Yes, a SIPP with IG costs £205 per year. There is also a custody fee of £24 a month, which reduces to £0 if you trade more than 3 times per quarter. There is zero commission on US share trades, and just £3 on UK share trades when you trade three or more times a month. Standard dealing fees are £8 for UK and £10 for US shares. Smart Portfolio fees are 0.5% – capped at £250 per year. Fund management charges are 0.13% and transaction costs are 0.09%.
IG’s SIPP account lets you invest in over 13,000 UK and US shares, funds and investment trusts. Or if you can buy into an IG Smart Portfolios are expertly managed, broadly diversified portfolios with exposure to many global markets, such as fixed income and equity, along with alternative investments like gold and property.
IG reintroduced their SIPP account after withdrawing its previous SIPP product market in October 2020 as they could not find a suitable administrative partner.
However, they now partnered with Options UK, which is an independent pension administrator and professional trustee company. That is based in the UK, and who have been in business for twenty years, according to the firm’s website, and administers £1.70 billion of clients’ funds.
SIPPs or self-invested personal pensions allow the pension owners to invest for and trade within their pension, making their own investment decisions, instead of leaving that to a specialist fund manager and are a tax-effective wrapper for long-term investing and saving for retirement.
What can IG SIPP clients be able to trade?
IG SIPP clients will be able to invest in a wide range of individual stocks, ETFs, and investment trusts, as well as placings and IPOs, through IG’s relationship with Primary Bid. IG Smart Portfolios are also available to its SIPP Customers.
To start investing in a SIPP through IG you will first need to open an IG share dealing or Smart Portfolio account, and then add a SIPP account, using the MY IG dashboard. You can then set up your SIPP with Options UK, from whom you will receive an email invite. Options UK will let IG know when the SIPP is set up and they will activate it.
Can you transfer an existing SIPP into IG?
Yes. Alternatively, you can transfer an existing SIPP to Options UK from any UK-registered pension scheme, or, recognised overseas pension scheme.
IG SIPP clients can invest up to £40,000 in the current tax year (under existing legislation) and they will pay zero commission on US stock trades, and just £3.0 per trade on UK trades, if, they have traded at least three times, in the previous month. Options UK charges £210.00 per annum as a SIPP management fee.
Related guide: How to start a private pension
How big is the UK SIPP market?
There are thought to be as many as 800,000 SIPPs in the UK, with the average SIPP thought to contain £70k to £80k of investments and cash.
The market is forecast to grow by as much as 20 to 30% per annum, according to research published earlier this year, by pension consultants Intelligent Partnerships.
How does IG’s SIPP compare to Interactive Brokers and Saxo Markets?
Many of IG’s competitors offer SIPP trading facilities, for example, Interactive Brokers has its own SIPP trading account, which allows investors to trade in stocks, bonds, funds and ETFs, in 150 markets, spread across 33 different countries. Interactive Brokers offers its customary low commissions to its SIPP customers.
However, its SIPP account also has some additional perks, such as interest on uninvested cash balances, fractional share trading, and a stock yield enhancement program. Under which, qualifying SIPP holders can elect to lend the shares held in their SIPP on the stock loan market, via Interactive brokers, and they will receive 50% of the fees generated by way of return.
It’s also possible to trade derivatives such as futures, options, and currencies within the Interactive Brokers SIPP.
Saxo Markets also has its own SIPP account, however, the bank does not act as a pension administrator or trustee. Rather it facilitates the trading of securities within a SIPP, that is managed and administered elsewhere.
Opening a SIPP account at Saxo is free of charge and Saxo supports two SIPP providers, to whom clients can transfer their SIPPs.
Saxo’s charging structure is tiered, so you pay a commission thats applicable to either the Classic, Platinum or VIP tiers, depending on your activity levels.
Clients in the classic tier pay 2 cents per share commission on US equity trades, and 0.10% of the consideration on UK and European equity deals. Whilst VIP clients pay 1 cent per share on US trades, and just 0.05% on UK and European equity deals.
However, not every trading platform offers SIPP trading, for example, SIPP trading is not available at eToro or CMC Markets, though the recently launched CMC Invest platform will be introducing SIPP trading in the near future.
- Further reading: see our top picks for the best SIPP providers in the UK
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.
Richard’s contributions and expertise have been recognized by respected publications such as BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
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