I am starting my investment journey and looking into opening an ISA account

22 November 2021

Question by Veronica

Hi there,

I am starting my investment journey and looking into opening an ISAs account. I like ii but I keep reading that it is not a good choice for small portfolios. As far as I understand, there is no fee if you commit to a £25 monthly invest. Why is it a bad choice for a small portfolio then?

Many thanks


Answered by Boring Money

Hi Veronica,

If there is a no-fee offer, then it feels like they are no detriment for smaller portfolios. Usually smaller portfolios would be subject to a charge that represents a larger percentage of the overall portfolio, for example, £50 annual fee of a £1,000 ISA is bigger than £50 annual fee of a £5,000 ISA.

Please also look into the conditions of the £25pm (i.e. minimum duration & fees after this time etc). Also, it might be worthwhile reviewing the cost of the funds that you could choose to invest in, in addition to any platform costs.

Best wishes

Answered by

Boring Money