Best Stocks and Shares ISA ISA for 2022 - FreeTrade, IG Index, II, IKBR, AJ Bell Compared
Personal_Finance / ISA's Apr 20, 2022 - 04:51 PM GMTBy: Nadeem_Walayat
NUMBER CRUNCHING THE BEST STOCKS AND SHARES CASH ISA
NEW TAX YEAR NEW ISA and maybe an additional SIPP, though I have to keep in mind the lifetime LIMIT, currently at just over £1 million! ISA"s are the way to go, a no brainier for UK stock investors, continue upto 20k per person (40k per couples) annual allowance and can transfer in cash ISA's on top (which I still have too much of),
So BEFORE I opened my latest stocks and shares ISA, I did a number crunch to determine which is best, now there maybe some minor errors in this table but overall it gives a accurate picture that I used to make my decision of who to go with for 2022-23.
Big Image - https://www.marketoracle.co.uk/images/2022/Apr/Best-cash-ISA-2022-NW.jpg
From BEST to WORST
IKBR
IBKR on face value offers the best bang for ones buck, but it's mot exactly for the inexperienced. After opening one last week I spent a good 3 hours going through every setting to figure out how to make proper use of the platform. Plus their fee structure can easily bamboozle would be investors as to exactly how much you will pay, i.e. they charge for REAL TIME QUOTES! That's 1 cent per quote! Whether you place an order or not, so you may want to check the prices elsewhere before you decide to place an order or just stick to using delayed quotes. Also IKBR allows after hours trading with very wide spreads, which can be a double edged sword i.e. after hours prices can be deceptive.
So IKBR even though it is the clear winner is NOT for Newbs! You will be stuck! Likely spend days trying to figure out what all of it means!
Still if you are up for it, it cannot be beat in terms of the low fees.
IKBR are running a promotion! Where if you signup using this link, I get $200 and you can get upto $1000! WAHOOO!!!!
To me this sounded to be too good to be true! So I went and trawled through their T&C small print and found the following line hidden away that they DO NOT MENTION ANYWHERE ELSE!
"Tax-advantaged accounts are not eligible to participate in the Program."
And hey presto the promotion is NULL and VOID for ISA's! These IKBR clowns tried to pull a fast one on me! Wanted me to promote their excellent low fee's platform for what would turn out to be NOTHING in return!
Anyway it is the best platform, feel free to use my link to signup https://www.interactivebrokers.com/referral/nadeem423 though beware we WON"T GET ANYTHING for opening and funding a SHARES iSA not unless we ALSO fund and use their NON ISA account with a minimum of $10,000, within 30 days of opening an account, they got so many get out of paying referral clauses that it's joke promotion (video coming).
Bottom line - Low fee's. complicated platform that will confuse MOST, we'll it even took me a good 3 hours of use to get to grips with it. Also beware NOT TO FOLLOW their account funding procedure else you WILL pay a FEE, I just ignored their instructions and DID a BACS, and as if by magic the funds arrived a couple of days later WITHOUT any FEEs!
FREETRADE ISA
I have covered the Frreetrade iSA before, this is the exact opposite of IKBR, VERY SIMPLE and EASY to USE! No problems opening or funding an account. I rate this as No 2 in terms of the best iSA. I have used it to the hilt to scale into positions and then scale out a little on the way up. IT IS GOOD!
BUT only for smart phones NO desktop, which at first peeved me off until I got used to placing orders on my phone.
Plus if you follow my link WE BOTH get a FREE SHARE, all you need to do is deposit £1! As for the value of the free share? In my experience it's going to be around £10. But you might get lucky as it is a bit of lottery i.e. maybe 1 in 100 gets a £200 share? Most £3 - £30.
Note to be able to use it properly you will have to pay £10 per month. £120 per year, so don't bother opening one if your just going to put a couple of grand into it.
Follow my link for a FREE SHARE, NOTE if you open an account WITHOUT the link you WILL NOT GET a FREE Share.
I like it, I use it, and I will be transferring a cash ISA into it.
IG INDEX
A close third on my list, it's fees structure is better suited to frequent traders, fee's are high for light users. Platform is good easy to use.
II SIPP
Is the potential ace in the hole! Yes it has the potential to resolve in a NEGATIVE FEES! BUT ONLY IF ONE IS PREPARED TO PLAY THE F/X GAME! I.e. transfer into dollars when sterling is above 1.40 and then maybe transfer excess cash back into sterling when below 1.30. Which means one can end up with plenty more dollars buying power than if one just bought at the spot rate, as the II spot rate is an atrocious rip off, 3% bid offer spread!
However given that sterling is currently perched at 1.30, I am not going to be opening an II SIPP anytime soon, as they do offer a promotional 6 months of no monthly fees so I will bide my time and open the SIPP only after I see GBP trading north of 1.40, else just like it's ISA it is not worth opening when sterling is weak.
II ISA
II is a good platform, but the F/X fee is a total rip off a 3% bid offer spread! So II ISA is only good for accumulating long-term positions and for me is used as a last resort, for instance I have distant limit orders that I renew every 3 months, which occasional get hit! Such as happened with Facebook at a limit of $238 which seemed very improbable when Facebook was perched on $320 but that's what happened! And it got triggered!
Similarly a limit to buy Google at $2252 seems very unlikely but you never know it may happen and like wise for most of the AI stocks, i.e. Apple at $128, MSFT at $245, Amazon at $2352, Micron at $56, AMAT at $125 (that one got triggered!) and so on.
So why did I open an II ISA if it is largely a pile of fx charges poop?
I didn't! EQI sold me and most of their ISA clients into II bondage. So I am stuck. It's not all bad because they do cover a wide range of markets and the platform is good, unlike AJ bells creaking monstrosity that I have been using since the late 1990's, they have not upgraded it in decades! What once was fantastic is now a dinosaur platform! No Limit orders on US stocks! No limit orders on US LSE listings!
The only plus is they allow one to buy a handful of US listings on the LSE and thus dodge their 1% F/x fee.
So the best ISA for the less experienced is the FREE TRADE ISA. Which I hold,. I also hold their SIPP which is not quite upto scratch i.e. ONLY employee contributions and NO pensions DRAWDOWN! You have to MOVE it to another provider which will likely mean selling everything and moving as cash so not for someone planning pension draw down anytime soon!
Whilst IKBR is good if you want to take stock investing to the next level but beware of the hidden fees.
Your analyst who has to wear an uncomfortable boot for another 5 weeks.
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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.
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