interactive investor: the number one home for ISA millionaires
Myron Jobson explains why out flat fee is a key draw.
1st March 2024 11:37
by Myron Jobson from interactive investor
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- Flat fee a key draw: interactive investor charges a flat monthly fee, meaning our ISA millionaires have been able to keep more of their wealth.
interactive investor is the most-popular investment platform among ISA millionaires, with almost one in five of all seven-figure adult ISA pots held on the platform, according to new analysis.
- Invest with ii: Open a Stocks & Shares ISA | ISA Investment Ideas | Transfer a Stocks & Shares ISA
The number of ISA millionaires on interactive investor, the UK’s second-largest DIY investment platform, now stands at 1,001 (as at 31 January 2024) - almost 200 more than the total from our largest competitor Hargreaves Lansdown (813).
There were some 4,070 Britons with a seven-figure ISA portfolio as of April 2021, according to data obtained following a freedom of information (FOI) request on behalf of financial services network the Openwork Partnership last year.
The figure factors in adult ISA accounts with a market value of £1 million and over. This includes cash ISAs - although most ISA millionaires are likely to have their money in stocks and shares.
interactive investor had 731 ISA millionaires, as at 31 January 2021, accounting for 18% of all seven-figure ISA portfolios – using the 4,070 figure. The market share would be higher if the cash ISA cohort is stripped out.
When compared against interactive investor’s current tally of ISA millionaires (1,001), the market share rises to 25% - although the total number millionaires would have likely risen since April 2021 because of investment growth and additional contributions.
Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The ISA has proved a game changer for investors, providing a tax-efficient wrapper to invest, build wealth and meet financial goals. It has created thousands of millionaires – the largest portion of which invest through interactive investor.
“Our popularity among ISA millionaires is a clear endorsement and recognition of the quality of our offerings – not least our flat monthly platform fee. By offering transparent and predictable charges on investments, we empower our clients to keep more of their wealth, even as the value of their portfolio increased compared to percentage-based fees that escalate with portfolio growth. These savings can be substantial and life-changing over a lifetime of saving.”
Recent analysis of platform fees, conducted with financial services consultancy the lang cat, found that percentage-based fees paid can have a negative compounding effect equating to as much as £17,000 over 10 years on a £500,000 ISA portfolio in accumulation.
Key ISA millionaires stats on interactive investor
- The age of an interactive investor ISA millionaire is 74, compared to an average age of 57 for the overall ISA cohort
- Early birds: 40% of the total 12-month subscriptions from ii’s ISA millionaires were added between 6 and 30 April in 2023
- Investment trust accounts for over 40% of a typical ISA millionaire portfolio
- Some 65% of ii’s ISA millionaires are male, and 35% female, which is in line with ii’s wider ISA customer base.
Camilla Esmund, PR manager at interactive investor says: “With International Women’s Day around the corner (8 March), it’s encouraging to see a substantial number of female investors at ii who have grown their ISA pots to a seven-figure valuation. 35% of our ISA millionaires are women, which is broadly in line with our wider customer base, but we’d love to see that percentage continue to rise year on year. And as we have seen in our recent Private Investor Performance Index, female investors on ii have actually outperformed male investors on ii over the longest time frame.”
More information on ISA millionaires on interactive investor can be found here.
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