The U.K has some competitive pricing platforms. Although, would argue that the U.S has better platforms with IBKR and this can be more suited to professional investors. The U.K does have some good investment platforms for the average investor for SIPPs or pension contributions which I will cover in this article.
This article aims to cover some of the top pension platforms in a number of different sectors and will give a brief over of the costs.
Note, this is my own view and have not based this purely on cost and have incorporated other factors such as safety and stability on service of the platforms as well.
Best Overall Platform
AJ Bell
I have written in a number of articles as being one of the best SIPP providers. AJ Bell is one of the biggest online investment platforms in the U.K. Having thousands of investments available, that are more than feasible for the average investor with stocks, ETFs, and funds. Also, with the option of setting up your own portfolio.
AJ Bell SIPP option starts at 0.25%, not the cheapest but for me one of the best options.
Aviva
One of the U.K largest pension funds and like all the platforms listed has a large number of funds, stocks, and ETFs. Charges for the platform and SIPP options. Aviva has only fund fees associated with the platform that is capped at 1% and the ability to move money freely between funds.
Hargreaves Lansdown
The largest platform in the U.K and one of the best online systems with an array of research, stocks, and funds including its famous and (controversial) top fund picks.
Hargreaves Lansdown offers you options to build your pension with a pre-made portfolio, by selecting a variety of options from the pre-made portfolios.
However, you can create your own portfolio for competent investors.
The annual fee is 0.45% which does reduce for larger amounts. Also, Hargreave Lansdown can offer financial advice from their advisers.
Cost-Effective SIPP Options
Freetrade
Is becoming one of the fastest pension-providing platforms. Freetrade offers a Freetrade pension where your investments are put into a tax wrapper for a monthly fee of £9.99. You also have the option of adding Freetrade plus to the pension account for an extra £7.
Trades on Freetrade are commission free.
Interactive Investor
Offering more than 40,000 Investments.
II also offers simple ways to start investing. Quick-start Funds are a simple way to get started investing where you can pick from six low-cost funds created by the team of experts at Interactive Investor. Having a platform fee of just ₤12.99 and a free trade each month.
Robo Advisors
MoneyFarm
Moneyfarm will offer a number of flexible options for drawing income from your pension once you reach retirement age, which is currently 55 (57 as of 2028). There is no additional cost for this, which is known as a pension drawdown.
Depending on the size of your portfolio, Moneyfarm assesses an annual account management fee starting at 0.75% and decreasing to 0.35%. The average annual investment fee is 0.2%, and the market spread has an annual impact of about 0.09%.
MoneyFarm also offers target-based retirement options that can decrease the risk as you get older.
Nutmeg
Nutmeg is another provider that offers simple portfolio management to invest is 0.75% for the first £100,000 and 0.35% beyond that for the full service the same price is similar to Nutmeg smart Alpha fund with the fund cost of 0.2%-0.14%
Fixed Allocation has a fee of 0.45% up to £100,000 and 0.2% beyond that. With funds cost of 0.2%
Best for Sophisticated Investors
Saxo Markets
This is a global platform that can allow investing in markets from all over the world in 50+ global markets. and 11,000+ International stocks. It also has managed a portfolio costing 0.95%. All registered users of Saxo Markets have access to a personal account manager, and opening a SIPP with them is free.
Different transaction costs are divided into trading tiers at Saxo Markets. You can upgrade your tier to receive lower transaction fees if you intend to trade in large volumes. The most expensive trading tier, known as the Classic, charges 0.10% (a minimum of £8) for UK stocks and US$0.02 (a minimum of US$10) for US stocks per deal. There are extra costs.
Best Overall SIPP
Vanguard
A well-known name which is known for its cost-effective fees. Offering its own funds of 75 ETFs and active funds with cost averaging around 0.15%. It also has target-based retirement funds for those looking for a hands-off option and just wanting to leave their pension fund until retirement.
Vanguard fees start at 0.15% with a cap of £375.
If you have any questions, please email me at info@investmentsforexpats.com. As an expat you aren’t likely to have these options available to you and will have to consider platforms outside of the UK.
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