Interactive Investor

 

Interactive Investor was simply a white label for Halifax Share Dealing until it launched its own platform at the end of 2011. The international dealing service now covers a number of major US and European stocks that can be held through CREST, the UK’s securities clearing and settlement system. As with a number of UK brokers, foreign stocks are not traded directly on the overseas exchanges, but through Winterflood Securities, a major UK market maker.

The II service was popular with cost-conscious investors due to a straightforward fee structure with few charges other than trading commissions. However, charges were overhauled in the run-up to the retail distribution review and the firm now imposes a £20 quarter account fee – this is offset against trading commissions (and so includes two “free” regular trades). This is per individual rather than per account, so an investor holding a trading account and an ISA will only pay once – and accounts held by family members can be linked together to be covered by the same fee.

Investors can only hold and settle in GBP, meaning that every international trade has to be converted to sterling. Interactive Investor charges a 1% commission on currency conversion. With FX charges creeping up in recent years, this is towards the lower end of typical charges among many UK brokers, but is more expensive than the typically 0.25-0.5% cost through cheaper firms such as iDealing that simply pass on the market maker’s charges.

Markets available
Online tradingBelgium, Canada, France, Germany, Ireland, Italy, Netherlands, Portugal, UK, USA
Telephone tradingBelgium, Canada, France, Germany, Ireland, Italy, Netherlands, Portugal, UK, USA
Dealing commissions and charges
Typical online£10
Online details1-10 deals per month £10, 11+ deals per month £5
Typical telephoneAs above
Telephone detailsAs above
Other fees and charges
Account fees and inactivity fees£20 per quarter account fee, which is offset against trading commissions
Custody charges for stocksNone
Dividend chargesNone
Corporate action chargesNone
Currencies
Currency conversion charges1% margin
Hold cash in foreign currenciesNo
Currencies allowedGBP
Other details
Tax-advantaged accountsISA (covered by standard account fee), SIPP (additional administration fee of £80+VAT per year)
Other products and servicesCFDs, funds, FX, spreadbetting
Minimum account sizeNone
Company locationUK
Further informationVisit the Interactive Investor website

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 Posted by at 1:54 pm