Is loyalty hitting you in the wallet?

• New interactive investor research reveals that one in five investors don’t compare investment platform fees due to brand loyalty alone
• Around one third haven’t compared the costs associated with their investments in over a year
• The same research reveals only around one in three investors know exactly what fees they are paying
• interactive investor has launched new comparison tools for ISAs and SIPPs as it urges investors to ‘dare to compare’ their fees

One in five (20%) DIY investors in the UK say they wouldn’t switch to different investment platform purely out of loyalty to their current provider. That’s despite a third (36%) having not compared the costs associated with their platform in over a year, according to a nationally representative survey [1] of 1,000 UK investors from the UK’s second-largest private investment platform, interactive investor.

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The research is part of interactive investor’s new ‘Dare to Compare’ campaign, which aims to shine a light on the lack of comparison culture in the UK investment market. The platform is calling for investors to check what fees they pay and ensure they are not being charged over the odds.  

Half (50%) of respondents to the survey said they wouldn’t switch because they were satisfied with their current provider, despite only a small proportion (37%) being 100% confident that they knew what fees they were currently paying. 

How much are you really paying?

Myron Jobson, Senior Personal Finance Analyst at interactive investor, said: “While it’s understandable that many may feel loyal to their investment platform due to the years they have been tied to them, it may not always be the best choice when it comes to their money.

“It doesn’t always pay to be loyal, which is why it’s so important for investors to check their platform fees and make sure their provider is right for them. Our flat-fee model means that the more your money grows, your fee stays the same. But this isn’t necessarily the case for all platforms, and particularly those who charge a percentage fee – meaning that the more your money grows, the bigger cut they take of your wealth.” 

interactive investor’s research also discovered that most adults regularly compare car insurance (57%), home insurance (54%), savings (53%) and mobile phone contracts (51%). Yet only 7% said they would definitely compare prices from different providers before opening a new account with an investment platform. 

Additionally, around one in three (30%) DIY investors revealed that they won’t switch investment platforms due to fears of incurring hidden fees when switching. 

Myron Jobson added: “Scaling and, often, hidden fees are a big problem in the DIY investment world that make it difficult for customers to know whether they’re getting the best deal. Most people wouldn’t dream of sticking with a car insurer that wasn’t giving them the best price, so why should they stay faithful to an investment product that is charging them over the odds.

“Investors need transparency from their investment platforms – say ‘no’ to hidden charges and fee structures that disincentivise saving by increasing the more you invest. It’s time for a reset in our industry, and a shift to greater simplicity and better value.”

interactive investor has launched new comparison tools to help investors ‘dare to compare’

Responding to the research findings, interactive investor has launched new comparison tools for ISAs and SIPPs to encourage transparency on fees and charges, and to help investors make informed decisions about the products they use.

Using interactive investor’s new ISA comparison tool users can type in the value of their investment portfolio, and it will compare the difference in fees between interactive investor and other major providers over different time frames.

interactive investor estimates new comparison tool brings to light that an investment portfolio of £30,000 could save around £62 in fees per year in the first year with interactive investor – and saving almost £900 across the next 10 years (assuming 5% growth per year) [2]. 

Savers can also use interactive investor’s new SIPP comparison tool to help them decipher often complicated fee structures and calculate the real value of special offers like cashback. For example, a £3,000 cashback offer (currently being run by Hargreaves Lansdown) for SIPP portfolios over £1 million, may actually result in investors breaking even in the first year due to the scaling fees on an investment pot of that size. The tool also shows that, longer-term, the fee will just get bigger every year [3].

Methodology 

Survey 

[1] The survey research was conducted by Censuswide, among a sample of 1,000 Nationally representative UK respondents (Aged 18+). The data was collected between 15.01.2025 - 17.01.2025. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.

[2] Results are based on published ISA charges as at 06/01/2025 for Hargreaves Lansdown, AJ Bell and Fidelity. Assumptions:

• 50% of ISA investments held in funds and 50% in equities

• 2 UK equity and 2 UK fund trades per year

• 12 regular UK equity and 12 regular UK fund trades per year

Other trading behaviours will result in different charges than those shown. This comparison covers a single year and does not account for investment growth or the impact of inflation over time. To ensure a fair comparison, fund manager charges have not been included. The information provided is for illustrative purposes only. For precise charges, we recommend contacting the ISA provider directly.

[3]