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Flat Fee vs Percentage Fee: Why Your ISA Platform Costs More Than You Think

By StockEmber TeamPublished 3 June 2025Updated 9 July 2026

Direct Answer

ISA platforms with percentage fees become expensive as your portfolio grows. Flat-fee platforms like AJ Bell Dodl (£12/year) are almost always cheaper above £25,000. Always calculate platform fee plus fund TER together; never compare platform fees alone.

The ISA fee question looks simple: how much does the platform charge per year? But the answer changes entirely depending on how much money you have in the account, and most comparison tables never show you the crossover point.

How percentage fees scale — and when they hurt

A platform charging 0.25% per year feels cheap at £10,000 — that is £25. At £100,000, it is £250. At £500,000, it is £1,250 per year, every year, permanently. If your money compounds at 7% annually, you are handing away 3.6% of annual gains to the platform before you receive a penny.

The flat-fee case

AJ Bell Dodl charges £1 per month for a Stocks & Shares ISA — £12 per year regardless of balance. At £10,000, that is 0.12%. At £50,000, it is 0.024%. At £200,000, it is 0.006%. The crossover from percentage to flat-fee favourability generally occurs around £20,000–£30,000 on most platforms.

What comparison tables miss

Fund fees are separate from platform fees. A platform charging 0.25% can still give you access to ETFs at 0.07%. A 'free' platform offering only high-cost funds (0.75% OCF) may be more expensive in total. Always calculate platform fee plus fund TER as a combined figure. Never compare platform fees alone.

FAQ

Which ISA platform is cheapest for a £50,000 portfolio?

AJ Bell Dodl's £12/year flat fee is very competitive above £20,000. Vanguard Investor (0.15% capped at £375) is cheaper below £80,000 for Vanguard-only investors. Always add the fund TER to your platform comparison.

Does SIPP fee structure work the same way?

Yes — the same flat vs. percentage logic applies. SIPPs often have additional admin charges for drawdown and pension commencement lump sum processing, so compare total cost including those events, not just annual custody.

Disclaimer

Disclaimer: This is education, not financial advice — we don't know your circumstances, taxes, or timeline. Drafted with AI, checked by Stockember's editors. Investing puts your capital at risk and past performance never guarantees the future, so weigh any move against your own plan, and a licensed advisor, before you act.

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StockEmber Team

Independent research desk