With so many stocks and shares ISA options out there, knowing what to look for is a great way to narrow down your choice and minimise confusion. To help you choose yours, here are the five qualities I look for in a stocks and shares ISA.
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1. Low annual fees
Long-term investors tend to hold investment accounts for years, which means that a low annual fee is certainly a bonus. The annual fee is the amount that it will cost you to use the platform each year.
I try to look for platforms that offer relatively low costs as well as good value for the money. The platform should include extra features, tools and resources within the annual price. The iWeb Stocks and Shares ISA has no annual fee and instead charges just a single £100 opening fee! The platform also offers access to a range of educational resources, making it excellent value for money.
Choosing a platform with low annual fees will reduce the overhead costs of holding your ISA account. As well as this, the lower the fees, the higher your profits will be!
2. Access to ready-made portfolios
A good way to invest for the long-term is to invest in a ready-made portfolio that has been built with long-term investing in mind. Investment portfolios are groups of assets that investors can put money into. As a result, the confusion of choosing between the thousands of stocks that are available is taken away. Instead, powerful algorithms are used to determine the best stocks for you!
Ready-made portfolios are excellent for long-term traders as the portfolio can be adjusted over time to keep up with the changing market. As well as this, many ready-made portfolios also use a long-term investing strategy.
The Charles Stanely Direct Stocks and Shares ISA offers a great range of ready-made funds.
3. Low fund custody charges
One cost that often catches long-term investors off-guard is a fund custody charge. Fund custody charges are fees charged by some brokers for holding stocks in your account.
If you’re investing for the long term, funds may be an appealing option to you, so it is a good idea to find a broker that offers low custody fees. In fact, a number of brokers offer zero fund custody fees. These are ideal for long-term investors who wish to add funds into their ISA portfolio.
4. High ratings and a good track record
If you’re planning to hold your investments for a long time, you will want to use a broker that is trustworthy. Trustworthy brokers are those that are rated highly by existing investors and have been on the market for years, with a good track record.
Investing with a reputable broker will minimise your chances of losing your investments to a company that could go bust. As well as this, having a good track record suggests that a broker has been consistently good over time. This is naturally reassuring for those who are in it for the long run!
The Interactive Investor Stocks and Shares ISA has been given a solid five-star rating by our team, making it a reliable option for your investments.
5. Excellent customer service
As a long-term investor, I value customer service and a good user experience. I personally lean towards ISAs that offer a great range of helpful tools and advice. I also look for clear helplines in case I ever need to contact the broker directly.
The aim of long-term investing is to build up a portfolio over time. This means that you will be dealing with the customer service provided by your broker for years to come. Therefore, it can be reassuring to know that the platform you invest with is always there to help! Choose a broker that prioritises customer service and offers the help that you need.
In a nutshell
Long-term ISA investors should look for platforms that will provide the tools and resources that they need to make long-term decisions. Low fees and excellent customer service will save you from running into challenges in the long run. As well as this, the ability to invest in ready-made funds can help you to build a strong long-term portfolio.
Always remember that investing in a stocks and shares ISA carries a level of risk. Take your time to research different platforms and make educated decisions.
Don’t leave it until the last minute: get your ISA sorted now!
If you’re looking to invest in shares, ETFs or funds, then opening a Stocks and Shares ISA could be a great choice. Shelter up to £20,000 this tax year from the Taxman, there’s no UK income tax or capital gains to pay any potential profits.
Our Motley Fool experts have reviewed and ranked some of the top Stocks and Shares ISAs available, to help you pick.
Investments involve various risks, and you may get back less than you put in. Tax benefits depend on individual circumstances and tax rules, which could change.
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About the author
Ruby is a freelance writer who enjoys writing about all things personal finance. After embarking on her own side hustle journey three years ago, Ruby is passionate about helping others to learn about the ins and outs of persona… Read More
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