Interactive Investor has become the latest investment platform to pull support for amateur investment clubs, sparking frustration among long-time members who view these groups as more than just a means to buy and sell shares.
Investment clubs, where friends, colleagues, or community groups pool money to invest collectively, have been a fixture of the UK investing landscape for decades. For many, they are as much about camaraderie as capital: social gatherings where investment strategies sit alongside life stories and shared experiences. But in recent years, major retail platforms have been reluctant to host club accounts, citing administrative and compliance burdens.
Not all is doom and gloom, however. While Interactive Investor is shutting down investor club accounts, other firms are actively welcoming investment clubs. Interactive Brokers can provide investment club accounts for displaced groups, ensuring continuity for those unwilling to wind down their activities. And perhaps more significantly, Interactive Brokers (IBKR) is positioning itself as the natural next step for clubs seeking a modern, cost-effective home.
In a recent podcast, Gerry Perez, CEO of Interactive Brokers UK, described IBKR as the “Swiss Army knife” of investment clubs. The broker offers dedicated small business accounts suitable for unincorporated groups, providing global market access, low fees, and advanced trading tools. Crucially, there are no custody or account maintenance charges, with trading commissions starting at just £3 per UK share trade.
“An investment club is like a group of friends pooling their resources,” Perez explained. “At IBKR, we make it simple, efficient, and collaborative. Our platform empowers clubs with everything from AI-driven analytics to educational resources, so members can learn together as they invest.”
IBKR’s offer is more than just cheap trading. Each club member can also open their own Stocks & Shares ISA, SIPP, or general investment account alongside the collective pot, meaning individuals retain personal investment flexibility while enjoying the social aspect of a club. For many, that combination could prove attractive, particularly as other UK platforms pull back from the space.
The contrast could not be starker: Interactive Investor has chosen to walk away from an activity steeped in investing tradition, while Interactive Brokers is betting on its revival, embracing both the communal and educational value of clubs.
With over 2,000 estimated investment clubs still active across the UK, the market is far from dead. Instead, it may be about to enter a new chapter, one powered not by old-fashioned kitchen-table ledgers, but by global platforms and digital collaboration.
For those displaced by Interactive Investor, the message is clear: while one door closes, another, potentially much bigger, is opening.
Afterall, opinion, as they say is what makes a market…
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
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