Bestinvest launches free US share dealing

Investors can now trade US equities free of any share dealing fees on Bestinvest after the online investment and coaching service widened its investment choices to include many constituents of the S&P 500 Index. The move gives its customers direct access to the shares of some of the world’s biggest companies – from Apple and Microsoft to Amazon, Alphabet and Berkshire Hathaway. 

Investors trading US equities on Bestinvest will have no trading fees applied to their transactions - as opposed to the market competitive £4.95 fee per deal on UK share trades. No foreign exchange fees will be levied on reinvestment or distribution of US equity dividends. Bestinvest also offers a competitive foreign exchange fee (FX) of 0.95% on US trades of all value and a maximum service fee on invested assets of 0.2% pa. 

The addition of US shares to Bestinvest is yet another milestone in the brand’s ongoing development programme, coming just a year after it first unveiled plans to transform the platform into a hybrid service combining the best of online investment with lower fees, free financial coaching from qualified financial planners, affordable one-off advice packages, low-cost Ready-made Portfolios and sophisticated digital goal-planning and portfolio simulation tools. 

Bestinvest has continued to upgrade its offering in 2023, rolling out its new mobile app in January - available on the Apple App Store for iOS and the Google Play Store for Android - to help customers manage their investments on the go and adding four new Ready-made Portfolios to its existing collection of 15. Its Ready-made Portfolios are fully managed solutions designed to meet different risk and goal profiles, with options that invest solely through low-cost passives, best-of-breed active managers, as well as direct equities and bonds.  

Jason Hollands, Managing Director of Bestinvest, said: “We have been relentlessly focused on enhancing customer experience. Adding US shares to the Bestinvest platform is another key enhancement for the service following the relaunch in May last year. 

“While Bestinvest users have long been able to have exposure to US equities through our extensive range of funds, investment companies and ETFs, the addition of almost 500 individual US stocks adds an extra layer of choice to our existing selection of more than 3,000 funds, shares, investment trusts, Exchange Traded Funds (ETFs) and, for those investors able to tolerate higher risk, the ability to invest in Venture Capital Trust (VCT) new issues.   

“The S&P 500 makes up about 80% of the total US equity market capitalisation and is one of the most widely watched market indexes across the globe, meaning Bestinvest customers can now dabble in some of America’s largest companies directly from their account.” 

Investors looking to invest in US shares can either add them to an existing account – such as a General Investment Account, Individual Savings Account (ISA) or Self-Invested Personal Pension (SIPP) - or open or transfer in a new account and then search for US shares on the platform. 

As with all other platforms, UK Bestinvest customers considering adding US equities to their portfolio must also complete a W-8BEN form to confirm they are not resident in the US and secure a US tax reduction on the dividends and interest they earn.  

DIY investors looking to trade US stocks on Bestinvest can also benefit from the award-winning platform’s extensive range of features, which includes: 

• Lower fees: Bestinvest has the lowest share dealing fees of all the major investment platforms* at £4.95 a trade for UK shares and no share dealing fee on US equities, as well as free fund trading and competitive account service fees that start at just 0.2% pa for Ready-made Portfolios and US stocks. *Pricing correct as at December 2022  
• A wide range of investments: DIY investors can choose their own investments from more than 3,500 funds, investment trusts, Exchange Traded Funds (ETFs), UK and US shares, as well as participate in Venture Capital Trust (VCT) new issues. 
• Free investment coaching: Our coaching sessions with a qualified financial planner, held virtually, can help customers set clear financial goals and invest towards them with sessions easily bookable through the website or app. Sessions are available to anyone – you don’t need to have a Bestinvest account to book one. 
• Affordable investment advice packages: Our bite-sized advice packages help self-directed investors that want extra help with their investments access advice at affordable rates and no ongoing fees. Our packages include an ‘Investing for Your Goals’ session for £295 with a financial planner to set goals and establish how much risk to take or a ‘Portfolio Health Check’ for £495 with an investment professional that analyses a portfolio and offers tailored advice on what actions to take.
• Low-cost Ready-made Portfolios: Managed by investment experts at Bestinvest’s parent company Evelyn Partners, our five low-cost Smart portfolios invest through passive funds and ETFs, catering to different risk profiles with ongoing costs starting at just 0.32%. Customers can also select one of our 10 Expert portfolios, which include Sustainable options and invest in best-in-class active managers, or one of our four new Multi-Asset funds comprising direct equities, direct bonds and collective investment funds. 
• A suite of new digital tools: Our goal-setting tools include portfolio projection and simulation tools that help customers design a life plan. This involves setting a goal, such as ‘Retirement’ or ‘Grow my Money’, measuring progress towards that goal and identifying actions to achieve it faster, such as setting up monthly investments, adding a lump sum or taking on more or less risk. Separately, our clients can view a breakdown of their holdings by asset allocation, geographic exposure and equity capitalisation, track the performance of their investments over time and complete an online risk assessment to identify their risk profile.  
• A new mobile app: Clients downloading the online investment and financial coaching platform’s new app – available on the Apple App Store for iOS and the Google Play Store for Android – can tap into almost all the features now synonymous with Bestinvest’s revamped website.
• Extensive research, guides and news: Bestinvest offers fund and share factsheets, guides and articles, as well as webinars to help DIY investors power their investment decisions.  We also have the bi-annual Spot the Dog report, which helps DIY investors identify the funds that have consistently and significantly underperformed, and the bi-annual Best™ Funds List, with the latest edition published earlier this month, which narrows down what we believe are the best investments to consider based on the selections of Evelyn Partner’s 300-strong investment management team.  

In January Bestinvest unveiled a cashback offer*,  rewarding new and existing customers with up to £1,000 in cashback when they transfer an account in full to Bestinvest – such as an old workplace pension or personal pension, investment account, ISA or Junior ISA – and then invest the money by March 15.    

Separately, Bestinvest also has a Refer a Friend offer, where existing clients can refer up to five people a month to the platform and receive a £100 reward for themselves and the friend recommended.   

To secure the reward, the friend must add £1,000 or more into an ISA, Investment Account or SIPP. Once the friend has been invested for at least 120 days, Bestinvest will pay both the client and the friend a £1000 cash reward. Terms and conditions apply. 

* The cashback offer, applicable to transfers to a Bestinvest account between January 10 and March 15 (subject to Terms & Conditions), rewards customers transferring an account in full from another provider with the following cashback amounts:  

• £100 for £1,000+ account transfer  
• £300 for £20,000+ account transfer  
• £600 for £50,000+ account transfer  
• £1,000 for £100,000+ account transfer  

This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication.    

Investment does involve risk. The value of investments and the income from them can go down as well as up. The investor may not receive back, in total, the original amount invested. Past performance is not a guide to future performance. Changes in the exchange rate may increase the risk to the value of an investment. 

Before you consider transferring a pension, it is important to ask yourself: Will I lose any valuable benefits or features from my existing pension plan? Will I incur any penalties on my existing pension if I transfer? Is it an occupational final salary pension scheme? (in which case it is very unlikely to be advisable to transfer) Have I considered the charges on my current plan? (a new arrangement may be more expensive – especially if you have a stakeholder pension). Exit fees may apply if you choose to leave Bestinvest.