IG has launched a new “Fat Cat Index”, designed to show how much UK investors may be overpaying in Stocks and Shares ISA fees and compared to its own ISA as a lower-cost alternative.
According to the new IG index, 52% of UK investors are currently using one of the 12 most expensive platforms.
For active investors making around six trades per month, the average annual overpayment is estimated at £515 compared with lower-cost providers. On the most expensive platform, the gap rises to £922 per year. Over a typical 40-year investing lifetime, that could amount to almost £28,440 in avoidable fees, before factoring in the lost impact of compounding.
Even less active investors are paying more than they need to. Passive investors could be overpaying by an average of £263 a year, while those making three trades per month may be paying around £357 more than necessary.
Nearly half (47%) say they have never calculated their total platform fees, and the same proportion admit they find fee terminology confusing. Despite this, 55% believe they are already paying the lowest possible costs. Meanwhile, 48% say they hesitate to switch providers due to the perceived hassle involved.
Michael Healy, Managing Director for UK & Ireland at IG, said: “Most retail investors in the UK are being ripped off, paying hundreds of pounds a year in fees for a service they could access for far less by switching platforms. Even small differences in fees can make a huge impact over a lifetime.”
Is IG’s ISA any good?
IG Stocks & Shares ISA Expert Review: A Great All Round Investing Account
Account: IG Stocks & Shares ISA
Description: IG offers an excellent ISA if you want to invest in shares, ETFs and pre-made portfolios in a tax-free wrapper. Investors looking to optimise their 2025/2026 ISA allowance can also get up to £200 or 1% cashback on deposits made before 5 April 2026 if they open an IG ISA account before 13th February 2026. Capital at risk.
Is IG A Good Stocks & Shares ISA Account?
Yes, if you want to invest in shares, ETFs and pre-made portfolios in a tax-free wrapper, IG offer a stocks and shares ISA. If you want to combine your short-term trading with some longer-term investments, you can have both on IG. If I’m completely honest, there are better stand-alone investment platforms that offer ISAs like Interactive Investor, where you pay a flat fee for all your accounts as opposed to IGs quarterly custody fee. But for tax-free trading (spread betting) and tax free investing (ISAs), IG has a very good offering.
Fees: IG has removed dealing fees so you don’t pay commission when you buy and sell UK or US shares in your ISA. IG charge £24 per quarter in custody fees for an ISA account, but this is waived if you trade at least 3 times per quarter. Smart Portfolio fees are 0.5%, capped at £250 per year. Fund management charges are 0.13% and transaction costs are 0.09%.
IG offer a very cheap way to include US stocks directly in your investment ISA. But, if you prefer not to trade in individual equities you can take advantage of and invest in a range of Smart Portfolios that are selected and managed by BlackRock on IGs behalf.
There is zero commission on US stock and UK share trades.
Market Access: Brilliant – whenever I am writing a “how to buy shares in…” guide I always check IG first as they have about the broadest range of shares to trade as possible. Fairly limited on investment funds, but they also have Smart Portfolios for investors who want a pre-built managed investment portfolio.
App & Platform: Superb, I’ve been using and comparing IG for over 20 years and they have always had and continue to produce some of the best investing apps and platforms.
Customer Service: Great if you’re a big customer as you get a personal account manager. I’ve had a few issues trying to phone and get help in the past, but most things can be fixed online.
Research & Analysis: IG always produces great research from analysts like Chris Beauchamp, who was in our Quiz of the Year. Plus IG has lots of educational guides and the platform has integrations from Reuters and other news sources. IG’s social channels are worth following too for daily market commentary.
Pros
- Established stock broker
- Low-cost ISA
- Lots of investment options
Cons
- Also offers high-risk products
- Other ISAs are cheaper
- Pricing (4.5)
- Market Access (5)
- App & Platform (5)
- Customer Service (5)
- Research & Analysis (5)
Overall
4.9
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 The Sunday Times, 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.
To contact Richard, please see his Invesdaq profile.
