Is Scottish Widows good for investing?
Independent review by Boring Money
Written by Boring Money
7 Feb, 2025
N.B. Prior to January 2026, Scottish Widows operated under the IWeb brand
Investment expert's opinion
Scottish Widows is cheap as chips and a no frills offer which will suit more confident investors who don’t care about bells, whistles, fancy apps, or fancy tools. There is no account fee and it costs a fiver to trade. The website is very basic and it won't win any design prizes. But it's backed by the Lloyds Banking Group which will reassure some, and unless you are a compulsive trader, it will always be one of the cheaper options in town.
*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 Scottish Widows?
Scottish Widows is an online investment platform aimed at “trade-savvy people who are looking for the best possible price on share dealing”. It was founded in 1978 and has been part of the Lloyds Banking Group – that's Lloyds the high street bank – since 2005. It currently has £5.17 billion of assets under administration.
Who is Scottish Widows good for?
Scottish Widows is a good service for investors who are looking for an exceptionally low-cost option – even if that comes with a less flashy website and no mobile app. Sign-up is free, making Scottish Widows among the cheapest investment providers on the market right now. It’s geared slightly to more experienced investors who know what they’re doing but is not for those who like a good digital experience.
Pros and cons
Still not quite sure if Scottish Widows is right for you? We’ve broken down the main pros and cons in the table below. Take a look for a bird’s eye view of the key takeaways.
Investments
Scottish Widows users can access thousands of different investment options, including:
UK shares |
International shares |
Over 2,500 funds |
ETFs |
Investment Trusts |
Accounts
Stocks & Shares ISA | Pension (SIPP) | General Investment Account (GIA) | Lifetime ISA | Junior ISA |
✔ | ✔ | ✔ | ✘ | ✘ |
Fees and charges
The cost of investing with Scottish Widows differs depending on which type of account you have and how many trades you execute. However, the overall cost is typically very low with no annual account charge for the ISA or Share Dealing Account.
Scottish Widows ISA and Share Dealing Account fees
Fee Type | Amount |
Annual Account Charge | FREE |
UK Trading and Funds | £5 per trade |
International Trading | FREE |
FX Fee | 1.5% |
Transfer Charge | FREE |
Scottish Widows SIPP fees
Fee Type | Amount |
Quarterly Account Charge | £22.50 up to £50,000 |
UK Trading and Funds | £5 per trade |
International Trading | FREE |
FX Fee | 1.5% |
Transfer In Charge | £60 per transfer (capped at £300 overall) |
Transfer Out Charge | FREE |
Annuity Purchase | £90 |
Flexi-access drawdown fee | £180 per year |
There are additional trading fees that may apply depending on the nature of your transaction, including a 2% dividend reinvestment charge (capped at £5) and government taxes and levies such as UK Stamp Duty up to 0.5%.
What is TradePlan?
TradePlan is an automated trading tool which carries out your request to buy or sell an investment at a price which you set in advance. The idea is that it helps you to control the risk and “make the most of the rise and fall of the stock market” without having to constantly keep an eye on share prices.
There are a range of TradePlans on offer, including Limit Orders and Stop Losses, which allow you to set specific price thresholds for a trade to be executed. These can include setting a price to automatically sell a share when it drops lower than its current price – protecting you from sudden price falls.
There is a £2 fee to set up each TradePlan with a Share Dealing Account, but this charge is waived for ISAs and SIPPs. You can read the full details on TradePlans, how they work and how to set them up on the IWeb website.
Customer reviews
Scottish Widows is generally appreciated for its helpful customer service, clear communication, and ease of use. Users value the absence of management charges and the clear pricing structure, with a fixed trade price of £5. The platform is considered simple and suitable for beginners, with competitive dealing charges.
However, there are areas for improvement. Users suggest upgrading and modernising the platform interface, increasing the range of available investment products, and offering occasional deals on dealing charges. Some users have experienced issues with fund transfers and slow handling of interest and dividends. Additionally, there is a call for more interactive tools and better research functionality.
Overall, Scottish Widows is seen as a reliable and cost-effective service, but there is room for enhancement in platform features and customer service responsiveness.
Your opinion matters!
Leave a review for Scottish Widows
03 June 2026
Excellent stocks and shares ISA provider. The website might not be very flash and some of the tools are basic but I supplement this website with Yahoo/Google finance and DividendMax. What you're getting with this provider is consistency, reliability and low fees.
15 February 2026
Now has an app. Excellent value and easy to use. I have used it for years with no problems.
05 December 2025
Excellent dealing charges and fast updates
Most asked questions
Is Scottish Widows safe?
Scottish Widows is authorised and regulated by the Financial Conduct Authority (FCA). If a fund fails due to fraud or mismanagement, you may be eligible for compensation from the Financial Services Compensation Scheme (FSCS). The FSCS protection is capped at £85,000 per person, per fund manager (not per individual fund). However, if your investments lose value due to normal market conditions or your investment choices, this is part of the normal risk of investing and is not covered by FSCS compensation.
Who owns Scottish Widows?
Scottish Widows was acquired by Halifax in 2003, which was in turn acquired by the Lloyds Banking Group in 2009.
Does Scottish Widows have an app?
Scottish Widows does not have an app and the only way to use the service is via the website.
Glossary
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All information in this review correct as at 01/02/2025.
