Best Sipps: How to pick the best (and cheapest) Sipp to build your pension investments

Investing in a pension is a far simpler task than it once was, with a whole host of mobile, online and face to face options available today.

Thanks to the rise of self-invested personal pensions, or Sipps as they are commonly known, it is possible to easily build and manage a retirement pot of shares, funds, investment trusts and other assets.

DIY investing platforms offer a range of online Sipps to investors, who can buy and sell investments from their computer – or even mobile phone – monitor their portfolio and benefit from pension tax relief.

An array of Sipps are on offer and the right one for you depends on what you plan to invest in and how you want to manage your money. Charges and services vary and the best Sipp is the one that fits your personal circumstances.

Using a Sipp to build your retirement nest egg gives you complete control of a comprehensive range of investments including stocks, bonds, funds and even commercial property 

In our guide below we look at what you need to consider and pick some of the best and cheapest Sipps for ordinary investors building up their pension wealth and seeking to draw income at retirement.

Check the tables for the brief details and read our full round-up of each platform’s features and who they could be good for further down the page. 

Why invest in a Sipp?

Many people simply save for their pension through work.

Pulling old pensions together 

A Sipp can also be a place to pull old pensions together. 

Most of us will work for different employers during our working lives and end up with a ragbag of old pension pots of varying sizes as a result. 

Left in an old employer’s pension scheme, your money can be at risk from higher charges and underperformance from being ignored.

An obvious remedy to this is to consolidate your old pensions (ones you no longer contribute to) into one easy-to-manage pension. Doing so through a Sipp allows you to run it as you see fit. 

For some lucky workers, it is still possible to be in a defined benefit scheme – often referred to as final salary – where an employer promises a set level of income in retirement. 

But for most people nowadays, work pension saving is done in a defined contribution scheme, where they and their employer put money into an investment pot.

This is a simple and straightforward way to build up a pension and benefit from employer contributions. 

However, not all work schemes offer a full range of investments and some people also like to save into a pension outside of work. Those who are self-employed must take responsibility for building up their own pot. This is where self invested personal pensions come in.

A Sipp allows you to invest into a wide range of shares, funds, investment trusts, ETFs, bonds and more. 

Sipps work in a similar way to investing in a standard account or a stocks and shares Isa, in that you typically manage your investments through an online platform.

The key difference is that you get tax relief on pension contributions at the rate you pay income tax, within the annual allowance of £40,000 (including basic rate tax relief) and lifetime pot allowances of £1,030,000. For higher rate taxpayers paying 40 per cent or even 45 per cent income tax, this is very beneficial. 

>> Find out more about how pensions work by reading our guide

Investing in a Sipp: How much do the top providers charge?
Provider Admin charge Charges notes Fund dealing (online) Standard share, trust, ETF dealing (online) Regular investing Dividend reinvestment
AJ Bell Youinvest £0 – £250k: 0.25%£250,000 – £1m: 0.1%
£1m – £2m: 0.05% Over £2m: free
Capped at £100 for Sipps for shares, ITs and ETFs £1.50 £9.95 (£4.95 if 10+ trades occurred last month) 1% (min £1.50, max £9.95) 1% (min £1.50, max £9.95)
Alliance Trust Savings £21 a month Includes 4 online trades per year £9.99 £9.99 £1.50 £5
Bestinvest £0 – £250k: 0.30%£250,001 – £1m: 0.20%
£1m + : Free
None Free  £7.50 N/A Free 
Charles Stanley Direct Sipp fee: £120 per year
Admin charge:  0.35% on the first £250k,
£250k – £500k: 0.20% £500k £1m: 0.15% £1m – £2m: 0.05% £2m +: Free
Admin fee waived for sums above £30,000. 25% per year (£24 min, £240 max per year) for Shares, ITs and ETFs Free  £11.50 No extra charge N/A
Close Brothers A.M Self Directed Service 0.25% If copy of contract note – £10 one off fee for each request Free  £8.95 max  Free  Free 
Fidelity Personal Investor £45 up to £7,500 a year or 0.35% via monthly regular saving plan. £7,500 – £250k: 0.35% £250k – £1m: 0.2% £1m +: free None Free  Shares – N/AETF/Investment trusts – 0.1% Rolled up in admin charge Free for fund dividend reinvestment
Halifax Share Dealing Quarterly fee of £22.50 up to  £50,000. £45 thereafter None £12.50 per trade via £12.50 per trade £2 per trade 2% (max £12.50)
Hargreaves Lansdown £0 – £250k – 0.45%£250k – £1m: 0.25%£1m – £2m: 0.10%
Over £2m free
0.45% a year (capped at £200) for Shares, ITs, ETFs, and bonds Free 0 – 9 deals: £11.95
10 -19 deals: £8.95
20 +: £5.95
£1.50 per stock a month 1% (£1 min, £10 max)
Interactive investor  
Investor Plan: £9.99 per month Funds Fan Plan: £13.99 per month Super Investor Plan: £19.99 per month
Investor Plan: One free trade per month
Funds Fan Plan: Two free trades per month
Super Investor Plan: Two free UK or funds trades per month 
Investor Plan: £7.99
Funds Fan and Super Investor plans: £3.99  
Investor Plan: £7.99
Funds Fan Plan: £7.99 for shares and ETFs, £3.99 for trusts
Super Investor Plan: £3.99 
99p 99p
iWeb Quarterly fee of £22.50 up to £50,000. £45 thereafterr None £5 £5 N/A 2% (£5 max)
James Hay Modular iPlan SIPP  fee: £179
Platform charge:  First £300k 0.25%, next £300k 0.20%, next £400k 0.15%, next £500k 0.05%, over £1.5m 0.01%
Sipp charge waived for assets over £200k Free N/A Free Free
Selftrade Sipp fee: £118.80
Admin fee: £12.50 +£4.99 per product per quarter
 
Funds Platform Fee: £0-£50k: 0.30% £50k – £250k: 0.25% £250k +: 0.15%
Max fund charge per quarter £250
Free on purchase. £10.99 levy on sales £10.99 for shares, investment trusts and bonds. £9.99 for ETF/ETPs £1.50 £1.50
The Share Centre  £172.80 None Standard dealing: 1% (£7.50 min) Frequent dealing: £7.50 Standard dealing: 1% (£7.50 min) Frequent dealing: £7.50  0.5% (£1 min) per transaction 0.5% per transaction
Willis Owen £0 – £50k: 0.6%
£50k – £100k: 0.4% £100 – £250k: 0.25% £250k +: 0.15%
None Free £7.50 per trade Free Free

Choosing a Sipp provider

When choosing a Sipp, the two main elements to pay attention to are cost and the quality of the service.

When it comes to judging service, it is a matter of personal choice. Some investors prefer lots of information, model portfolios, investment ideas and a slick digital operation and app to manage their money on. Others are happy with a simple service, as long as costs are low. 

Make sure you properly investigate a Sipp platform before signing up – and remember what’s inside when you login may not reflect the slick website outside, so if in doubt, ask to see a practice account.

Keeping costs low is important. With a long-term investment like a pension, charges can eat into your returns and reduce the amount of money you have left for retirement.

The good news is that better official scrutiny of investment costs, pressure from passive investing, and competition among DIY investment platforms have gone some way to reducing the price of investing. 

There are three main charges to consider when choosing your Sipp provider and these costs typically vary depending on what you invest in and the size of your pension pot.   

Administration and set up fees

This is the cost of having an account. Administration or platform fees are typically an annual charge, although they can be charged monthly or quarterly. 

Some charges are a percentage of investments and others are a flat fee. Generally speaking, percentage charges are cheaper for smaller pots and flat fees are more cost effective for larger ones.

Some platforms charge an additional fee to administer a Sipp account. A fee for transferring money into or out of a Sipp might also apply.

Many platforms have launched cashback offers for new customers, which can help fund moving your money to a better home.

Dealing charges 

Tip: Check other costs 

You also need to check the platform’s full list of other fees. 

Check for regular monthly investing discounts, dividend reinvestment fees, transfer charges and other elements.

And beware exit fees if you decide to leave. 

Also look at how much interest may get paid on cash and extras such as getting paper statements, or converting your fund into pension income through an annuity.

 

 

This is the cost of buying and selling investments.

Some platforms offer free trades for funds but not for investment trusts, ETFs, shares and directly traded corporate bonds. Others will make you pay for both.

Platforms have tended to fall into two camps: those charging a percentage fee with free or cheaper fund dealing and those charging a flat fee with fund dealing charges.

What you intend to buy and how often, as well as the size of your pot will decide what is right for you.

Look out for special lower costs for regular monthly investing. This can shave off substantial sums. 

Fund manager and other fees

You’ll also have to account for ongoing charges levied by fund managers, or the firms running investment trusts or ETFs.

Some Sipp providers negotiate cheaper fund deals for their investors. 

Ultimately, you can’t avoid these if you want a fund or investment trust but you may be able to trim them.  

Don’t just focus on cost 

To find the best Sipp provider for your personal circumstances, you must consider more than just cost. 

When weighing up the right one for you, it’s important to look at the investments on offer.

Not all platforms facilitate the purchase of shares and investment trusts, but some will offer ready-made portfolios based on your level of risk or goals which means you don’t have to worry about fund or stock selection.

If you are the type of investor who would value the ability to trade investments quickly and easily through a mobile app or online, check that your provider offers this before opening an account. 

What’s more, it also worth at having a look at the level of service on offer. Some platforms offer extra tools and guidance, like fund ratings, that may make it worth paying a bit more. 

Choosing the best Sipp to draw income at retirement

Saving for retirement is only one half of the story. You’ll eventually need the cash to fund everyday expenses as well as luxuries at retirement.

Thanks to pension freedoms implemented in 2015 there are now four ways in which you can access your retirement nest egg once you reach the threshold age of 55 (expected to rise to 57 in 2028). 

1. Annuity 

Taking out an annuity was a popular option before the introduction of the pension freedoms. This financial product, which can purchased from a number of insurance companies through most platforms, converts your pot into income that lasts for the rest of your life. 

The level of income is determined by the size of your pot and your circumstances.

Crucially, when it comes to annuity purchases, you can’t change your mind.

2. Income drawdown

Annuities may still prove the best option for some. The guaranteed income for life is a major draw, but annuities are widely considered poor value for money at the moment. 

Many pensioners have instead opted to invest their pot in a drawdown scheme where nest eggs remain invested while providing an income to finance life at retirement.

The lure here is the potential for the value of the pension pot to grow further still by keeping it invested. The trade-off is the opposite can happen if your investments take a turn for the worse.

Other than the 25 per cent tax-free sum, your pension income is taxed when you withdraw money from it. 

3. Uncrystallised funds pension lump sum

The pension freedoms introduced a new, flexible way of accessing your pension at retirement. You could leave money in your pension untouched and make withdrawals when you need to.

This is referred to as uncrystallised funds pension lump sum (UFPLS) or a ‘FLUMP’ as it’s known in the industry.

In this method, 25 per cent of each lump sum withdrawn is tax free, with the remainder subject to income tax at your marginal rate.

4. Mix and match 

You’re not limited to one method when it comes to accessing your pension. You can choose a combination of options to suit what you want to do with your retirement.

If you plan to ease into retirement, you may choose to take some money flexibly and then later tie up your pot in an annuity to provide you with a steady income to fund regular outgoings. 

Most platforms charge a fee to access your pension pot at retirement. Again, costs can significantly erode the value of your pension so it is important to keep a handle on these.

Remember, you do not have to remain loyal to the platform you’ve built your nest egg on once you reach retirement and start taking income from the pot.

If another charges less to transact your chosen method/s of taking income at retirement, transferring could be the most economical option. 

Many platforms levy a charge to transfer out, so it is important to factor these in before making any decisions. But, as mentioned before, a lot of platforms have launched cashback offers for new customers which can subsidise or nullify the cost of moving. 

We have produced a table (below) exploring the key costs levied on Sipp accounts to draw income from a pension at retirement, and to transfer to a different provider. 

Income drawdown, uncrystallised funds pension lump sum and annuity charges
Provider Admin charge Starting drawdown Regular income payments Uncrystallised funds pension lump sum (per payment)  Annuity purchase  Transfer out (as cash) Transfer out (as stock)
AJ Bell Youinvest Same as accumulation admin charge  Free £120 per year £30 £150  £75 + VAT £25 per holding + £75 + VAT
Alliance Trust Savings £28.50 a month Free Free £48 £216 capped at 1% for plans predating 1 February 2017 or the client is aged under 55. Free otherwise. £180 capped at 1% N/A 
Bestinvest Same as accumulation admin charge £0 – 100k: £120
£100k +:£108
£0 – 100k:£120
£100k +: free
£25 £90 if through Bestinvest £180 if external £90 £180
Charles Stanley Direct Same as accumulation admin charge £180 £60 £30 N/A  £150 £150 & £10 per holding
Close Brothers A.M Self Directed Service Same as accumulation admin charge £60 £60 £60 2% or 3% dependent on type  Free Free
Fidelity Personal Investor Same as accumulation admin charge Free Free Free N/A  Free Free
Halifax Share Dealing Same as accumulation admin charge  £180 a year  Free £90  N/A  £90 £90 + £25 per investment (max £215.00)
Hargreaves Lansdown Same as accumulation admin charge  Free Free Free Free  £25.00 £25 per holding
Interactive investor Same as accumulation admin charge  £10 per month  Included in drawdown fees  £50 + VAT £75 + VAT  N/A N/A 
iWeb Same as accumulation admin charge £180 per year Free £90 N/A  £90 £90 + £25 per investment (max £215)
James Hay Modular iPlan Same as accumulation admin charge £100 £154 £154 N/A  £100 £150
Selftrade Same as accumulation admin charge £180 Free Free N/A  £90 £90 as well as £15 per holding
The Share Centre Same as accumulation admin charge £234  Free £270 (as 2nd payment event in a year) £210  £120 £120 plus £25 per dealing account
Willis Owen Same as accumulation admin charge £132 Free Free N/A  Free Free

How we choose the best Sipps

We have picked out some of the top Sipps for everyday investors below and focused on two vital aspects, cost and quality. 

This is not a collection of all of the absolute cheapest platforms, these are some we think stand out and that also compete keenly on price. 

This list is in no particular order

Hargreaves Lansdown 

Hargreaves Lansdown is the UK’s biggest DIY investing platform. 

For Sipps, Isas and standard accounts, its investors pay a 0.45 per cent fee on their total fund investments up to £250,000; 0.25 per cent to £1million, 0.1 per cent to £2million and nothing above that. 

Shares and investment trusts also incur a 0.45 per cent charge on the entire holding, capped at £45.

Hargreaves has negotiated some reduced annual management charges from fund managers.

Fund dealing is free. Share, investment trust, corporate bond and ETF dealing costs £11.95 per trade. If you trade more than 10 times per month share-dealing costs step down. Regular monthly share and some investment trust investing is £1.50, dividend reinvesting is 1 per cent, with a £1 minimum charge and £10 maximum.

There’s no charge to set up drawdown with Hargreaves, and you can start, stop or change your income withdrawals whenever you want, without charge.

There is also no additional cost to get a quote or purchase an annuity and UFPLS payments are free of charge.

Hargreaves has its very influential Wealth 50, a range of Master Portfolios, and its Portfolio+ service to make investing progressively easier and more hands off 

Who is it good for? 

Those looking for an advice-rich service that is price-competitive but not the cheapest around. It does come with lots of bells and whistles, including a very good app and portfolios for easy investing. 

It offers a proven popular service weighted towards funds but with access to investment trusts, ETFs, shares and the corporate bond market under one roof. [More details on Hargeaves Lansdown

AJ Bell Youinvest

AJ Bell Youinvest has a 0.25 per cent annual administration charge. However, for non-fund holdings in Sipps, such as investment trusts, shares and ETFs, this is capped at £25 per quarter.

For fund holdings it steps down to 0.1 per cent from £250,000 to £1million, 0.05 per cent to £2million and then nothing above that.

Fund dealing costs £1.50, while share, ETF and investment trust dealing incur a £9.95 charge – or £4.95 if you have traded 10 times in the previous month.

The platform also charges a flat fee of £1.50 per deal for regular investing and the same amount to reinvest dividends.

What’s more, entering drawdown is free, but regular income payments are levied at £120 per year and UFPLS cost £30.

There is no charge for annuity quotes but purchases cost £150.

Who is it good for? 

AJ Bell Youinvest scores with a low percentage admin charge that is also capped for shares, trusts and ETFs. Its fund dealing charge is reasonable and there is cost effective regular monthly investing in funds, shares and selected investment trusts. 

There is no cheap dividend reinvestment. [More details on AJ Bell Youinvest]

Interactive Investor

When can I take money from my pension? 

At present, the age at which you can access your private pension is 55.

The State Pension age is rising and it’s set to reach 67 by 2028.

The UK doesn’t have a default retirement age anymore, so you can choose when to retire.

Interactive Investor introduced new monthly fee plans in June 2019, ranging from £9.99 to £19.99 per month but with an extra £10 added for Sipps.

This charging replaced its old quarterly fee and means the cheapest Sipp option costs £19.99 per month or £239.88 per year.

There are three plans that can be chosen according to your investment style: Investor, charging £9.99 a month, Funds Fan charging £13.99 a month, and Super Investor charging £19.99 a month. For Sipps, an additional £10 per month applies to each.

With each plan you get £7.99 of trading credit per month, with different charges to buy or sell applying.

The total annual cost for a Sipp under the Investor plan would therefore be £239.88, some £287.88 for the Funds Fan plan and £359.88 for the Super Investor plan. On a £50,000 pension pot that equates to between 0.48 per cent and 0.72 per cent and on a £100,000 pot it would be between 0.24 percent and 0.36 per cent – making it better value for investors with larger pots.

In the Investor plan, trades in UK shares, funds and investment trusts and US shares are charged at £7.99 each but investors can get £7.99 of trading credit per month, which lasts for 90 days.

For Funds Fan investors, the same costs apply but trades in funds and investment trusts are charged at £3.99 each. Investors get two free fund and investment trust trades per month.

In the Super Investor plan, trades in UK shares and funds and investment trusts are £3.99 each, £4.99 for US shares, and investors get two free UK trades per month.

Trading in other international shares is £19.99 for the Investor and Funds Fan plans and £9.99 for the Super Investor plan. Dividend reinvestment and regular investment is just 99p for all plans.

There is no charge to transfer in or set up your Sipp and until 2 August, investors can get up to £4,000 cashback if they transfer their Sipp to Interactive Investor from their existing provider. Minimum transfer of £25,000 and eligibility terms apply.

There is a drawdown fee of £10 per month which includes regular payments and is payable even if ‘nil’ income is selected in any year. UFPLS cost £50. The platform offers a £75 plus VAT annuity purchase service.

Who is it good for?

The great advantage of Interactive Investor is that you can get your costs back in free trades. Use this to the maxmimum and monthly plan charges are as little as £2 but Sipp investors must factor in the extra £10 that takes it up to £12.

Outside of that element, the platform’s flat fee charging structure suits those with larger amounts, by comparison with percentage based charges that equate to a larger monetary amount for bigger portfolios.

Interactive’s platform is easy to use and offers a wide range of investments include funds, shares, investment trusts and ETFs along with solid research and is good for those regularly investing. The model portfolios on offer are well researched and a cheap and easy way to invest. It has an app but this has poor ratings online. [More details on Interactive Investor]

Alliance Trust Savings 

Alliance Trust Savings is currently in the process of merging with rival platform Interactive Investor after the latter bought the company last year.

It offers access to the full run of funds, investment trusts, shares, ETFs and direct bonds available. Investors using it can access research and tools with their portfolio.

Investors pay a flat fee of £21 per month but get four online trades per year included. The £252 annual cost equates to 0.5 per cent on a £50,000 pot and 0.25 per cent on a £100,000 pot.

Buying funds, shares, ETFs and investment trusts cost £9.99 per trade. However, doing this as a regular monthly online direct debit investing slashes the charge to £1.50 per deal, while dividend reinvestment costs £5.

Those who have held an account with the platform for more than five years qualify for a loyalty discount when it comes to buying and selling investments. This discounted cost scales down from £8.99 to £7.49.

Once you start taking an income at retirement, the platform ups the admin fee to £28.50 a month, however, there is no charge to enter drawdown or make regular withdrawals.

UFPLS costs £48.

Annuity quotes are not available through the platform. A purchase costs £180 (capped at 1 per cent) for plans predating 1 February 2017 or if the client is aged under 55. Free otherwise.

Who is it good for? 

Buy-and-hold investors with large sums invested could do well here as there is a flat fee rather than a percentage charge. However, they need to weigh up the dealing costs, as Alliance Trust charges £9.99 to buy and sell funds.

Investors can buy trusts, shares, corporate bonds and ETFs and it is good for monthly regular investors in these too, although dividend reinvestment is pricey. [More details on Alliance Trust Savings].

Bestinvest

Bestinvest offers a selection of risk-rated model portfolio funds and boasts solid research.

Sipp clients pay an annual admin charge of 0.3 per cent on their portfolios up to £250,000, 0.20 per cent to £1million and nothing thereafter.

The platform has no dealing charges for funds and standard share and investment trust dealing cost £7.50. There is no fee to reinvest dividends.

The platform levies a number of costs once you start taking income but it varies depending on the value of your savings.

The cost to start drawdown is £120 for sums up to £100,000 and £108 thereafter.

For regular income payments the platform charges £120 on balances under £100,000 but waives fees for larger pots.

A £25 charge also applies to UFPLS.

Purchasing an annuity costs £90 if through Bestinvest and £180 if external.

Who is it good for? 

BestInvest is a good option for fund investors looking to take advantage of its research and lack of dealing charges.

Those buying shares, investment trusts and ETFs benefit from a £7.50 dealing fee, which is lower than most. The ready-made portfolios offer an easy hands-off route into investing at a reasonable cost. 

However, the cost of income drawdown is notably high for those with a nest egg valued at less than £100,000 at retirement. [More details on Bestinvest]

Fidelity Personal Investor

Fidelity is one of the big investing names and has a platform packed with useful information, guides, market commentary and videos.

The admin fee is £45 up to £7,500 per year or 0.35 per cent if you have a monthly regular saving plan. The standard charge is 0.35 per cent, on sums up to £250,000, 0.2 per cent to £1million and then is nothing for sums above that amount.

You can’t trade shares on the platform but you can buy and sell investment trusts and ETFs at the cost of 0.1 per cent. There are no fund dealing charges for buying and selling.

There is no charge to enter drawdown or withdraw cash as a UFPLS. The platform does not facilitate annuity purchases.

Who is it good for? 

Fidelity offers a very useful service. It is one of the big guns, has model portfolios, tools to help you decide how to invest and a wealth of information on offer. 

The inability to buy shares will be a major drawback for some investors, though.

One major attraction was the cheap 0.1 per cent dealing for ETFs and investment trusts, although be warned for Isa and standard account customers this was recently raised to £10. [More details on Fidelity Personal Investor]

Watch out for transfer charges and other fees from investing platforms, as well as dealing and admin charges

Watch out for transfer charges and other fees from investing platforms, as well as dealing and admin charges

Charles Stanley Direct

The broker’s online platform Charles Stanley Direct platform charges £120 a year on Sipp investments. The fee is waived for customers that hold £30,000 or more of assets across all Charles Stanley Direct accounts.

The firm’s usual platform charges on fund holdings also apply. These are 0.35 per cent on first £250,000, 0.2 per cent between £250,000 and £500,000, 0.15 per cent to £1million and 0.05 per cent to £2million.  

Fund dealing is free, but investment trust and share dealing will cost £11.50 and there is no regular investing option for this. 

Starting drawdown costs £180 and you’d pay £60 to make regular income payments and £30 to take a UFPLS.

The platform does not facilitate annuity quotations and purchases. 

Who is it good for? 

Those buying and holding investment trusts and shares can also do well here if they trade each month and lose the platform fee, but that needs to be weighed up against £11.50 dealing charges adding up and the lack of a cut-price regular monthly investing option. [More details on Charles Stanley Direct]

The Share Centre 

The Share Centre allows investors to hold funds, investment trusts, shares, ETFs and corporate bonds, and charges a yearly admin fee of £172.80.

On a £50,000 pot the £172.80 charge is the equivalent of 0.35 per cent, while on a £100,000 pot it is 0.17 per cent. 

Fund, share, ETF, investment trust and corporate bond dealing costs 1 per cent (£7.50 min). Alternatively, if you pay an extra £24 a quarter, there is a flat £7.50 charge with its trader option. 

Regular monthly investing in funds, shares, ETFs, trusts and bonds costs 0.5 per cent (minimum £1).

Dividend reinvestment costs 0.5 per cent per transaction (min £1). 

When it comes to decumulation, starting drawdown costs £234 but there is no charge for regular income payments. UFPLS withdrawals would set you back £270 (as a second payment event).

There is no annuity quotation service and the platform levies £210 to buy one. 

What happens to your money if the platform goes bust?

In the unlikely event that your investment platform goes bust, your money should be OK as it would remain with the fund manager or bank it resides with. 

The protection applies should any of those go into default.

If the authorised investment firm of a fund, investment trust or other investment vehicle you’ve put money into goes bust, you’re eligible to get your money back, up to a maximum of £50,000 (set to increase t £85,000 in April 2019) through the Financial Services Compensation Scheme.

If you hold some money as cash within your Sipp, you’re covered under under the scheme up to £85,000.

Who is it good for? 

For those with large sums invested, the Sipp could prove good value compared to percentage-based charges even when dealing fees are taken into account.

The platform is good for stock pickers who reinvest dividend shares, trusts or ETFs and investors looking for a variety of investments, with some good analysis, tips and advice. [More details on The Share Centre]

Selftrade 

Selftrade hosts a range of investments including funds, bonds, shares investment trusts and ETFs and boasts a wealth of research and insight.

It has somewhat confusing charging. 

The admin fee on the Sipp account is £118.80 but that is on top of a £12.50 quarterly custody fee, plus an additional £4.99 per product per quarter (Sipp, Isa or investment account).

If you just have a Sipp, you would pay £118.80 plus £17.49 (£12.50 plus £4.99) per quarter, which adds up to £188.76. That is the equivalent of 0.38 per cent on a £50,000 pot, or 0.19 per cent on £100,000.

But there is also an annual admin fee to hold funds of 0.30 per cent for sums up to £50,000, 0.25 per cent to £250,000 and 0.15 per cent thereafter. The maximum fund charge is per quarter £250.

Buying funds through the platform is free but sales command a £10.99 charge. The same fee applies to dealings in shares, investment trusts and bonds, but trading ETFs is slightly cheaper at £9.99.

Regular fund dealing and dividend reinvestment cost £1.50 each. 

At retirement, the cost to enter drawdown is £180, but there is no cost for taking regular income or UFPLS withdrawals. The platform does not have an annuity quotation or purchase facility.

Who is it good for?

Investors could be forgiven for being somewhat baffled by Selftrade’s selection of fees that they have to tot up. Overall it could be cost effective on larger pots due to the fixed element, but you also need to take into account those fund fees. 

Novice investors could also benefit from investment research on the platform as well as access to free events and seminars. [More details on Selftrade]

> Take our retirement quiz to see which option may be best for you 

Halifax Share Dealing and iWeb

The Halifax Share Dealing and iWeb platforms are run by Halifax. 

Both charge a quarterly fee of £22.50 on Sipp values up to £50,000 or £45 for larger pots.

The difference between the two firms is how much they charge for buying and selling investments. Halifax charges £12.50 for occasional fund and share trades, but this falls to £2 if you choose the ‘regular investor’ option and agree to invest at least £20 a month. iWeb charges £5 per trade.

The charge for dividend reinvestment is 2 per cent with a maximum of £12.50 and £5 on the Halifax Share Dealing and iWeb platforms respectively.

At retirement, both platforms levy £180 a year to start drawdown but regular income payments are free. A £90 charge applies to UFPLS withdrawals. 

An annuity quotation or purchase service is not offered by either platforms. 

Who is it good for? 

Halifax Share dealing offers relatively low commission rates for regular investors.

iWeb is cheaper overall on dealing and has proved popular in the basis of its £5 charge to buy and sell. It is a no-frills platform but offers a wide variety of investments which don’t cost too much to trade. This platform is good for someone already well versed in investment looking to keep platform costs to a minimum and are not making too many fund transactions. [More details on Halifax Share Dealing and iWeb]

Willis Owen 

Willis Owen’s Sipp offer access to a host of funds, shares, ETFs and investment trusts. Its yearly admin fee scales down from 0.6 per cent for sums up to £50,000, 0.4 per cent to £100,000, 0.25 per cent to £250,000 and 0.15 per cent thereafter.

Fund dealing is free, so too is dividend reinvestment but trading shares, investment trusts and ETF costs £7.50 per transaction.

The cost to enter drawdown is £132 but there is no charge to take regular income or make UFPLS withdrawals.

Savers aren’t able to get quotes or purchase an annuity through the platform.

Who is this good for? 

The platform could be a good option for a frequent trader. The annual admin charges might be on the high side but this is offset by free fund dealing and share trading at a reasonable cost. [More details on Willis Owen

Close Brothers A.M Self Directed Service

Close Brothers’s platform offers access to funds, shares, ETFs, investment trusts as well as bonds. Among the more notable features includes ‘The Close 50’ list of the best investment opportunities over the long term which is compiled by the platform’s investment team.

An annual admin fee of 0.25 per cent applies but there is no charge for fund dealing, regular investing or dividend reinvestment, while share trading is capped at £8.95.  

At retirement, starting drawdown, making regular income payments and UFPLS withdrawal costs £60 each.

There is no charge for an annuity quotation but purchases are levied at between 2 and 3 per cent – depending on the type.

Who is it good for?  

The platform is competitively priced for those with modest pots during the accumulation phase, and offers research and tips which could be especially useful to novice investors. [More details on Close Brothers A.M Self Directed Service]

James Hay Modular iPlan 

Should you invest in a Sipp?

Using a Sipp gives you complete control of your retirement nest egg and provides access to a comprehensive range of investments including stocks, bonds, funds and even commercial property as well as gold bullion.

The flexibility offered by Sipps is a major lure, but it does mean that the responsibility of picking investments to generate retirement cash will rest solely on your shoulders.

When considering this as an option you need to ask yourself whether you are prepared to do the homework, and regularly monitor your investments.

If you’re not comfortable with this then a stakeholder pension, which offers a simple plan with limited investment options, could be a more suitable option. 

You can invest in funds, investment trusts, fixed term deposits and commercial property through the platform but not shares.

James Hay charges £179 on top of a yearly platform fee of 0.25 per cent on sums up to £300,000, 0.20 per cent on the next £300,000 invested, 0.15 per cent on the next £400,000, 0.05 per cent on the next £500,000 and nothing over £1.5million.

Sipp charges are waived for assets over £200,000.  

There is no fund dealing, regular investing or dividend reinvestment charge. 

The cost to start drawdown is £100. Regular income payments and UFPLS withdrawals each cost £154 (the former is an annual charge).

The platform does not administer annuity quotations or purchases. 

Who is it good for? 

The way this platform levies fees to invest regularly, trade funds and reinvest dividends could suit those who actively chop and change investments. The annual admin fee is reasonable – particularly for those with pots below £300,000. 

[More details on James Hay Modular iPlan]

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