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FAQs - Funds Fan

 

Fair Flat Fees

Your questions answered.

 

About Service Plans

What is a Service Plan?

A Service Plan gives you access to a package of pricing designed to better suit your needs. There are three Service Plans, each with a monthly subscription that covers administration of all accounts in your own name and giving you free credits. The trading commission charges differ between the Service Plans depending on the typical transactions you do. Funds Fan Service Plan for example, better suits a long-term investor looking to build a portfolio of funds and investment trusts, with commission charges for fund trading reduced to £3.99.

Why are you changing your prices?

We wanted to give you the flexibility to choose from a range of Service Plans, so you can find one that best suits your needs. We are confident that we are delivering better value for you. Independent research conducted on our Service Plans shows how much you can save with Interactive Investor compared to our competitors. You can view the research here.

What will happen if I don’t select a Service Plan?

You will be moved onto a Service Plan that we estimate best suits your current investing behaviour. If you think you may be on the wrong plan don’t worry, you can change before the pricing goes live on 1st June 2019, and any time afterwards.

Charges

When will the payment be taken each month? 

Payments will be taken on or around the 10th of each month. We will apply your free credit on the same day.

I have more than one account with Interactive Investor, do I have to pay for two separate plans?

No, as long as your accounts are in your sole name and linked, you can hold multiple accounts under one plan (please note SIPPs are an additional cost on top of the Service Plan’s monthly fee).

I’ve already paid my quarterly fee, how does this work when the monthly payments begin?

When the monthly fees begin in June, customers who paid their £22.50 quarterly fee in April or May, will get a pro-rated refund (£7.50 if paid in April, £15 if paid in May). You will receive this refund in June.

If I choose to leave, will you charge me to transfer out?

We removed exit fees from our business in full back in 2018 as we see these as an unfair barrier to investors. We pride ourselves on our value, and ask you to consider whether other providers would offer you a better deal, with Fair Flat Fees so your charges don’t increase as your investments grow, monthly free credit and if you can hold all your accounts under one plan and fee. Before you move, please take a look at independent research that looks at how much you can save with Interactive Investor compared to our competitors.

Are any other charges changing?

There are some other charges that will change with effect from 1st June 2019, which are outlined in the following table. (Please note SIPP administration fee, SIPP income drawdown fee and CREST Personal Membership fees are moving to monthly payment.)

Charge Current Rate (frequent trader) New Charge from 1st June 2019
Buy or Sell UK shares, ETFs, funds and investment trusts with trade value over £500,000 £70.00 (£66.00) £70.00 (Investor and Funds Fan), £66.00 (Super Investor)
Buy or Sell UK shares, ETFs, funds and investment trusts with trade value £100,000 to £500,000 £40.00 (£36.00) £40.00 (Investor and Funds Fan), £36.00 (Super Investor)
Buy or sell US shares over £100,000 0.03% of the trade value 0.04% of the trade value
Buy or sell other international shares 0.08% of the trade value 0.1% of the trade value
Dividend reinvestment £1.00 £0.99
Regular investing £1.00 £0.99
Extended settlement £3 In addition to the relevant online commission rate £4.99 In addition to the relevant online commission rate
Telephone trades £40 In addition to the relevant online commission rate £49.00 In addition to the relevant online commission rate
Paper documents £10 + VAT £3.00 + VAT
Non UK Resident
We make an additional charge to cover additional operational costs for customers not resident in the UK
No charge £3.99 a month

SIPP

Are the SIPP charges changing?

The total SIPP charges are not changing, but we will be moving from annual to monthly collection after the anniversary of your most recent SIPP administration fee / income drawdown fee.

I’ve already paid my annual SIPP administration fee / income drawdown fee, how does this work when the monthly payments begin?

The new monthly fees for SIPPs will begin on the month you would have been due to pay the next annual fee. For example, if you paid your annual fee in July 2018, your first monthly fee will be taken in July 2019.

Are SIPP fees included in the service plan monthly price (e.g. £9.99)?

No, SIPP administration fees and income drawdown fees are changing to a monthly fee of £10 (including VAT) each, which are an additional cost on top of the Service Plan’s monthly fee.

Switching Plans

How have you chosen which Service Plan to put me on?

We have looked at your trading behaviour over a 6 month period between October 2018 and March 2019 to estimate which is the best value plan out of our range for you based on number of trades against our new prices.

How do I know which Service Plan is best suited to me?

Our All Service Plans page has some useful information and tables that illustrate how each plan works differently for different trades and investors. Take a look to see which might be the best fit for you.

Can I change plans?

Yes. You can review and update your Service Plan from 15th April 2019 at any time online. 

How do I change plans?

  • Login to your Interactive Investor account, head to your account overview page, and click ‘View plan’.
  • You will see your current Service Plan, and can view details of the different Service Plans available. Each plan has some example costs shown to help you choose which option is best for you and your investing.
  • Once you have made your decision, click ‘Change my trading plan’’.
  • The page will tell you when the new plan will become effective, and what your new monthly charge will be.
  • You will also receive a Secure Message to confirm the change.

When will my new Service Plan be effective from once I change?

Your new Service Plan’s effective date varies depending on which plan you are currently on and which you are moving to.

If you are changing to a higher priced Service Plan, the new trading commission charges will be effective immediately allowing you to benefit straight away.  However, you will not pay the new Service Plan fee until the collection date, on or around the 10th of the month.  

If you are changing to a lower priced Service Plan, you will keep your current lower trading commission charges until the end of the period that you have paid for, and the new lower Service Plan Fee will be collected on or around the 10th of the month.  

If you change plan within 14 days of the next fee collection date (due on or around the 10th of the month), your current service plan fee will be collected as usual on that date, with your new plan coming into effect the following month.

For Example – If you were moving from the Investor Service Plan to Funds Fan Service Plan, and changed on the 2nd June, the payment on or around the 10th June will still be charged as originally planned (£9.99 for the Investor Service Plan). You will benefit straight away from the Funds Fan Service Plan commission costs but will still pay the Investor Service Plan £9.99 fee on or around the 10th June.  The following month, on or around the 10th July, the Funds Fan Service Plan fees will take effect and you will be charged £13.99.  

Free Trade Credit

What is free credit?

These are credits equivalent to a monetary amount, that are applied to your account monthly. You can use free credits across any of your accounts, for any trade. They expire 90 days after issue.

Do I still get free credit?

Yes, you will receive free credit monthly, equivalent to a monetary value of £7.99 a month, following the successful payment of your fee. Depending on which plan you are on, this will get you at least one free trade a month, and these can be used on various trades including regular investing, dividend reinvestments and real time trading. 

You will get your free credit on the same day that your monthly charge is successfully taken.

What will happen to my existing free credit that I haven’t used yet?

Your existing free credit will stay on your Plan until 31 December 2019. If it is not used, after this date it will expire. You can see your unused credits at any time online (on your account overview page, and you can click ‘Credits overview’ for a more detailed breakdown).