Is Charles Stanley Direct good for investing?
28 Aug, 2023
Investment expert’s opinion
A solid option from a credible global player with a sister financial advice and portfolio management company. The DIY option has not developed in line with other competitors, although at 0.3% the charges are competitive for anyone with more than £20,000. They also offer a free 15 minute phone consultation to sense check your investment thinking, which is a nice touch. Hard to see any other area which is a standout for newcomers considering their options.
*This is the view of investment expert Holly Mackay based on her first-hand customer experience as a test account holder. This does not constitute regulated advice. You can read more about Holly's investments here.
Who is Charles Stanley
Charles Stanley Direct is an open investment platform that provides access to a range of investment options including shares, funds, ETFs, and investment trusts. It's a mid-sized investment platform administering around £3 billion in assets. The company has a long history in the financial services industry and recently updated its pricing structure in August 2024 to make its offering more competitive.
Who is Charles Stanley good for?
Charles Stanley Direct is suitable for:
- Investors with portfolios over £10,000 (due to the minimum £5 monthly fee)
- Those who value good customer service and phone support
- Investors looking for a broad range of investment options
- Those who appreciate quality fund research
- Beginner investors who would benefit from the 'Not sure where to start' function
- Investors considering Charles Stanley's own multi-asset portfolios
Pros and cons
Investments
Charles Stanley Direct offers a wide range of investment options:
Accounts
Charles Stanley offers a range of accounts. The table below shows a breakdown of which ones are available.
Stocks & Shares ISA | Private Pension (SIPP) | General Investment Account (GIA) | Lifetime ISA | Junior ISA |
✔ | ✔ | ✔ | ✘ | ✔ |
The Charles Stanley Direct Stocks and Shares ISA offers a tax-efficient way to invest with access to their full range of investment options. The platform fee is competitive at 0.30%, though the £5 minimum monthly fee applies across all accounts. Trading costs are £4 per fund and £10 per share trade, but the £50 trading credit every 6 months helps offset these costs for occasional traders. The 'Not sure where to start' feature is particularly helpful for less experienced investors.
The Charles Stanley Direct SIPP gives investors control over their pension investments with the same wide range of investment options available in other accounts. The pricing structure and trading costs are consistent with their other account types. For those looking for a simpler option, the Charles Stanley multi-asset portfolios could be a good choice, especially as they come with no platform or trading charges.
The Junior ISA follows the same pricing structure as other Charles Stanley accounts, making it a reasonable option for parents looking to build a nest egg for their children. The minimum initial investment is £500, or you can set up a regular monthly contribution of at least £50.
Fees and charges
Admin fee: 0.30% per year (reduced from previous 0.35%) Minimum fee: £5 per month (makes it expensive for portfolios under £10,000)
Trading charges:
- £4 per fund trade
- £10 per share trade
- £50 trading credit provided every 6 months (effectively covering the first 5 share trades or 12 fund trades)
Multi-asset portfolios: No platform charges or trading fees on Charles Stanley's own multi-asset portfolios. Total cost approximately 0.64% (fund charges only).
Minimum amounts:
- £500 minimum initial investment into a fund
- £50 minimum monthly payment for regular investments
Customer reviews
Charles Stanley Direct is well-regarded by customers, with 83% saying they would recommend the service. Out of 276 reviews, 43% gave a 5-star rating and 40% gave a 4-star rating, showing strong overall satisfaction. Customers particularly praise the quality of customer service and call center support. Common criticisms include the website navigation, which some users find confusing, and the basic nature of the app compared to competitors. Some customers also mention that they would like lower fees, though many find the current pricing reasonable for the service provided.
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They are not as good as they used to be, worried about them becoming Raymond James
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Most asked questions
Is Charles Stanley safe?
Cash savings with Charles Stanley are covered by the UK government’s Financial Services Compensation Scheme (FSCS), which guarantees reimbursement up to the value of £85,000 per person in the event that Interactive Investor fails. Any amount above this threshold is unlikely to be covered. Investments with Interactive Investor, on the other hand, are not guaranteed - by their nature, investments can and will go up and down in value.
Glossary
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Discover jargon-free definitions of the most common words and technical terms used in the world of investing.
Historically, money invested for more than five years grows more than cash savings. Remember that investments can also fall, so you might not get all of your money back. Tax treatment depends on individual circumstances and may change.
