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Richard Berry
- September 26, 2023
In this guide we have ranked some of the best accounts for buying index funds in the UK. Index Funds track underlying markets and provide investors with a low-cost way to invest in a larger group of shares in one trade. You can use our comparison of what we think are the best accounts for buying and selling index funds by dealing commission and ongoing account costs.
Best Index Fund Brokers
| Index Fund Broker | Index Fund Account Fee | Dealing Commission | Our Rating | More Info |
|---|---|---|---|---|
 | £0 | £0 | See Offer Capital at risk |
|
 | £9.99 pm | £5.99 | See Offer Capital at risk |
|
 | £0 | £11.95 | See Offer Capital at risk |
|
 | 0.25% | £9.95 | See Offer Capital at risk |
|
 | 0.4% | £4.95 | See Offer Capital at risk |
|
 | £24 pq | £8 | See Offer Capital at risk |
|
 | £0 | 0.10% | See Offer Capital at risk |
|
 | £0 | 0.05% | See Offer Capital at risk |
❓ Methodology: We have chosen what we think are the best index fund accounts based on:
- over 17,000 votes in our annual awards
- our own experiences testing the open-ended investment fund accounts with real money
- an in-depth comparison of the features that make them stand out compared to alternative open-ended investment fund accounts.
- interviews with the open-ended investment fund account CEOs and senior management
Hargreaves Lansdown: Excellent index fund research and analysis
Hargreaves Lansdown Index Fund Investing Review
Name: Hargreaves Lansdown Index Fund Investing
Description: To make index fund investing easy Hargreaves Lansdown analysts have selected a number of index funds from across the major sectors for the Wealth Shortlist.
Capital at risk.
Summary
A good choice for those who want to include index funds as part of their overall portfolio. However, it can get expensive for large index fund portfolios.
Fees: *There is no charge for buying and selling funds. Fund accounts are charged at 0.45% for the first £250,000. Then 0.25% up to £1m, 0.1% up to £2m. There is no charge above £2m.
Pros
- £1 minimum deposit
- Account fees from 0.45%*
Cons
- No cap on fund fees
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Pricing
(3.5)
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Market Access
(4.5)
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Online Platform
(4)
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Customer Service
(4)
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Research & Analysis
(4)
Overall
4.5Capital at risk
Interactive Investor: Fixed-fee index fund investing
Interactive Investor Index Fund Investing Review
Name: Interactive Investor Index Fund Investing Review
Description: Interactive Investor offer a wide range of index tracker funds. You can either pick your own or choose from some featured funds from their Super 60 investment list.
Capital at risk.
Summary
A good choice for large index fund portfolios, as they offer good coverage and the fixed-fee model means that the bigger your account size gets, your costs stay the same.
Fees: *Fund dealing commissions are a free trade every month, then charged £7.99 or upgrade to a £19.99 “Super Investor” account 2 free monthly trades and deal for £3.99. Regular investing is free.
Pros
- Fixed account fee of £9.99*
- £1 minimum deposit
Cons
- Fixed fee not great for very small accounts
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Pricing
(4.5)
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Market Access
(4)
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Online Platform
(4)
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Customer Service
(4)
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Research & Analysis
(4)
Overall
4.1Capital at risk
AJ Bell: Best for low-cost index fund investing
AJ Bell Index Fund Investing Review
Summary
A good choice for those who want to keep costs low, as fund account charges start as low as 0.25%.
Fees: *Fund account fees reduce to 0.10% on the value between £250,000 and £500,000. There is no charge above £500,000. Dealing costs are £1.50.
Pros
- Low account fee of 0.25%*
- Wide range of index funds
Cons
- High initial deposit of £500
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Pricing
(4.5)
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Market Access
(4)
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Online Platform
(4)
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Customer Service
(4)
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Research & Analysis
(4)
Overall
4.1Capital at risk
⚠️ FCA Regulation
All index fund platforms that operate in the UK must be regulated by the FCA. The FCA is the Financial Conduct Authority and is responsible for ensuring that UK index fund brokers are properly capitalised, treat customers fairly and have sufficient compliance systems in place. We only feature index fund investing accounts that are regulated by the FCA, where your funds are protected by the FSCS.
- Related guide: How to invest in index funds
Richard Berry
This article contains affiliate links which may earn us some form of income if you go on to open an account. However, if you would rather visit the index fund platforms via a non-affiliate link, you can view the product pages directly here: