iWeb is a low-cost trading platform owned by Lloyds banking group. Customers can use this platform to buy and sell shares with low commission prices and no annual fees.
This review will go over what products are on offer, the features available to users, and the costs associated with buying and selling shares.
iWeb Products
There are three main products on offer with iWeb, which take the form of different accounts. The types of accounts you can set up can deal with stocks and shares ISA, SIPP (self invested personal pension), and share dealing accounts.
iWeb Share Dealing Account
Am iWeb share dealing account allows you to trade shares through many of the major stock exchanges, such as the London stock exchange. You can access over 1,500 shares that cover multiple countries and large companies for online share dealing.
Trading shares using this account allows for speculative investments that are less stable than cash savings, but have the potential for more significant returns in the long term.
A share dealing account is most suited for people who would like to make investments but already have a stocks and shares ISA account or have exceeded the £20,000 annual allowance on their ISA.
Stocks and Shares ISA
A stocks and shares ISA account allows for investment decisions that include shares, ETFs and investment funds.
This account gives access to an investment allowance of up to £20,000 every tax year and has an account opening fee of £100. This account option gives you all the share trading capabilities as the iWeb share dealing account, while also giving you access to an ISA.
This account aims to serve people looking to invest in their future in multiple ways using the same trading platform. The investments in these accounts have protection from capital gains tax, dividends tax and income tax.
Access to seven different stock markets internationally allows for a wide variety of company share trades and helps you to build a diverse portfolio of investments.
SIPP Account
A SIPP account gives investors the ability to create their own pension scheme and contribute up to £40,000 to it every year. Creating one of these pension accounts can help to protect your funds from taxes and invest in your future.
This type of iWeb account is ideal for people looking for an efficient way to invest in their future and people who want to take control of their pension at a low cost. A personal pension is especially important for those who are self-employed or want to have the flexibility to retire when they want to.
There is no opening fee for this type of account and only a quarterly fee based on the value of the pension.
iWeb Fees and Charges Review
The fees and charges vary for each account type that you use for your investment decisions.
Aside from a SIPP (which you can open at no cost), there is an account opening fee of £100 for the main iWeb products.
When using a share dealing account, you also incur a fee of £5 for every online trade you make. These individual trade fees mean that the trading platform can be used as much or as little as required without ongoing account fees.
The fees associated with SIPP accounts are charged quarterly depending on how much has been contributed to the pension. If the value of the pension is under £50,000, then the fee is £22.50, and for any value over this, you are charged £45.
When investing in funds specifically, there are ongoing fees between 0.25 and 1.5% for the amount of the investment, depending on which fund you are looking to invest in. There is also a 0.50% fee for transactions made in the investment, such as adding additional money into the fund.
Is iWeb Safe?
iWeb's platform is operated by Halifax Share Dealing and is part of Lloyds banking group, making it part of an established and trustworthy banking group. The platform has a great deal of consumer protection implemented for investments. The Financial Services Compensation Scheme (FSCS) provides compensation for losses up to £85,000 if your assets are lost on iWeb's side.
For customers looking into a SIPP account, iWeb partners with AJ Bell, meaning your pension funds are in the hands of an award-winning pension provider. This partnership gives the security of a sturdy infrastructure that helps you to contribute to your private pension with the knowledge that it is in safe hands.
In terms of asset security, your consumer assets are kept separate from the iWeb stocks in order to provide another layer of protection to your investments.
Keeping the consumer and company assets apart means that if the company were to cease trading, your assets would still be yours rather than being included in the business's inventory.
Research Service and Tools Review
iWeb provides tools and services that can help you to research and identify potential investment opportunities. These features are contained in the ‘Markets and Insights' section of the iWeb website. Going to this section gives you relevant research and news that can help you to make your own investment decisions with confidence.
The information found in this section does seem to be quite basic in terms of depth but can be a fantastic starting point for research, providing broad outlines and a direction for further research. The information provided in these research tools is no replacement for a qualified financial adviser but can help to build your foundation knowledge of trading.
Guide to Opening an iWeb Account
In order to start using the iWeb trading platform, you need to open an account. The account opening process takes very little time and only requires a few steps. The first step is to create and verify your account based on your personal information, such as your name, address and national insurance number.
Once you have provided these details and accepted the terms and conditions of the company, you are ready to choose an account type and start investing.
Once you have a verified account, you can then choose the type of account you want to open. If you choose a stocks and shares ISA or a share dealing account, the £100 account opening fee will be taken from the debit card you added in the verification process within 10 working days of the account opening. Once these steps are complete, you are ready to start investing.
iWeb Account Administration Charges
Your trading account does not have a flat fee for having an open account. There are several management fees that you are charged when taking certain actions on your account. If you want to repair or void an ISA, there is a fee of £25 for completing the process. There is also a £25 fee for processing a same-day payment.
The other administration charges you should be aware of are the £12.50 charge to receive a paper statement and a £10 commission for any sales that have fees iWeb needs to cover. There are no inactivity fees or any annual fees for having an account.
Pros and Cons of iWeb
In order to assess whether iWeb is the best investment platform for you, the positives and negatives of the platform should be discussed. The pros of using this platform are as follows.
- The selection of shares available to trade is varied enough to help any level of investor create a diverse portfolio of assets. Access to 7 different international stock markets, including London Stock Exchange, provides the capacity for international trades.
- The lack of annual fees makes trading with iWeb well-suited for those looking to start investing or invest semi-regularly. Not having to pay a yearly fee is especially noticeable when using stocks and shares ISAs, as this account type gives you all the benefits of an ISA and the ability to trade stocks without a yearly payment.
- The iWeb trading platform is run by Halifax share dealing and is a part of the Lloyds Banking Group, making it a secure and trustworthy place for trading and investing. The integration of the financial services compensation scheme and the segregation of assets allows traders to invest with confidence.
- iWeb offers multiple avenues for customer support, including a telephone support line for questions to be answered promptly, an easy-to-access chat function, and a support hub with information on various topics, from tax changes to trading US shares.
There are a few factors that iWeb could improve upon as a trading platform. While the fee structure is helpful for people looking to start on their investing journey, it is not well suited to people who are doing daily trading.
More advanced and frequent investors could maximise their profits through the lower trading fees that other providers offer. Another factor that could put off experienced investors is the need for more advanced features.
As a share dealing platform, iWeb strives for simplicity and ease of use.
The platform has fairly basic functions with no frills or advanced features, making it ideal for beginners, but it can leave a bit to be desired compared to other platforms.
iWeb Alternatives
A great alternative to iWeb is Interactive Investor. This platform offers a similar suite of trading accounts to iWeb, but uses a monthly subscription model. Their ISA is very similar in its offering and has the same £20,000 annual ISA allowance.
The most considerable edge Interactive Investor has over iWeb is the ability to circumvent trading fees, but this potential lack of fees means that trades outside of the parameters are more expensive than iWeb.
iWeb Review Conclusion
As an investment platform, iWeb gives users a well-rounded investment platform. The variety of accounts that are on offer are tailored to help you easily build up an investment portfolio and secure your financial future.
The share dealing account is a solid option for traders looking for a platform that enables online share dealing with multiple investment options such as exchange traded funds and mutual funds.
The competitively priced SIPP account is the other main account that can help you invest in your future with a private pension plan that can be set up at no cost and has tiered fees depending on the amount invested.
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