Economy

CMC Markets launches flexible stocks and shares Isa

CMC Invest users can now open flexible shares and Isa shares on the platform with a new Plus subscription for just £10 a month

  • CMC Markets launched a do-it-yourself investment app in September
  • The Plus plan, which costs £10 a month, offers flexible shares and Isa shares
  • New customers receive a £50 welcome bonus and three months free

The products featured in this article have been independently selected by specialist journalists at This is Money. If you open an account through links marked with an asterisk, This is Money earns an affiliate commission. We will not allow this to affect our editorial independence.

The investment app market has been on the rise for some time, thanks in large part to the success of Freetrade and a growing demand for “democratizing” investments.

With platforms vying to become best-in-class, CMC Markets now wants a piece of the action.

In September, the company, which mainly offers spread betting and CFDs, was launched CMC Invest to offer clients stock trading in the UK and US.

Previously, a general investment account (GIA) was the only option to invest via the app, now investors can open an Isa.

CMC Markets launched its investment platform in September as it appears to be benefiting from a growing pool of early-stage investors

The free core product still offers a GIA and trading in over 1,100 US stocks, 100 UK stocks, and over 300 ETFs and mutual funds.

The Plus plan, which costs £10 a month, allows customers to open flexible shares and Isa shares, meaning they can withdraw money from their account and put the money back in within the same tax year without affecting their their Isa benefit.

New customers get a £50 bonus and three months free on the Plus plan, one of the low-cost platforms’ most generous welcome offers.

Albert Soleiman, Head of CMC Invest UK said: ‘We want our clients to feel empowered to make choices that suit their own investment journey.

“A flexible share of Isa is not typically offered on other investment platforms – we are fortunate that our technology can provide this to clients, giving them more flexibility to invest how and when they want.”

The Plus plan also offers a US dollar wallet for those with a GIA, in addition to the standard GBP wallet that comes with all CMC Invest accounts.

This allows investors to convert cash into USD and hold it until it is necessary to purchase US stocks, which the platform says will save clients money on FX costs.

CMC Invest currently charges a 0.5 percent FX fee when converting from GBP to USD.

Investors who already have a GIA and/or shares of Isa can transfer their portfolio free of charge, but the existing provider may charge an exit fee.

The platform says it will soon introduce a Premium plan with a Sipp and other features, though it’s unclear at this stage how much it will cost customers.

How does CMC Invest compare to other platforms?

The market for low-cost investment platforms has become increasingly crowded in recent months.

AJ Bell announced the launch of his own investment app Dodl this year as it competes against Freetrade and Trading 212.

Like CMC Invest, it’s free to open a Dodl account, but it charges 0.15 percent of the value of investments on each account per year. It is paid monthly and is a minimum of £1 per month.

This year Free trade* over 1 million subscribers thanks to the generous referral program and cheap plans.

The Basic plan offers a GIA, commission-free trades, and US fractional shares for free, but only 1,500 shares are offered.

The Standard plan costs £4.99 per month and customers can open a GIA and share Isa, although this is a standard Isa and not the flexible one offered by CMC.

Freetrade also offers a Sipp for Plus customers, which costs £9.99 per month.

Interactive Investor has also recently lowered its stock and fund transaction fees to stay competitive.

In September, the standard online trading fees for transactions in the UK and US were reduced from £7.99 to £5.99 for ii’s standard Investor Plan* as well as the Pension Builder Sipp plan.

Compare the best DIY investment platforms and stocks Isa

Best Savings Rates Top Deals From Savings Platforms

Online investing is simple, cheap and can be done from your computer, tablet or phone at a time and place that suits you.

When it comes to choosing a DIY investment platform, stock Isa or a general investment account, the range of options seems overwhelming.

Each provider has a slightly different offering, charging more or less fees for trading or holding stocks and giving access to a different range of stocks, funds, and mutual funds.

When weighing up the right one for you, it’s important to look at the service it offers, along with handling fees and transaction fees, plus any other additional fees.

To help you compare investment accounts, we’ve put together the facts and put together a comprehensive guide to choosing the best and cheapest investment account for you.

We highlight the key players in the table below, but we encourage you to do your own research and consider the points in our full guide linked here.

>> This is Money’s full guide to the best investment platforms and ISAs

The platforms below have been independently selected by This is Money’s specialist journalists. If you open an account through links marked with an asterisk, This is Money earns an affiliate commission. We will not allow this to affect our editorial independence.

DIY INVESTMENT PLATFORMS AND STOCKS & STOCKS ISAS
Management fees Loads notes Fund trading Default share, trust, ETF trading Invest regularly Dividend reinvestment
AJ Bell YouInvest* 0.25% Max £3.50 per month for stocks, trusts, ETFs. £1.50 £9.95 £1.50 € 1.50 each More detail
Bestinvest* 0.40% (0.2% for pre-built portfolios) Account fees reduced to 0.2% for turnkey investments Free £4.95 Free for funds Free for income funds More detail
Charles Stanley directly 0.35% No share platform fees on any transaction in that month and an annual cap of £240 Free £11.50 na na More detail
Fidelity* 0.35% on funds £45 fee up to £7,500. Max £45 per annum for stocks, trusts, ETFs Free £10 Free funds £1.50 shares, relies on ETFs £1.50 More detail
Hargreaves Lansdown* 0.45% Capped at £45 for stocks, trusts, ETFs Free £11.95 £1.50 1% (£1 min, £10 max) More detail
Interactive investor* £9.99 per month or £12.99 for Sipp £5.99 a month back in trade credit £5.99 £5.99 Free £0.99 More detail
iWeb £100 one-off £5 £5 na 2%, up to £5 More detail
Free trade* Free for standard account £3 month for Isa Freetrade Plus with more investment is £9.99/month inc. Is a fee No funds Free na na More detail
Forefront 0.15% Only Vanguard Funds Free Free Vanguard ETFs only Free na More detail
(Source: ThisisMoney.co.uk June 2022. Administration fees quoted annually may be monthly or quarterly)

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Jacky

The author of what'snew2day.com is dedicated to keeping you up-to-date on the latest news and information.

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