For this comparison, we have outlined the differences in the platform charges below. It’s important to point out that usually, the majority of the costs comes from trading activity.
For the example below, we have assumed a £10,000 portfolio and two trades per month. The reality is, that if you use a percentage based broker such as Vanguard, your fees will vary each month as the value of your portfolio changes.
Furthermore, it’s important to recognise the differences in each platform.
Interactive Investor, for example, is a fixed fee broker. This means that your fees will stay the same each month regardless of portfolio size. This usually suits investors with larger sums.
On the other hand, Hargreaves Lansdown does charge an annual fee of 0.45% but not on ETFs.
So, as InvestEngine only offers ETFs, we felt this was the fairest comparison. If you purchased non-ETF funds, then you would have to pay 0.45% per annum of the value of these.
Finally, while the Vanguard Investor platform has one of the lowest costs, it only offers Vanguard funds and doesn’t have a mobile app.