less suitable for passive investors.
Robinhood: Targeted at experienced investors with higher risk tolerance, Robinhood facilitates trading in futures and stock options, though these products carry risks of losses exceeding initial investments. It charges fees per contract and foreign exchange fees for currency conversion, with no account fees or commissions on US stocks.
IG: This platform caters to those with professional experience, offering complex products like spread bets and CFDs alongside standard investments. It involves higher risks and built-in fees, with a 0.7 per cent FX fee, but no commission charges.
FreeTrade: For simplicity, FreeTrade provides commission-free investing in shares, bonds, and funds via ISAs or pensions. Its Basic plan has no monthly fee, but charges a 0.99 per cent FX fee on non-sterling trades and offers limited interest on uninvested cash.
InvestEngine: Focused on low-cost ETFs, InvestEngine allows quick account setup with no annual fee for self-directed investing or a 0.25 per cent fee for managed portfolios, appealing to those seeking straightforward options.
Making Your Investment Decision
Whether you aim for simple ETF investments or advanced trading, there is a low-cost app for nearly every new investor. The low-cost model reduces barriers, allowing you to try platforms with minimal risk. Choose one that makes you comfortable taking the first steps, and remember, you can always open another ISA later. Always be aware that investing carries risks, including potential capital loss, and past performance does not guarantee future results.
