Bestinvest offers one of the lowest trading fees among the mainstream platforms, with no trading fee for US shares. Its platform fee is higher than some of its peers but tends to be competitive for ready-made portfolios and US shares. Here’s a closer look.
Be mindful that investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.
Pros
- Low trading fee for UK shares
- No trading fee on funds or US shares
- Lower platform fee on US shares and ready-made portfolios
- Wide choice of investments
- Excellent fund research
- Free individual investment coaching
Cons
- High platform fee for self-invested portfolios
- Only UK and US shares offered
- High annual fund charges on some ready-made portfolios
- More limited company research
![Bestinvest](https://thumbor.forbes.com/thumbor/fit-in/x/https://www.forbes.com/uk/advisor/wp-content/uploads/2022/05/Bestinvest-Purple_on_White_-_SMALL-14June2022.png)
Table of Contents
- Bestinvest: a round up
- What plans are available?
- What products are available?
- What are the investment choices?
- What else does it offer?
- What about fees and charges?
- How does Bestinvest rank on customer service?
- Who should consider Bestinvest?
- What are some alternatives to Bestinvest?
- Is it safe to invest money with Bestinvest?
- What tools and research are available on Bestinvest?
Bestinvest: a round up
Bestinvest is owned by wealth management firm Evelyn Partners (previously Tilney Smith & Williamson) and has over 46,000 clients.
Bestinvest charges one of the higher percentage-based platform fees for self-invested accounts among the larger providers. However, it has one of the lower share trading fees and charges no trading fee and a lower platform fee on US shares.
Investors benefit from a wide choice of over 3,700 investments including shares, funds, exchange-traded funds (ETFs) and investment trusts. It is not possible to trade in fractional shares or foreign exchange.
Bestinvest also offers the choice of 19 ready-made portfolios, split by growth and income, level of risk, ESG (environmental, social and governance) criteria and cost.
Bestinvest provides a high level of customer support, with phone support available six days a week, in addition to live chat and email. It provides a range of investing guides, together with live webinars and the option of free one-on-one coaching sessions.
Note: all investing is speculative, your capital is at risk, and you could lose some or all of your money.
What plans are available?
Bestinvest offers one main plan for customers across its range of accounts, including a general investment account, Individual Savings Account (ISA) and Self-Invested Personal Pension (SIPP). Customers have the choice of self-invested or ready-made portfolios within these accounts.
What products are available?
- investment account
- ISA
- SIPP
- Junior ISA
- bare trusts
- discretionary trusts
- SSAS (small self-administered scheme) pensions
What are the investment choices?
Bestinvest offers the choice of over 3,700 investments, including:
- Over 1,480 shares from the UK and US, with around 1,000 UK shares and 400 US shares
- Over 1,580 funds
- Over 380 exchange-traded funds (ETFs)
- Over 280 investment trusts
What else does it offer?
- Ready-made portfolios: a choice of ready-made portfolios selected and managed by its in-house team. Investors can choose from defensive to maximum growth portfolios, income portfolios and sustainable portfolios. There are 10 portfolios in the ‘Expert’ range, 5 in the ‘Smart’ (low-cost) range and 4 in the ‘Direct’ range (which invests directly in individual companies and bonds). It is worth noting that the non ‘Smart’ portfolios have an ongoing charge figure (OCF) of around 1.5% per annum, which is at the upper end of average charges for active funds. The OCF drops to around 0.35% for the Smart portfolios
- The Best™ Funds List: a selection of around 130 funds, ETFs and investment trusts from third party fund managers across a range of sectors. Criteria for selection include outperformance against the benchmark, core investment principles, sustainability, fund size and longevity of the fund manager
- Spot The Dog: an annual publication of under-performing funds, along with ‘best of breed’ alternatives
- Coaching: Bestinvest offers free one-on-one coaching sessions with a qualified financial planner, covering investment goals, decision-making and strategy
- Education: Bestinvest offers a series of guides on ISAs, pensions and investments, together with live webinars on investing topics
- Apps: Bestinvest’s app is available on both Android and iOS devices
- Security: Bestinvest is regulated by the Financial Conduct Authority (FCA) in the UK. The company uses third party banks and custodians to hold customers’ funds, which provides protection for customers in the event that the company went into liquidation.
What about fees and charges?
Bestinvest charges the following fees for its three main accounts:
Other fees include a foreign exchange fee on non-sterling trades of 0.95%. The above trading fees are online only and a fee of £30 is charged for dealing over the phone.
How does Bestinvest rank on customer service?
Research firm Fairer Finance does not rate Bestinvest on customer experience, however, it receives a rating of 4.3 on customer review site Trustpilot.
Who should consider Bestinvest?
Bestinvest may appeal to investors wanting to trade and hold US shares, as it charges no trading fee and a lower platform fee for these investments.
It may also attract frequent traders, charging no trading fee on funds and one of the lower trading fees on UK shares amongst the mainstream providers.
Overall, Bestinvest offers a good range of investments, together with individual coaching, app-based trading and fund research.
What are some alternatives to Bestinvest?
There are a number of other trading platforms to choose from, including AJ Bell and interactive investor among the mainstream providers and eToro and Trading 212 among the zero-commission platforms. We’ve compiled our pick of the best trading platforms, ISA providers and SIPP providers.
Is it safe to invest money with Bestinvest?
Bestinvest is regulated by the Financial Conduct Authority (FCA), meaning that its systems and practices meet industry requirements.
Customers’ money and investments are held by a third party custodian and are ring-fenced in accordance with FCA rules. The custodian is covered by the Financial Services Compensation Scheme (FSCS) under which investors may be entitled to compensation of up to £85,000 if the custodian cannot meet its obligations.
However, there is no protection in terms of the underlying investments and the risk that they may fall in value or lose all capital.
What tools and research are available on Bestinvest?
Bestinvest has a wide range of research available to customers, including general market and investing commentary. Its publications include the Best Funds List and Spot The Dog, an annual report on underperforming funds.
In terms of tools, customers can trade online or via the app, including making one-off or regular contributions. Customers can also carry out basic tasks such as monitoring investments and using smart planning tools.
Frequently Asked Questions
Is Bestinvest a good investing app?
With low fees on UK share trades, no fees on US share trades, extensive fund research and a wide choice of investment options, BestInvest has a lot going for it. However, fees for self-invested portfolios are relatively high.
In terms of the app specifically, BestInvest has a user score of 4.5 stars on iOS and 3.2 stars on Android. However, these are from just 41 and 26 reviews on the respective app stores.
Is BestInvest covered by FSCS?
Yes, BestInvest is fully regulated by the Financial Conduct Authority (FCA) which means it is covered by the Financial Services Compensation Scheme (FSCS).
This protects customer deposits up to £85,000 (£170,000 for joint accounts) in the event the provider goes bust.
How do I withdraw money from BestInvest?
ISA and investment account holders should select their account, and then tap or click on ‘manage cash’, followed by ‘withdraw cash’. From there they can select an amount to withdraw and the account to which it should be credited.
SIPP account holders are advised to contact BestInvest’s Client Relations Team on: 020 7189 9999 to discuss any potential tax implications of cash withdrawals.
Does BestInvest have a minimum investment?
According to the BestInvest website, the minimum investment into most funds is £50.
The minimum investment into equities is the cost of one share, as well as any applicable trading costs.