Compare stocks and shares ISAs

Investment ISAs allow you to invest in the stock market without paying tax on any profits. They are less secure than cash ISAs, so you need to make sure you understand the risks before investing.

  • Earn tax-free returns
  • Buy into different types of investment products
  • Invest in valuable companies, such as Apple and Microsoft

Compare stocks and shares ISAs from leading providers

Our data experts check each company before we add them to our comparisons, so you can be sure that you only see results from genuine firms.

Wealthify
Hargreaves Lansdown
Moneyfarm
True Potential
Wesleyan Bank Limited
BMO
AJ Bell Youinvest
Shepherds Friendly Society
Scottish Friendly
Interactive Investor

How to find a stocks and shares ISA

1

Identify what kind of investor you are

Your level of investing experience is a major factor when deciding what kind of funds to buy when setting up an investment ISA. Ready-made options can help if you're a beginner.

2

Choose the kind of funds you want

If you know how you want to invest your money, then a self-select ISA might be a good option. If not, an investment fund might be more suitable.

3

Pick a stocks and shares ISA provider

Choose an investment ISA provider that offers you the best features for achieving your investment goals with the lowest costs. Make sure to watch out for fees.

Stocks and shares ISA deals

Investment ISAs put your capital at risk, and you may get back less than you originally invested.

10 results found, sorted by affiliated products. How we order our comparisons. Commission earned affects the table's sort order.
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Wesleyan With Profits Stocks and Shares ISA
Invest from
£1,000 lump sum or £50 a month
You can invest in
1 fund
Wesleyan With Profits Stocks and Shares ISA
Wesleyan has been looking after the financial interests of members since 1841 and the With Profits fund is managed by its award-winning investment team. Review your investment online and get service from the UK-based customer support team.
Capital at risk.
Eligibility
Permanent UK Resident
Minimum Initial Deposit£1,000
Minimum Monthly Investment£50
Minimum Lump Sum Stocks & Shares ISA Investment£1,000
Hargreaves Lansdown Stocks and Shares ISA
Invest from
£100 lump sum or £25 a month
You can invest in
Over 3,000 funds
Hargreaves Lansdown Stocks and Shares ISA
Kickstart your investing with an award-winning ISA. Choose your own investments with expert research and ideas to help you, or simply pick a ready-made portfolio. Manage via website, app or phone.
Capital at risk.
Eligibility
Permanent UK Resident
Minimum Initial Deposit£100
Minimum Monthly Investment£25
Minimum Lump Sum Stocks & Shares ISA Investment£100
Best Digital ISA - Boring Money Awards (2021)
Moneyfarm Stocks & Shares ISA
Invest from
£500 lump sum or £1 a month
You can invest in
14 funds
Moneyfarm Stocks & Shares ISA
Get cost efficient investment advice on a fully managed ISA portfolio. The Moneyfarm ISA is simple, transparent, tax efficient and you can transfer for free.
Annual charges range from 0.35%-0.75%. No entry, exit or transfer fees. Capital at risk.
Eligibility
Permanent UK Resident
Minimum Initial Deposit£500
Minimum Monthly Investment£1
Minimum Lump Sum Stocks & Shares ISA Investment£500
Scottish Friendly My Choice (ISA)
Invest from
£100 lump sum or £10 a month
You can invest in
10 funds
Scottish Friendly My Choice (ISA)
Manage your ISA online with flexibility; increase, decrease, pause & restart payments. Invest from £10 p/m & get a gift worth up to £45. With over 150 years of experience & a UK based team, Scottish Friendly welcome all investors.
Capital at risk. ISA & Gift rules apply.
Eligibility
Permanent UK Resident
Minimum Initial Deposit£100
Minimum Monthly Investment£10
Minimum Lump Sum Stocks & Shares ISA Investment£100
BMO Stocks & Shares ISA
Invest from
£100 lump sum or £25 a month
You can invest in
10 funds
BMO Stocks & Shares ISA
Serving customers for over 200 years. Invest for your future with a BMO Stocks and Shares ISA and join over 12 million customers worldwide. BMO's 10 Investment Trusts enable you to invest in a specific region or globally.
Capital at risk.
Eligibility
Permanent UK Resident
Minimum Initial Deposit£500
Minimum Monthly Investment£25
Minimum Lump Sum Stocks & Shares ISA Investment£100
Shepherds Friendly Society Shepherds Stocks and Shares ISA
Invest from
£100 lump sum or £30 a month
You can invest in
1 fund
Shepherds Friendly Society Shepherds Stocks and Shares ISA
Shepherds Friendly Society Stocks & Shares ISA offers growth potential by aiming to pay you an annual bonus. You could also opt to invest into a fund that only invests in environmentally and socially sustainable companies. Capital at risk.
Eligibility
Permanent UK Resident
Minimum Initial Deposit£100
Minimum Monthly Investment£30
Minimum Lump Sum Stocks & Shares ISA Investment£100
Wealthify Investment ISA
Invest from
£1 lump sum or £1 a month
You can invest in
5 funds
Wealthify Investment ISA
Award-winning Stocks and Shares ISA. Investing with Wealthify is simple - choose what type of investor you want to be, from cautious to adventurous, and Wealthify can build you an investment Plan and manage it for you.
Wealthify also offer Ethical Plans, so you can easily invest in line with your values. Digital Wealth Management Provider of the Year at the Moneyfacts Consumer Awards 2022. Capital at risk.
Eligibility
Permanent UK Resident
Minimum Initial Deposit£1
Minimum Monthly Investment£1
Minimum Lump Sum Stocks & Shares ISA Investment£1
stocks shares

What is a stocks and shares ISA?

A stocks and shares ISA is a tax-efficient way of trading in shares, funds, investment trusts and bonds. It is also known as an investment ISA.

Thanks to the annual ISA allowance of £20,000, any returns you earn are free of tax. This means that you don't need to pay dividend, capital gains, or income tax on any profits you make from the investments held within a stocks and shares ISA.

You can either use your entire ISA allowance for a stocks and shares ISA, or you can split it between different types of ISAs.

If you have long-term savings goals, a stocks and shares ISA might offer you a better investment than, say, a cash ISA.

stocks shares

What is a stocks and shares ISA?

A stocks and shares ISA is a tax-efficient way of trading in shares, funds, investment trusts and bonds. It is also known as an investment ISA.

Thanks to the annual ISA allowance of £20,000, any returns you earn are free of tax. This means that you don't need to pay dividend, capital gains, or income tax on any profits you make from the investments held within a stocks and shares ISA.

You can either use your entire ISA allowance for a stocks and shares ISA, or you can split it between different types of ISAs.

If you have long-term savings goals, a stocks and shares ISA might offer you a better investment than, say, a cash ISA.

How much money can I put into an investment ISA?

You can put £20,000 into an ISA each year, providing you reside in the UK and are over the age of 18. This is known as the annual ISA allowance and it is reviewed each year by the government. For the 2022/23 tax year - which runs from 6 April 2022 until 5 April 2023 - the annual ISA allowance remains unchanged at £20,000 per person.

You can only pay into a single investment ISA per tax year, but you can open a new one each year.

A stocks and shares ISA should be considered as a longer-term investment. So don't put money in it that you might need for emergencies or regular use.

It's possible to set up monthly investments from £20 a month, or a lump sum amount starting from £100.

What types of investments can you invest in with a stocks and shares ISA?

Stocks or shares 

Shares are essentially slices of ownership in a given company. The value of a share is calculated by dividing the total market value of the company by the number of shares. The value of each share can vary depending on how the company performs and other external economic factors.

Investment funds 

These are 'collective' investments which pool your money with other investors. A fund manager uses that money to buy and sell a wide range of investments on your behalf, in order to achieve a fund’s objective. These investments can include shares in companies, real estate, or government bonds.

Investment trusts 

These are publicly listed companies that invest in financial assets or the shares of other companies on behalf of their investors. When you invest you are buying shares in an investment trust, the value of which fluctuates based on the underlying value of the assets they own and the supply and demand for their shares.

Open Ended Investment Companies 

OEICs are professionally managed collective investment schemes that pool your money with other investors. They are structured to invest in stocks and other securities. The company's shares list on the London Stock Exchange (LSE) and the price of the shares are based largely on the underlying assets of the fund. 

Unit trusts

These work by pooling your money with other investors into a single fund, which is managed by a fund manager. The fund manager then uses the unit trust fund to invest in asset classes through a variety of securities. Trustees are assigned to ensure that the fund manager follows the fund’s investment goals and objectives.

Exchange traded funds

Exchange Traded Funds (ETF) are a type of security that track an index, sector, commodity, or other asset, which can be purchased or sold on a stock exchange just like a regular stock. An ETF is called an 'exchange traded' fund because it's traded on an exchange just like stocks are. The price of an ETF’s shares can fluctuate throughout the trading day.

Which stocks and shares trading platform is best for me?

Finding the best stocks and shares ISA for you, will start with finding the right platform for you. This will depend on how you want to manage your portfolio, and how much involvement you want in choosing the individual investments. Below we’ve explained the differences between DIY platforms, and those that are more geared towards first-time investors.

Do-it-yourself platforms

These are trading platforms which allow you to pick where you invest, and for how long. These are best for experienced investors who know what they're doing. You'll need to:

  • Do your own research

  • Picking your own investments

  • Manage your portfolio yourself.

Do-it-for-me platforms

With these platforms, everything is taken care of for you and are typically used by first-time or inexperienced investors. These platforms will pick your investments based on:

  • How much you want to invest

  • How much your willing to risk

  • The kinds of investments you prefer

How much does a stocks and shares ISA cost?

Investing isn't free, but the idea is that whatever costs you incur to invest will be outweighed by the returns. This is why it's important to watch out for charges, because they can eat into your investment returns.

Some of the costs that you should be aware of include:

Transaction fee

This is charged every time you buy or sell a share on a platform. If you're a frequent trader, then you'll want to find a platform with the lowest fee possible. If you're long term investor, then it won't matter as much.

Trading Platform charge

Not only does the trading platform help you execute your transactions, many also provide you with insight and analysis to help you make investing decisions, all of which isn't free. The platform fee can be flat fee or percentage value of the amount of money you invest. Typically, the more you invest, the more you'll have to pay in fees.

Fund manager charge

When you have stocks and shares ISA, the fund manager who manages the investments within your ISA charges a fee. Typically, this is a small percentage of the amount of money you have invested in a fund.

Transfer fee

If you decide to change trading platforms, you'll likely have to pay a transfer fee. This is usually charged on a per fund bases, so if you have more than one fund in your stocks & shares ISA, you'll be charged for each one.

Are there any specialist stocks and shares ISAs?

Yes. You, when you're thinking of getting a stocks & shares ISA, you could look into the following options:

Pros and cons of stocks and shares ISAs

There are lots of reasons why you might like to get a stock and shares ISA. But there are downsides too:

  • The return on your investment could be a lot higher than what you could earn from interest on a cash ISA
  • Because you invest using your ISA allowance, any stocks and shares ISA returns you make are free from income tax
  • You can invest in several markets
  • You could lose all or some of your money if the funds you invest in don't perform well
  • You will likely need to invest your money over a significant period of time to see returns
  • Your money can go up and down, which might be stressful

Are stocks and shares ISAs covered by the Financial Services Compensation Scheme (FSCS)?

Yes, most ISAs, including stocks and shares ISAs are covered by the FSCS up to £85,000 per person, per institution¹. These means that in the unfortunate event that your ISA provider or fund manager were to go bust, you'd be covered up to that amount.

However, this does not mean that you are protected if the investments in your stocks and shares ISA were to lose value from fluctuations in the stock market.

This is why it's important to be careful with unregulated investments, as they may not be covered by the FSCS.

Do you have to pay tax on earnings from stocks and shares ISA?

ISAs fall under the category of what are called 'tax wrappers'. This means that any money deposited in an ISA is sheltered from being taxed, whether it's:

Capital Gains Tax 

​​Capital Gains Tax (CGT)  is a tax on the profit you make when you sell something that’s increased in value. You’re required to pay Capital Gains Tax (CGT) when you make a gain from selling assets such as shares, a second home, and other items such as paintings, antiques or jewellery.

Everyone has an annual CGT allowance, which stands at £12,300 for the 2021/22 tax year ending in April. If you are trading stocks and shares in the open market, you’ll pay tax on any gains you make above this threshold. If you're a basic rate taxpayer, you'd pay a CGT rate of 10%. If you are a higher or additional rate taxpayer you'd CGT of 28%.

However, any gains made by investments held within a stocks and shares ISA are not subject to CGT. This means that any profits you earn, including any above the £12,300 threshold, are tax free.

Finally, another benefit of stocks and shares ISAs is that, should you need to fill in a tax return, there is no need to declare profits on it. In fact, you don’t need to mention the fact that you have any ISAs.

Dividend Tax

Share dividends are income payments made to investors based on the profits a company earns. 

As an investor, you have an annual dividend tax allowance of £2,000. Any dividends that exceed your dividend allowance would have dividend tax deducted based on the tax band you fall into.

For basic rate taxpayers, the dividend tax rate is applied at 7.5%, and 32.5% and 38.1% for higher and additional-rate taxpayers, respectively. 

However, when investments are held in stocks and shares ISAs you avoid the need to pay tax on dividends altogether. 

tax-free-isa
Salman Haqqiquotation mark
Although returns on investment ISAs are never guaranteed, they're a great way to earn tax-efficient returns on your investment. But always think about how much you are prepared to lose before you choose the ISA for you.
Salman Haqqi, Personal Finance Editor

Are ISAs the best way to maximise your savings interest?

We're only days away from the end of the tax year, so you may be considering an ISA to maximise the interest on your savings. However, saving money in an ISA is no longer the only way to earn tax-free interest.

The personal savings allowance lets you earn a set amount of money each tax year before you have to pay tax on your earnings, including your savings interest.

In the 2021/22 tax year, the personal savings allowance lets you earn up to ...

  • £1,000 for basic-rate tax payers

  • £500 for higher-rate payers

This means that you will only pay tax on savings interest if the amount of interest you earn exceeds your starting rate for savings (if you earn under £17,500), your personal savings allowance, and if your total income exceeds your personal allowance (£12,570 in the 2021/22 tax year).

For most savers, the interest you earn will therefore not be taxed. You could save your money in whichever account that offers you the best deal without having to worry about paying tax on your earnings.

However, if you're likely to exceed your personal savings allowance, then an ISA can still be a great way of maximising the money you earn in interest.

There's still time to learn more about those unanswered questions, with our guide on, how stocks and share ISAs work.

Alternatives to stocks and shares ISAs

Cash ISA

A cash ISA is a good option for those who want to have access to their money, should they ever need to withdraw money. You can open a cash ISA with as little as £1.

Liftime ISA

A Lifetime ISA (LISA) let you save up to £4,000 a year in it that be used to purchase your first home or when you retire. The government adds a cash bonus of up to £1,000 a year on top. But it can only be opened by people aged between 18 and 39.

Junior ISA

You can open a Junior ISA for your child under the age of 18. A Junior ISA can be an efficient way of saving because tax isn’t paid on the returns. This means when your child turns 18, their Junior ISA won't be liable for income tax and capital gains tax deductions.

Type of ISAAccess to fundsTax benefits
Cash ISAYesEarn tax free interest on savings
Lifetime ISANo - Only when buying first property or when 60 or over Get an £1,000 from the government on £4,000 in savings
Junior ISANo - Only when the child turns 18Save up to £9,000 for the tax year

Our top tips on stocks and shares ISAs ...

Make the most of your tax-free ISA allowance before 5th April 2022.

  • Invest your money for at least five years to ride though ups and downs in the market. If you think you'll need access to that money sooner, then a stocks and shares ISA may be not be a good option.

  • Invest money regularly to maximise your long term returns. Even investing small sums regularly can add up over time.

  • Don't panic if the market takes a dip. Ups and downs are expected in the stock market. If you're investing for the long term, a momentary dip is unlikely to hurt you.

Stocks and shares ISA FAQs

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Why compare stocks and shares ISAs with money.co.uk?

Comparing investment ISA accounts could save you money. Our multiple award-winning comparison service makes sure you get the lowest fees and rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.

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¹According to the FSCS website

Last updated: 17 May 2022