Video summary

The Best Stocks & Shares ISA in 2026 (BIG CHANGES)

Main summary

Key takeaways

Finance

Finance-focused summary (Stocks & Shares ISA broker comparison for 2026 “BIG CHANGES”)

Key idea / selection criteria

The speaker argues that UK Stocks & Shares ISA platforms differ meaningfully in:

  • Fees (platform/dealing costs and trading costs)
  • FX costs (buying non-GBP assets)
  • Product range (e.g., ETFs vs mutual funds)
  • Fractional share availability
  • Execution model (and the behavioral risk it creates)

So, the “best ISA” depends on the investor’s style and priorities.

Brokers mentioned + what they’re “best for” (and why)

1) Lightyear

New offer (as of 11 March, “a month old”)

  • FX fee reduced: 0.35% → 0.1%
  • No account fees or trading fees (FX is presented as the main cost)
  • Cash deposit fees:
    • Apple Pay/card deposits incur a fee
    • Bank transfer avoids it

Fractional shares

  • Fractional buying is now available for “most ETFs” (index-style investing)
  • Many US companies available fractionally (leveraging low FX)
  • Limitation: fractional shares not broadly available for GB p​ound-listed companies yet (expected but not confirmed)
  • Mentions ~6,000 investments available (about half of Trading 212’s range)

Sustainability / risk (company financials & caution)

  • Shows a latest accounts loss of ~£10m
  • Supported by ~$58m fundraising, including Richard Branson
  • Claims they’re “unit profitable” but UK business not yet profitable; using VC funding to reach full profitability
  • Speaker wants proof the pricing lasts:
    • If it continues and expands ETF/share range in ~12 months, it could become #1

Disclosures/risks

  • Capital is at risk with promotions

Use case in speaker’s portfolio

  • Used for ISA
  • Specifically for spare funds in a limited company
  • Speaker uses five brokerage accounts to help avoid exceeding FSCS limits

Promo detail (affiliate)

  • New customers using link/promo code “Damian”:
    • £100 deposit → free fractional shares up to £100
  • Promo credited to a general investment account, not an ISA

Tick​ers/assets explicitly referenced

  • None directly (discussion is mostly at ETF/US-share category level)

2) Freetrade

Core positioning

  • Stocks & Shares ISA becomes “free” on the basic plan
  • Paid tiers are described as poor in the speaker’s calculations

FX fee (important cost)

  • 0.99% (highest in the comparison)
  • Example:
    • Investing £1,200 into a foreign-listed investment → £12 FX cost
    • Also applies when selling

Where it’s strong

  • Mutual funds + legacy overlap
  • Supports mutual funds listed in pounds
  • Example mutual fund family: Vanguard LifeStrategy funds
  • Speaker’s framing: mutual fund cost advantages vs buying directly elsewhere, because some platforms charge %/uncapped annual fees

Also offers gilts

  • UK government bonds (not common among low-fee modern platforms)

SIP wrapper note

  • SIP is also on the free basic plan (ISA wrapper info)

Use case in speaker’s view

  • Best for buyers who want mutual funds + low platform fees, despite higher FX

Promo detail (affiliate)

  • Using affiliate link:
    • Deposit at least £50 → free share up to £100
  • Capital at risk

Tick​ers/assets explicitly referenced

  • Vanguard LifeStrategy (fund range)
  • Gilts / UK government bonds

3) Trading 212

Core fee structure

  • “Effectively free” for the speaker’s style
  • FX fee: 0.15% on non-pound purchases
  • Deposit-by-card/Apple Pay fee can be avoided with bank transfer

Product/tools

  • Pie feature
    • Build/copy portfolios
    • Copy from users or professional portfolio managers
  • Fractional shares
    • Described as the widest range across ETFs and individual companies
  • Start investing with as little as £1

Important caution / risk note: CFDs

  • Trading 212 is profitable partly via CFDs
  • CFDs are described as highly speculative (“most people lose money”)
  • The app may promote CFDs inside ISA search flows
    • You may see CFD results, but you can’t buy them inside an ISA without extra steps (disclaimers/suitability questionnaires)
  • Speaker recommends awareness to avoid accidental exposure

Use case

  • Speaker’s main broker
  • Has used it for ~6 years

Promo detail (affiliate)

  • Fractional share up to £100 via link/code “Damian”
  • Deposit £1
  • Code valid up to 10 days after signup

Tick​ers/assets explicitly referenced

  • None directly; emphasis on ETFs & funds

4) Prosper

Targeted “lowest fees” strategy (specific use case)

  • Entry around 2023
  • ~200 funds offered, but 30 ETFs have fund provider fee refunds

Fee structure

  • No account fees
  • No trading fees
  • For the 30 ETF list:
    • They refund the built-in ongoing charge (fund fee)
  • Example exposures mentioned within the 30:
    • S&P 500
    • UK market and bond funds
  • Speaker clarifies these are examples of categories, not the exact holdings they personally invest in

Company financial caution

  • Shows ~£2.5m loss in 2025, up from ~£1.9m the prior year
  • Seeking revenue via savings and financial guidance products
  • Speaker warns the “current offer” may not last forever

Use case

  • Consider only if you find the investment you want on Prosper’s 30 ETF fee-refund list

Tick​ers/assets explicitly referenced

  • S&P 500
  • UK market and bond funds (category)

5) InvestEngine

ETF-only ISA

  • No individual shares—ETF-only

Fees

  • No platform/dealing/FX fees because ETFs are “listed in pounds”

Scale

  • 849 funds (at recording time)

Execution trade-off (process / risk control)

  • Slow execution
    • Batches orders
    • May take days to show/withdraw
  • Speaker’s view: this prevents emotional trading (“distraction-free, set and forget”)

Recent reductions (potential downside)

  • Removed exchange-traded commodities
  • Removed pre-built portfolios
  • Removed low-cost managed ISA service

Use case

  • Speaker uses it for business investing via a limited company; they apply the same method for the ISA

Tick​ers/assets explicitly referenced

  • Mentions exchange-traded commodities (asset class), no specific tickers

6) IBKR (Interactive Brokers)

Positioning

  • Best for frequent/serious trading and advanced execution

FX fee

  • Described as lower than Lightyear’s 0.1% (speaker’s claim)

Costs and drawbacks

  • Has trading fees and minimum account activity fees
  • Speaker concludes it’s usually more expensive overall unless you place trades of a few thousand pounds or more frequently

Pros

  • Advanced trading functionality and execution
  • Speaker’s view: confidence that fee/offers won’t change quickly

Cons

  • Complexity—fee tables and tools can be overwhelming

Tick​ers/assets explicitly referenced

  • None

7) Hargreaves Lansdown (HL)

Not recommended for standard Stocks & Shares ISA

  • Speaker criticizes HL mainly on cost.

Junior ISA

  • Junior Stocks & Shares ISA is described as free and best in their ranking

Critiques

  • Fees updated in a way that increased costs for many investors
  • UI described as outdated (“Teletext” look)

Use case

  • Onboarding children early (speaker notes HL “trying to lock in the next generation”)

Tick​ers/assets explicitly referenced

  • None

8) Interactive Investor

Positioning

  • More traditional broker:
    • Phone support
    • Managed investment options
    • Range of stocks and funds

Fee trade-off

  • Fixed-fee platform is uncompetitive for small investors
  • More competitive for larger portfolios than HL/AJ Bell/Fidelity (speaker’s comparison)

Use case

  • People who value human support and have larger balances that justify fixed fees

Tick​ers/assets explicitly referenced

  • None

Framework / step-by-step investment methodology (broker selection)

No formal valuation/technical framework was provided. The “framework” is a decision process driven by behavior and costs:

  • Compare FX fees (especially for non-GBP assets)
  • Compare platform/dealing fees (account and transaction costs)
  • Check fractional share availability
    • ETFs-only vs ETFs + individual stocks
  • Choose by product type
    • ETFs-only vs mutual funds support
    • Whether you need gilts
  • Consider execution model / behavioral risk
    • Faster execution vs batching/scheduled execution to reduce emotional trading
  • Be alert to CFD promotion pitfalls (Trading 212)
  • Watch ISA eligibility boundaries (especially around CFDs)
  • Evaluate broker sustainability
    • Look at recent company losses and fundraising/support
    • Consider whether fee promotions look temporary
  • Use multiple accounts to manage FSCS concentration risk
    • Speaker spreads across platforms

Key numbers, timelines, and explicit recommendations

Key numbers / timelines mentioned

  • Lightyear FX: 0.1%
    • New on 11 March
    • Speaker wants 12 months of proof
  • Lightyear company loss: ~£10m (latest accounts)
  • Lightyear fundraising: ~$58m (incl. Richard Branson)
  • Freetrade FX: 0.99%
    • Example FX cost: £1,200 foreign investment → £12 FX cost (also on sell)
  • Trading 212 FX: 0.15%
  • Trading 212 tenure: ~6 years
  • Prosper:
    • Fee-refund ETFs: 30
    • Total funds: ~200
    • Losses: ~£2.5m (2025) vs ~£1.9m prior year
  • InvestEngine funds: 849
  • Execution delays: orders/withdrawals can take days
  • Cash interest mentioned:
    • Trading 212 and Lightyear referenced as paying competitive interest
    • Freetrade cash interest at 1% (speaker says “significantly lower”)

Speaker’s final “who they will use” recommendations

  • Trading 212: main broker (fee-free for preferred approach; described as sustainable)
  • Lightyear: best new option
    • Use inside limited company
    • Test offering over the next year
    • Potential top pick if pricing/range persists
  • Freetrade: best for mutual funds
  • InvestEngine: passive, “set and forget” distraction-free approach
  • Prosper: only if holdings exist on Prosper’s 30 ETF fee-refund list
  • IBKR: professionals/frequent traders
  • Hargreaves Lansdown (HL): kids junior ISA (free) and “next generation” framing
  • Interactive Investor: phone support + managed options for larger balances

Disclosures / disclaimers noted

  • Broker links are affiliate links:
    • Using them pays the creator/viewer no extra cost; “doesn’t affect opinion.”
  • Brokers mentioned are regulated/authorized by the FCA and covered by FSCS.
  • Must follow CAST rules (client assets segregated from firm assets).
  • Promotions: capital is at risk if you invest.
  • CFDs note:
    • CFDs are speculative
    • Trading 212 may surface CFD results in ISA search flows
    • Buying CFDs inside an ISA may require extra steps (disclaimers/suitability)

Presenters / sources

  • Presenter: “Damian” (named via promo code/affiliate branding: Damian)
  • Company backing source referenced: Richard Branson
  • Regulatory sources referenced: FCA, FSCS, CAST rules

Original video