Best SIPP Provider - Vanguard
Vanguard’s SIPP is simple, straightforward, and low-cost. It is a favourite among DIY investors who favour simple tracker funds and are looking to save on investment fees. There is a £4 a month fee applied if you have less than £32,000 across Vanguard accounts. If you have less than this, an investment platform that offers percentage-based fees may work out cheaper for smaller portfolios.
Investment choices: There is a very limited range of investments on the Vanguard platform, but this is no bad thing for newer investors or those who take a hands-off approach. You can’t invest in individual company stocks through Vanguard. Instead, you have access to around 85 Vanguard funds. These funds offer access to global companies and bonds.
Fees: There are typically no dealing fees. Annual management fees for accounts with more than £32,000 invested across Vanguard are just 0.15%, capped at £375 a year, on top of fund fees averaging 0.20% a year. Note, however, that investors with less than £32,000 invested across Vanguard are now charged a £4 monthly fee (£48 a year), which can work out to be expensive for smaller portfolios.
If your portfolio is worth more than £100,000 then a broker with flat fees may work out cheaper and you’d get more investment choices. Annual management fees would be £150 a year on top of ongoing fund charges. Overall, though, Vanguard offers a great starting point for a SIPP.
Platform: The website is easy to navigate and you can filter funds by region, risk level, or management type. There is not yet a mobile app available to all users but one is currently being tested. For an even deeper dive, check out my full review of Vanguard.
Best SIPP for flat fees - Interactive Investor
If you have a healthy pension pot of more than £55,000, and like access to a wide range of investments, then a flat-fee SIPP provider such as Interactive Investor (ii) is well worth considering.
Investment choices: There is a broad range of investments available through the ii SIPP, with more than 40,000 assets to choose from including U.K. and U.S. stocks, funds, investment trusts, ETFs, and bonds. You can also invest in ready-made portfolios if you’d prefer not to choose your own investments.
Fees: Interactive Investor’s SIPP costs £12.99 a month (£155.88 a year) for those with savings above £50,000. If you already have an ISA or trading account with ii, the SIPP fee reduces to £5 a month (£60 a year). For those with less than £50,000, ii’s SIPP fee is £5.99 a month.
If you already have an ISA or trading account with ii, the SIPP fee reduces to £5 a month (£60 a year) if there is less than £75,000 across your ii accounts.
In comparison, if you held £55,000 in mutual funds with a platform such as Fidelity or Hargreaves Lansdown, you’d pay annual management fees of £192.50 and £247.50 respectively. As you can see, a flat-fee platform can be a cheaper option for those with more invested.
For amounts above £75,000, the cost is £21.99 a month for multiple accounts.
Interactive Investor’s regular investing service also means there are no dealing charges if you invest regularly each month. Otherwise, one-off investments are £3.99 to buy or sell.
These dealing charges are on the lower end of other rival traditional platforms but are more expensive than a broker like CMC Invest, which offers free trading - although the monthly SIPP charge at CMC Invest is more expensive at £25 a month (free for the first year).
Platform: There is excellent educational material and the mobile app is also comprehensive. The website is easy to use and I found it relatively simple to figure out ii's services and charges navigating through it. To learn more about what it has to offer, read my full review of Interactive Investor.
Best for choice and simplicity – Freetrade
| Company |
Overall Rating |
Minimum Deposit |
SIPP |
ISA |
 Freetrade
|
 |
£1 |
Yes |
Yes |
Freetrade’s SIPP is a strong competitor to Interactive Investor (ii). Similar to ii, Freetrade applies flat fees to its pension account but offers the additional benefit of commission-free stock trading.
Investment choices: Through the Freetrade SIPP, you can invest in more than 6,200 U.S., U.K., and EU shares and ETFs. However, mutual funds and bonds are not offered.
Fees: The Freetrade SIPP costs £11.99 a month (£143.88), reduced to £9.99 monthly (£119.88 a year) if you pay for a full year upfront. This price also covers the cost of holding a Freetrade ISA as well. This means that Freetrade will work out cheaper than ii if you have more than £50,000 in your pension, although keep in mind that ii has a wider investment choice than Freetrade.
Platform: You can view your SIPP through the Freetrade app and website. The platform is easy to use and offers a good way to get stock inspiration, although I would prefer to be able to search and sort ETFs by theme or country.
To find out more about the platform’s features, check out my in-depth review of Freetrade.
FAQs
What are some tips for choosing a SIPP provider?
When choosing a SIPP provider for saving into a pension, first consider how much you have in your pension already. If you have a small amount, a provider that charges percentage fees might work out best. If you have a large amount — perhaps more than £70,000 — a platform that charges a flat monthly fee might work out cheaper.
Also consider carefully what markets or equities you want to invest in. Not all providers offer mutual funds, although ETFs offer the same potential for diversification by spreading your money across many companies, sectors or countries. If you don’t want to make any investment decisions, a platform that offers ready-made SIPP portfolios may be right for you, such as Hargreaves Lansdown, AJ Bell, Fidelity, Vanguard and others.
What are the SIPP contribution limits for 2025?
The maximum you can pay into a pension and benefit from tax relief is £60,000 or as much as your annual income — whichever is lowest. If, for example, you earn an income of £40,000 a year, then you can pay up to £40,000 into a pension (including tax relief).
The only exception to this limit is that you can also make use of unused pension allowance from the previous three tax years, in addition to the current tax year. If you earn £40,000 a year and haven't paid anything into a pension for the past four years, that’s potentially £160,000 you could pay in.
For very high earners, you start losing some pension annual allowance if your annual income is above £260,000. The SIPP annual contribution limit falls to £10,000 a year on an annual income above £360,000.
If you don’t work and are a non-U.K. taxpayer, you can pay up to £2,880 into a pension with tax relief taking the total to £3,600 a year.
Can I transfer my SIPP to another provider?
Yes, you can transfer a SIPP to another provider if you feel there is another that suits you better or if you are looking to save on fees. You also don’t need to go through a financial adviser. Simply find the provider you wish to switch to and start the transfer process from your new account.
crisis_alertWatch out for scams!
Always choose a SIPP provider that is regulated by the Financial Conduct Authority (FCA). It is illegal for a company to cold-call you about pensions. Don’t sign up for any SIPP provider that contacts you out of the blue and promises investment returns that are too good to be true. All the investment platforms we review on UK.StockBrokers.com are trusted providers.
Be mindful that some providers charge exit fees when you move your SIPP away from them. However, providers attempting to attract new clients, such as Bestinvest or Fidelity, offer to cover the cost of some or all of your exit fees when you switch to them. In any case, it is always good policy to check for any set-up costs and ongoing charges with your new provider.
One available option is to sell your investments and convert them to cash to transfer to the new SIPP provider to then reinvest. Alternatively, you may be able to transfer your investments directly to another provider without selling them first if the new one offers the same investments. Do be aware that transferring your investments directly is more complicated and the process is likely to take longer than simply transferring the holdings as cash.
You can transfer funds between SIPPs at any time if you are under the age of 55. That said, if you are aged over 55 and have already started withdrawing money from your SIPP, there may be some restrictions.
Is there a penalty for withdrawing from SIPP?
There is usually a penalty if you withdraw from your SIPP before the age of 55, unless you have a serious health condition that allows you early access to your funds. You will pay tax of 55% on the amount you want to withdraw, so you’ll lose more than half of what you take out - a severe penalty for early withdrawal.
Once you are above the age of 55, there should be no longer be any penalties for withdrawing from your SIPP. However, there still may be income tax to pay depending on how much you earn per year.
What are the best-performing SIPP funds in the UK?
The three best-performing investment funds in the U.K. in the first half of 2024 were Neuberger Berman 5G Connectivity Fund Acc, Janus Henderson Global Tech Leaders, and Alger Focus Equity Z Fund US, according to investment data firm Morningstar. These are not specific SIPP funds, but they can be held in SIPPs.
Top 5 performing funds of 2024:*
- Neuberger Berman 5G Connectivity Fund Acc +30.45%
- Janus Henderson Global Tech Leaders +29.96%
- Alger Focus Equity Z Fund US +29.96%
- L&G Global Technology Index Trust Acc +29.51%
- Alger American Asset Growth US +28.81%
* 1 January - 30 June, Source: Morningstar
crisis_alertImportant disclaimer:
Please remember that past performance may not be a good prediction of future results. A fund which previously performed well may falter and decline in the future for various reasons. Always use due diligence and your best judgement before investing into a fund or stock.
According to SIPP provider Interactive Investor, these were the most popular SIPP funds, by category, held by its customers in July 2024:
Mutual funds:
- Vanguard LifeStrategy 80% Equity A Acc
- Fundsmith Equity I Acc
- Vanguard LifeStrategy 60% Equity A Acc
ETFs:
- Vanguard S&P 500 UCITS ETF (VUSA)
- iShares Core MSCI World ETF USD Acc (SWDA)
- Vanguard FTSE All-World UCITS ETF (VWRL)
Investment trusts:
- Scottish Mortgage (SMT)
- Alliance Trust (ATST)
- F&C Investment Trust (FCIT)
Is my SIPP pension protected?
As long as your SIPP provider is fully regulated by the Financial Conduct Authority (FCA) then your money is protected by the Financial Compensation Scheme (FSCS) up to the value of £85,000. Search the FCA’s financial services register to see if a provider is registered there and what would happen to your money if the company fails.
While you won’t get compensation if your investment goes down and you lose money, the FSCS may cover poor investment management.
Who is the best SIPP provider for commercial property?
You cannot directly hold commercial property through self-directed investment platforms – commercial property is a specialist type of investment. That said, you can invest in commercial property investment funds (called real estate investment trusts or REITs) through many of the best online brokers in the U.K. To buy and hold commercial property directly you’ll need a regulated specialist provider such as Standard Life or Barnett Waddingham.
Other SIPPs we rate
- Lloyds Bank: Through the Lloyds Bank SIPP, you can pick your own investments or simply buy into a ready-made portfolio that has been created for you by experts. Money can be paid in ad-hoc starting from £1. Platform charges are 0.25% of investment value per year (capped at £16.50 a month or £198 a year). There are no trading charges if you do regular investing, buying a set amount each month. Otherwise, funds are £1.50 to buy and shares are £11 per trade.
- AJ Bell: A wide range of investments are available with AJ Bell’s SIPP. Annual service fees are a maximum of 0.25% for funds or up to £120 for shares and ETFs. Share dealing costs £5 and fund dealing is £1.50.
- Hargreaves Lansdown: A great all-rounder for those with large ETF or investment trust holdings. Fees for ETFs and shares are capped at £200 annually but fund charges are higher at 0.45%. Dealing fees are £11.95 per trade, so frequent traders may find it costly.
- Saxo: Best for experienced investors with £200,000 or more. Annual fees are 0.12% (£240 on £200,000) for stocks or bonds, and 0.2% (£400) for mutual funds. U.K. share trading fees are 0.05% (minimum £3). With 23,500 stocks and 6,000 funds, Saxo offers the broadest investment range and an advanced trading platform.
- Fidelity: Charges a flat-rate fee of £90 a year for amounts under £25,000, and 0.35% on amounts above this up to £250,000. Dealing fees are £7.50 per trade but drop to £1.50 for regular investing.
- Bestinvest: Offers free fund dealing. Account fees start from a low 0.2% for ready-made portfolios. However, there is a minimum annual management fee of £120 per year for SIPPs.
Why you should trust us
Elizabeth Anderson has been a financial journalist for more than a decade. She’s written for major national newspapers, contributed to corporate reports and research, and reviewed dozens of share dealing platforms, SIPP providers, ISAs, and brokerage firms. Elizabeth started her career at Bloomberg and has worked for the BBC, The Telegraph, The Times and the i newspaper. She is passionate about helping people understand finance and investing. A keen investor herself, Elizabeth invests through general dealing accounts, ISAs and several SIPPs.
Steven Hatzakis is a well-known finance writer with 25+ years of experience in the foreign exchange and financial markets. He is the Global Director of Online Broker Research for Reink Media Group, leading research efforts for ForexBrokers.com since 2016. He has served as a registered commodity futures representative for domestic and internationally-regulated brokerages. Steven holds a Series III license in the US as a Commodity Trading Advisor (CTA).
All content on UK.StockBrokers.com is handwritten by a writer, fact-checked by a member of our research team, and edited and published by an editor. Our ratings, rankings, and opinions are entirely our own, and the result of our extensive research and decades of collective experience covering the U.K. brokerage industry.
Ultimately, our rigorous data validation process yields an error rate of less than .1% each year, providing site visitors with quality data they can trust. Click here to learn more about how we test.
How we tested
At UK.StockBrokers.com, our online broker reviews are based on our collected quantitative data as well as the observations and qualified opinions of our expert researchers. Each year we publish tens of thousands of words of research and collect hundreds of data points while testing brokerage firms, share dealing platforms, SIPP providers, ISA providers, and other financial service providers relevant to U.K. investors.
Mobile testing is conducted on modern devices that run the most up-to-date operating systems available:
- For Apple, we use MacBook Pro laptops running the latest version of and the iPhone 15 running the latest version of iOS.
- For Android, we use the Samsung Galaxy S23 Ultra devices running Android OS 14.
All websites and web-based platforms are tested using the latest version of the Google Chrome browser.
Our researchers thoroughly test a wide range of key features, such as the availability and quality of trading platforms for web, desktop, and mobile, charting, real-time and streaming quotes, and educational resources – among other important variables. We also evaluate the overall design of the mobile experience, and look for a fluid user experience moving between mobile and desktop platforms.
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