Switched brokers 4 times in 6 years—here's what actually matters vs what's just marketing
Broker comparison articles are usually written by people with affiliate links. I've actually moved my portfolio multiple times, so here's what I've learned about what matters when you're transferring real money.
What I've used:
Started with Hargreaves Lansdown (UK traditional broker), moved to Interactive Investor, then to Trading 212 for a small account, currently have most assets at Interactive Brokers with a legacy position still at II. Here's my experience with each.
Hargreaves Lansdown:
The good: Customer service is genuinely excellent. When I had complex questions about bed-and-ISA transfers, I got knowledgeable humans on the phone. The platform is reliable and well-designed. Research and fund analysis is comprehensive.
The bad: Expensive. FX fees of 1% on US trades destroyed me when I started buying US dividend stocks. Platform fee is 0.45% on funds. These costs compound significantly over time.
Who it's for: UK investors primarily buying UK funds or shares who value service and are willing to pay for it. If you're buying US stocks regularly, the FX fees are a dealbreaker.
Interactive Investor:
The good: Flat monthly fee (around £12) regardless of portfolio size. Once you're over about £40k, this becomes cheaper than percentage-based platforms. FX fees lower than HL. Good UK broker integration.
The bad: The platform feels dated. Mobile app is functional but clunky. Some order types aren't available. Customer service is fine but not as good as HL.
Who it's for: UK investors with larger portfolios who want to minimise fees. The flat fee structure rewards account size.
Trading 212:
The good: Genuinely free. No commissions, no platform fees, FX fees around 0.15%. Fractional shares. The app is modern and well-designed.
The bad: Limited account types (no SIPP). They make money through securities lending and the spread on CFDs—this isn't shady, but understand the business model. Customer service is email-only and can be slow. I'd be nervous holding a very large portfolio here.
Who it's for: Newer investors with smaller accounts who want to minimise friction. Good for taxable accounts, not available for pensions.
Interactive Brokers:
The good: The professional's choice for a reason. Lowest trading costs, best FX rates (actual interbank), access to global markets, sophisticated order types, powerful tools. If you're serious about investing, this is the platform.
The bad: The interface is notoriously complex. There are three different platforms (TWS, Client Portal, mobile) and they have different capabilities. Learning curve is real. Customer service is technical and assumes you know what you're doing.
Who it's for: Active investors, anyone buying international stocks regularly, people who want professional-grade tools and are willing to learn them.
What actually matters:
FX fees (if buying foreign stocks): This is the hidden cost that destroys returns. A 1% FX fee on a US stock trade means you're starting 2% down (1% to buy, 1% to sell eventually). Over years of trading, this adds up to thousands.
Platform reliability: Doesn't matter much until there's a market crash and the platform goes down when you need it most. All the brokers I've mentioned have been fine, but I've heard horror stories about smaller platforms.
Transfer process: How painful is it to move your positions elsewhere if needed? HL and II have good in-specie transfer support. Some platforms make it deliberately difficult.
What matters less than people think:
Commission-free trading: Most UK brokers are now very cheap per trade. The difference between £0 and £5 per trade matters less than FX fees or platform fees unless you're day trading.
Research tools: Nice to have, but you can get better research free elsewhere. Don't overpay for your broker because of research.
Pretty apps: I know, it feels nice to use a well-designed app. But your returns compound the same regardless of UI aesthetics.
Current recommendation based on situation:
Small portfolio, starting out: Trading 212
Larger portfolio, UK-focused: Interactive Investor
International stocks, active trading: Interactive Brokers
Value service above all: Hargreaves Lansdown
What brokers are others using? Any strong opinions on ones I haven't covered?
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