The Complete Guide to IG ISA Fees

This guide is for UK savers and investors who use (or plan to use) an IG Stocks & Shares ISA and want a clear, actionable breakdown of every fee that might affect returns. You face a shifting fee landscape: IG’s pricing has changed and different account types carry different costs. You need one source that lists each charge, shows concrete numbers, and gives step-by-step ways to reduce what you pay. Read on to learn every fee (commissions, custody, Smart Portfolio, fund management, FX and transfer charges), see worked examples using real fees, and follow a checklist to cut costs.

Quick answer / TL;DR — key takeaways upfront

• IG ISA base takeaway: commission-free dealing on UK and US shares — pay £0 per trade for those markets; stamp duty (SDRT) at 0.5% still applies on UK share purchases.
• Platform / custody takeaway: platform and custody fees have been removed for many ISA and GIA accounts — verify your account type because historical £24 per-quarter custody rules may still appear in older paperwork.
• Smart Portfolio takeaway: managed portfolios charge 0.5% per year (capped at £250 per year) plus underlying fund costs (example: 0.13% management + 0.09% transaction costs).
• Transfer / special charges: expect occasional one-off fees — e.g., £100 + VAT per physical share certificate transferred in.

Fee breakdown: 6 core charges to know

List the six core fee types you must understand: dealing commissions, custody/platform fees, Smart Portfolio management fee, fund management charges, transaction costs, and transfer/administration charges. Check each line item before you invest. Each fee has a different drag on your returns.

• Dealing commissions: many ISA accounts offer £0 commission for UK and US shares. For other markets, commissions may apply; check per-market rates. Example: £0 per trade for UK/US; overseas trades may be a percentage or fixed fee.
• Custody/platform fees: historically IG showed £24 per quarter, which could be waived if you made 3 or more trades in that quarter. Now many ISAs/GIAs show £0 platform fee. Verify your account statement for a current balance. Example: £24 per quarter vs £0.
• Smart Portfolio management fee: IG charges 0.5% per year, capped at £250. Example: on £20,000 that is £100 per year; on £100,000 the cap means you pay £250 not £500.
• Fund management charges: example underlying fund mgmt 0.13% TER (total expense ratio). TER (total expense ratio) is the annual fund cost taken from the fund.
• Transaction costs: example transaction costs 0.09% inside funds; these are separate from TER and cover trading within the fund.
• Transfer/administration charges: example fee of £100 + VAT per physical share certificate transferred to IG. Other admin tasks often incur fixed fees.

Why each fee matters:
– Compound drag: 0.5% per year reduces compounded returns. Compare 0.5% vs 0% over a 10-year period to see material differences. Use concrete examples: on a starting balance of £10,000 growing at 6% annual gross return, a 0.5% additional fee reduces your end value by several hundred pounds.
– Hidden vs explicit fees: fund TER (0.13% example) is less visible than platform fees. Add transaction costs (0.09%) and management fees (0.5%) to get a true ongoing charge.
– Cash drag: idle cash in your ISA may earn lower interest than investments. Example: IG may pay a variable cash interest; compare that to 0.5% portfolio fees and a 0.05% ETF TER.

Watch out for marketing phrases like “no account fees.” Read the small print on your account type and market exceptions. Check at least these documents: fee schedule, key information document, and your account statement. Verify 2–3 places to confirm the numbers.

Account types: 4 IG account variants and their fee profiles

Identify the main IG account types you’ll encounter: Share-dealing ISA, Smart Portfolio ISA (managed), SIPP, General Investment Account (GIA). Pick the account that matches your needs and fee tolerance.

Share-dealing ISA
– Typical fees: £0 commission for UK and US markets for many accounts. Platform/custody often shown as £0, but older docs list £24 per quarter waivable with 3 trades.
– Use it if you want direct stock exposure and low trade costs. Example: buy UK share for £1,000; commission £0 but stamp duty 0.5% = £5.

Smart Portfolio ISA (managed)
– Typical fees: 0.5% management fee, capped at £250 per year. Underlying costs example: fund mgmt 0.13% + transaction costs 0.09%.
– Use it if you want hands-off management. Example: £20,000 invested yields £100 per year in management fees plus roughly £44 in fund/transaction charges.

SIPP (pension)
– Typical fees: example headline admin fee £210 per year. Dealing fees or fund fees may also apply depending on assets.
– Use it for a pension wrapper if you accept a fixed admin fee and tax relief rules.

General Investment Account (GIA)
– Typical fees: similar to Share-dealing ISA for dealing charges; no tax wrapper. Example: £0 commission for UK/US markets; fund fees apply as usual.
– Use it when you’ve exhausted ISA allowance or want taxable flexibility.

Pick Share-dealing ISA if you want DIY, low-cost direct investing. Pick Smart Portfolio if you prefer a managed approach and accept 0.5% fee. Pitfall: don’t assume SIPP inherits the same commission-free benefits without checking SIPP-specific charges. Confirm three things for each account: dealing commission (numeric), ongoing platform/custody charge (numeric), and fund TER or management fee (numeric).

Smart Portfolio costs: 3 key numbers and what they mean for returns

State the three headline numbers to monitor: 0.5% management fee (capped £250), 0.13% fund management, 0.09% transaction costs.

Show a simple worked example:
– Invested amount: £20,000.
– Management fee: 0.5% = £100 per year.
– Fund management: 0.13% = £26 per year.
– Transaction costs: 0.09% = £18 per year.
– Total annual cost: approx £144 = 0.72% of assets.

Explain cap mechanics:
– Cap: £250 maximum management fee per account per year.
– Break-even AUM where cap binds: divide cap by fee rate. Example: £250 ÷ 0.005 = £50,000. Above £50,000 you hit the £250 cap and your effective management rate falls.
– Effective rate at £100,000: management fee is capped at £250 = 0.25% effective on that balance, plus fund/transaction costs.

Describe scenarios where costs rise:
– Frequent rebalancing increases transaction costs beyond 0.09% example.
– Currency conversions for overseas holdings can add FX spreads or fees. Example: conversion spreads often exceed 0.5% of trade value.
– High turnover funds increase the transaction cost line; that can raise total ongoing cost to 0.9% or more in extreme cases.

Watch out for overlap:
– Platform marketing may say “no account fees.” The Smart Portfolio fee still applies. Always read the cost summary that lists 0.5%, TER (0.13%), and transaction costs (0.09%).

Trading costs and extras: £0 trades, stamp duty, FX and currency conversion fees

Lead with the headline: IG offers commission-free trading on UK and US shares for many ISA accounts — £0 per trade for those markets. Use this to keep dealing costs low.

Spell out extras and numbers:
– Stamp Duty Reserve Tax (SDRT): 0.5% on UK share purchases. Example: buy £2,000 of a UK stock; stamp duty = £10.
– Currency conversion: IG applies an FX spread or fee when converting between currencies. Example: FX spread can be variable; treat it as a hidden cost that may range from 0.2% to 1.0% depending on size.
– Overseas dealing: certain markets carry specific charges or commissions. Example: an overseas market might add a 0.25% fee or a fixed charge per trade.
– Deposits/withdrawals: typically £0 if no conversion is needed.

Give concrete trade example:
– Example: buy £2,000 of a US ETF in your ISA.
– Commission: £0 for many accounts.
– Currency conversion: assume 0.5% FX spread = £10.
– Total cost: £10 on top of the ETF’s TER and any home-country tax implications.
– Example: buy £1,000 of a UK share.
– Commission: £0.
– Stamp duty: 0.5% = £5.

Watch out for mini-fees:
– Some older agreements include a custody fee of £24 per quarter that was waivable with 3 trades. If you see this on paperwork, confirm it’s been removed.
– Special services can cost fixed fees. Example: transferring physical certificates costs £100 + VAT per certificate.

Use this checklist before placing a trade:
1. Verify market commission: is it £0 or a specified charge?
2. Check FX: will conversion apply and what is the spread?
3. Confirm stamp duty: 0.5% on UK buys.
4. Confirm custody status: do you have a waivable £24/quarter line in older docs?

How to avoid or cut fees: 5 practical steps you can use

Follow these five actionable steps to reduce your costs. Each step includes concrete numbers or examples.

1. Trade 3+ times per quarter to avoid historical custody fees.
2. If your older account still enforces £24 per quarter, make 3 trades to waive it.
3. Example saved per quarter: £24; per year: £96.
4. Use UK/US commission-free markets to keep dealing costs at £0.
5. Example: 12 trades per year at £0 saves you from potential £5–£10 commissions elsewhere.
6. Compare Smart Portfolio 0.5% vs DIY costs.
7. Example: DIY using low-cost ETFs with 0.05% TER plus £0 platform fee may be cheaper for large AUM.
8. If you value 0.5% active management, factor in expected outperformance before accepting the fee.
9. Avoid frequent small trades. Rebalance annually where possible.
10. Example comparison: 12 micro-trades vs 1 annual rebalance multiplies FX spreads and implicit costs.
11. Save by batching buys to reduce FX conversions and spreads.
12. Limit currency conversions and use broker FX tools.
13. Example: conversion spreads often exceed 0.5%; using a broker FX tool or holding sterling exposure avoids repeated conversions.

Checklist to run before a trade:
– Verify commission number for the market.
– Check FX conversion percentage or spread.
– Confirm stamp duty on UK purchases.
– Confirm custody/platform fee status on your account.

Watch out for behavioural traps:
– Overtrading just to hit “3 trades” to waive fees can cost you more. Example: making 3 unnecessary trades costing FX spreads of 0.5% on each trade may exceed the £24 saving. Trade only when there is a clear investment reason.

Transfers, paperwork and rare charges: 3 scenarios that cost money

Present three concrete scenarios and numbers you should expect in edge cases.

1. Transfer of physical share certificates to IG
2. Typical cost: £100 + VAT per certificate. VAT example at 20% means extra £20, so expect £120 total per certificate.
3. Timeline: processing often adds several weeks; certificate retrieval can add 2–6 weeks.
4. Forced manual processing or bespoke services
5. Typical cost structure: fixed admin fees rather than percentage fees. Examples: £25, £50, or £100 depending on the service.
6. Timeline: manual tasks can add 5–15 working days to processing times.
7. Transfer-out where your old provider charges exit fees
8. Old provider charge examples: fixed £25–£150 or percentage-based exit fees.
9. IG’s position: IG may accept transfers in without its own fee, but your former broker may bill you.

Describe timelines and steps:
– Transfers often take 7–30 business days for standard electronic transfers.
– Transfers involving share certificates or overseas registrars may take 30+ days.
– Get a written transfer cost schedule from both brokers before instructing a transfer.

Advise on steps:
– Request a transfer cost quote in writing from both brokers.
– Ask for estimated timelines in days.
– Keep evidence of any promised fee waivers or refunds.

Watch out for tax-wrapper issues:
– Partial transfers done incorrectly can affect your ISA allowance if you withdraw and re-subscribe instead of transferring. Confirm with IG before moving funds.

Comparison table section — quick fee snapshot across account types

Compare the common IG account options and the most relevant fees at a glance.

Use Share-dealing ISA for low-cost direct trading, Smart Portfolio for managed exposure at roughly 0.5% plus fund fees, and SIPP only if you accept a fixed admin fee.

Closing — How to choose / Bottom line decision tree

If you want low-cost DIY investing and trade UK/US stocks, pick a Share-dealing ISA. Expect £0 commission on those markets and minimal ongoing platform fees. If you want hands-off managed investing and can accept about 0.5% plus fund costs, pick Smart Portfolio ISA (0.5% capped at £250, plus roughly 0.13% fund mgmt and 0.09% transaction costs). If you need a tax-efficient pension wrapper and accept a fixed admin fee, consider a SIPP with an example £210 annual admin; confirm SIPP-specific charges first. If unsure, open a Share-dealing ISA, start small with a £500–£2,000 test allocation, then model the 0.5% Smart Portfolio cost against expected added value before switching.

Final checklist before you commit:
– Verify the commission number: £0 or specified amount.
– Confirm platform/custody fee: £0 or legacy £24/quarter.
– Confirm Smart Portfolio fees: 0.5% and £250 cap.
– Check fund TERs: 0.13% example and transaction costs 0.09%.
– Check transfer or special fees: £100 + VAT per certificate.

Follow these checks. Save money. Keep your returns higher.