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Is Interactive Investor free?

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Adam N.
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6d ago
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Is Interactive Investor free as of June 2024?

Interactive Investor does charge a commission for real stock trading on US markets, so in this sense it is not a free-to-trade broker. However, it might still be a reasonable choice for some of you, as there are many other aspects other than commissions that are important when you choose a broker. If you wish to stick with Interactive Investor though, then you will find the fees they charge below. Alternatively, you could check our article detailing the best zero commission brokers and how their apps scored in our test.

We should note that the payment-for-order-flow model, which is used by some zero-commission brokers to generate income (rather than relying on commissions), could potentially create a conflict of interest between you and your broker. This could result in trade execution (like routing your orders to specific market makers) that might be unfavorable for you under certain market conditions, especially when using market orders (as opposed to limit orders, which seem to be less affected).

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BrokerChooser score
4.6 4.6 /5
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Overview of Interactive Investor fees and charges

When it comes to brokerage fees, Interactive Investor is a mixed bag. To see how they may affect you, first you need to figure out your approach to trading - i.e. whether you are more of a buy-and-hold investor or if you want to trade frequently; or what type of assets and in what volumes you'll want to trade. Alternatively, use our questionnaire to help you tell whether Interactive Investor fees are beneficial for you. Continue reading about Interactive Investor fees and charges to see if this is the right broker for you, or if a similar broker like AJ Bell Youinvest or Hargreaves Lansdown might suit you better.

Here's a high-level overview of Interactive Investor's fees

Interactive Investor Fees snapshot
Assets Fee level Fee terms
US stock fee Low £3.99 per trade
EURUSD fee - FX not available
US mutual fund fees Low £3.99 per trade
Inactivity fee Low No inactivity fee

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Interactive Investor fees explained

Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely because online brokerages' businesses can be much better scaled: from a purely technical standpoint, it doesn't make that much of a difference for them if they have 100 or 5,000 clients.

This is not to say, however, that they don't charge any fees at all. They make money by charging you various rates for various actions or events. Usually you need to keep an eye on the following three types of fees:

  • Trading fees - these are brokerage fees that you pay when you actually carry out a trade, like buying an Apple share or an ETF. What you pay is either a commission, a spread or a financing rate. Some brokers apply all of these.
    • A commission is either fixed or based on the traded volume.
    • A spread is the difference between the buy price and the sell price.
    • A financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
  • Non-trading fees. These are usually related to some operations you carry out in your account, such as depositing money, withdrawing money, or not trading for an extended period.

We compare Interactive Investor fees with its closest competitors, AJ Bell Youinvest and Hargreaves Lansdown.

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Interactive Investor trading fees

Interactive Investor's trading fees are mixed, which means that some asset classes come with high trading fees - be sure to check these carefully.

Let's break down trading fees according to the different asset classes available at Interactive Investor.

Trading fees

Interactive Investor's trading fees are average.

Stock fees and ETF fees

Interactive Investor has low stock trading fees.

Stock fees of a $2,000 trade
US stock
$5.0
$12.4
$14.9
UK stock
$5.0
$12.4
$14.9
German stock
$12.5
$12.4
$14.9

Data updated on June 17, 2024

Fund fees

Interactive Investor fund fees are low.

Fees of a $2,000 fund purchase
Mutual fund
$5.0
$1.9
$0.0
EU mutual fund
$9.6
$1.8
$0.0

Data updated on June 17, 2024

Bond fees

Interactive Investor has low bond fees.

Fees of a $10,000 bond trade
US Treasury bond
-
-
-
EU/UK government bond
$5.0
$12.4
$14.9

Data updated on June 17, 2024

Currency conversion fee

Interactive Investor will charge a Currency Conversion Fee for all trades on instruments denominated in a currency different to the currency of your account. The fee is charged as the following: 1.5% mark-up for positions under £25k.

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Interactive Investor non-trading fees

When it comes to non-trading fees, Interactive Investor is a rather cheap broker.

Non-trading fees include various brokerage fees and charges at Interactive Investor that are not related to buying or selling assets. This can be a withdrawal fee, deposit fee, inactivity fee or account fee.

A high-level overview of how Interactive Investor stacks up in terms of non-trading fees
Withdrawal fee
$0
$0
$0
Deposit fee
$0
$0
$0
Inactivity fee
No
No
No
Account fee
Yes
No
No

Data updated on June 17, 2024

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BrokerChooser score
4.6 4.6 /5
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Interactive Investor deposit fee

Usually, brokers don't charge anything for deposits, and Interactive Investor is no different.

Interactive Investor deposit methods
Bank transfer
Yes Yes Yes
Credit/debit card
Yes Yes Yes
Electronic wallets
No No No
Deposit fee
$0
$0
$0

Data updated on June 17, 2024

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Interactive Investor withdrawal fee

Interactive Investor generally doesn't charge a withdrawal fee.

Interactive Investor withdrawal fees and options compared
Bank transfer
Yes Yes Yes
Credit/debit card
Yes Yes Yes
Electronic wallets
No No No
Withdrawal fee for bank transfer
$0
$0
$0

Data updated on June 17, 2024

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Interactive Investor inactivity fee

Interactive Investor does not apply an inactivity fee, which is great because your account won't be charged even if you do not trade for an extended period (like several months or years).

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Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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Adam Nasli
Author of this article
I bring extensive financial expertise as one of BrokerChooser's earliest team members. Personally, I tested nearly all 100+ brokers on our site, opening real-money accounts, executing trades, assessing customer services, and providing firsthand assessment. My professional background includes roles in the banking sector and a degree from Central European University, where I teach finance. My passions lies in in-depth research of the financial industry, building trading algorithms, and managing long-term investments.
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