Lesson 1 of 4
How to choose an investment broker
The 5 things that actually matter: fees, fund availability, account types, platform quality, and customer service.
Lesson video
What a broker does
A broker is the platform where you open your investment account (Individual Savings Account (ISA), Self-Invested Personal Pension (SIPP), 401(k), Tax-Free Savings Account (TFSA), Registered Retirement Savings Plan (RRSP), taxable brokerage) and buy/sell investments. The broker holds your assets in custody, executes your trades, and provides tax reporting.
The broker is NOT your financial advisor (unless you pay for that separately). The broker does not tell you what to buy. The broker is infrastructure, like your bank.
What to compare when choosing a broker
| Factor | What to look for | Red flag |
|---|---|---|
| Platform fee | 0-0.25%/year or flat fee (£50-100/year for larger pots) | Percentage fees above 0.45% on pots over £50K |
| Trading commission | £0 for funds/ETFs (most modern platforms) | Per-trade fees above £10 for buy-and-hold investors |
| Fund availability | Your chosen index fund (VOO, VUSA, VWRL) must be available | Platform only offers own-brand or high-fee funds |
| Account types | Must support the account you need (ISA, SIPP, TFSA, RRSP) | No ISA/TFSA option forces you into a taxable account |
| Fractional shares | Useful if you cannot afford full shares of expensive Exchange-Traded Funds (ETFs) | Not essential but convenient |
| Customer service | Phone support during market hours, not just chatbot | No phone number, email-only, multi-day response times |
Recommended brokers (2026)
| Country | Best for simplicity | Best for low fees | Best for advanced investors |
|---|---|---|---|
| UK | Vanguard (0.15%, capped £375) | InvestEngine (0% platform fee) | Interactive Brokers (£0, global access) |
| US | Fidelity ($0, ZERO funds at 0.00%) | Vanguard ($0, VOO at 0.03%) | Schwab ($0, full platform) |
| CA | Wealthsimple ($0, auto-invest) | Questrade ($0 Exchange-Traded Fund (ETF) buys) | Interactive Brokers ($0, global access) |
For most people: pick the cheapest platform that has your chosen index fund and the account type you need. Fidelity (US), Vanguard (UK/US), or Wealthsimple (CA). Do not overthink it. The difference between brokers is much smaller than the difference between investing and not investing.
Knowledge check
You have a £200,000 pension pot. Broker A charges 0.15% platform fee. Broker B charges 0.45% platform fee. Both offer the same funds. What is the annual fee difference?
“Income has three jobs: mandatory expenses, the fun stuff, and the responsible things like save, invest, and pay off debt.”
Applied to: How to choose an investment broker
Common questions about how to choose an investment broker
Getting started with how to choose an investment broker
Understand your current position
Use the calculator on the homepage to see your take-home pay and tax position before making changes.
Take the first small step
You do not need to do everything at once. Pick the single action from this lesson that has the highest impact and do it this week.
Review after one month
Check the effect on your payslip or bank statement. Adjust if needed. Progress, not perfection.
Use the Wealthy Employee calculator to see how how to choose an investment broker affects your specific take-home pay and tax position.
Knowledge check
Based on what you learned about how to choose an investment broker, which statement is most accurate?