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Is Free trades £3 ISA worth it?

DavidG

New member
Apr 3, 2021
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472
Is the £3 cost of the ISA worth it with Free trade?
Especially compared to other brokers this fee seems rather expensive.
I've read that its best to keep fees under 1% so would need a account returning £300 to just cover this fee.
 

The Dividend Experiment

Administrator
Staff member
Moderator
Feb 23, 2021
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Is the £3 cost of the ISA worth it with Free trade?
Especially compared to other brokers this fee seems rather expensive.
I've read that its best to keep fees under 1% so would need a account returning £300 to just cover this fee.
When you say compared to other brokers who did you have in mind specifically? I think the Trading212 ISA might be better if you wanted a direct competitor
 

Cey

New member
BETA
Mar 6, 2021
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3 Pounds for an ISA is a lot of money for a lot of people. The opposite of making investing accessible to the "masses". That's my personal opinion.
ISAs are a long term product (at least for me) so say 10-20 years. So if I do the math it really hurts.

3x12=36 Pounds a year. Now put that into a compound interest calculator with an average market return of 7% and let that run over 20 years you end up with 1522Pounds.

1522 Pounds is a months salary, a holiday, your rent... you get the idea. :)
You can even get a beaten up Honda Civic !