interactive launches budget account for novice investors

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The UK’s second largest investment platform, interactive investor (ii), now owned by investment giant abrdn, has introduced yet another pricing tier to their already sizeable range of account types to suit different types of investors. In a bid to boost their appeal to new investors (who don’t experience the benefit of interactive investor’s fixed price fees like people with larger portfolios), interactive has launched Investor Essentials, a low-cost, stripped-down account for people investing up to £30,000.

Costing just £4.99 per month, it’s half the price of their most popular price plan. However, once your portfolio exceeds £30,000 you automatically move to the higher fee. This helps to address interactive investor’s Achilles’ heel — their fixed fee model benefits larger portfolios but is relatively expensive for smaller investors compared to services that charge a percentage fee.

However, it’s not all roses. People signing up to Investor Essentials don’t receive the free trades that some of their accounts offer, and consumers will have to pay £5.99 to buy or sell funds, investment trusts and shares. There’s also no Junior ISA or Sipp.

If you’re planning on doing a lot of trading, then you should check whether this account is right for you. Remember Compare+Invest is the place to do that.

Generally, this is a positive development by interactive investor and should be applauded if it encourages more people to start their investment journey.

Find out more about interactive investor here. Visit the interactive investor site by clicking here.

Photo by Jean-Philippe Delberghe on unsplash.com