With your 20,000 ISA allowance resetting come April, it’s a good time to find the best stocks and shares ISA account out there. Whether you’re on the lookout for a tax-efficient share dealing account to complement a cash ISA or you’re surfing the web for the cheapest investment platform, here are 5 things to look out for.

1. Fees and charges

It can be really difficult to compare ISA providers as they all offer different things and charge in different ways – percentage fees against fixed ones, for example.

More broadly though, you should keep a few numbers in mind:

The ISA account fee – this might be a flat fee or percentage of your ISA pot

Trading fees – often a flat fee, this is how much you’ll pay each time you place a trade

Foreign exchange (FX) fees – how much (normally a percentage) the platform will charge you to buy assets listed in foreign markets in foreign currencies

Fund fees – these usually apply to ETFs, OEICs, unit trusts and investment trusts. The company running the fund will normally charge a percentage fee and take it monthly

Also, think about what assets you’re likely to invest in – if you want to buy shares, it’s not much use to you if low fund dealing charges are an ISA platform’s selling point.
How often you plan to invest is important to consider too. Racking up trading fees on multiple transactions each month can end up making the cheapest ISA provider look a lot more expensive

2. Minimum investment amount

The ISA allowance for the 2021/22 tax year is 20,000, and it’s the same for the 2022/23 tax year. That doesn’t mean you have to invest that amount, it’s just the upper limit to what you can put in your stocks and shares ISA.

But, while that’s the maximum, there might be a minimum you have to invest with certain platforms so it’s worth checking if that level is right for you. It might not be advertised in flashing lights so make sure to read all the product details!

3. Transfers in

If you’ve built up a few ISAs over the years with different investment platforms or banks, it might make sense to bring them all together.

It can be much easier to manage them all in one place and makes working out things like ISA fees less of a struggle.

It could also be that you’ve spotted a cheaper ISA option for your needs or you want to buy assets that your current ISA provider doesn’t offer.

Whatever your reason, it’s important to make sure an ISA transfer is right for you before you make the move and check whether the new provider actually accepts transfers in.

4. Stock availability

If you’re looking to invest in stocks, investment trusts and ETFs, make sure they’re available when you’re comparing ISA accounts. You might find the ones you want to hold just aren’t there or the company might not be set up well to offer new companies and funds.

Another thing to watch out for is if the investment platform lets you buy fractional shares. Some stocks, particularly on the US stock market, can cost $1,000+ which can price out a lot of investors from the get-go.

Allowing investors to buy fractional shares means you can grab a smaller chunk of the company without having to shell out for a whole share.

5. Tools and education

It’s important to have the tools you need when you invest, such as a portfolio analytics tool to help you track your investments and figure out which ones have been the most successful, but more doesn’t always mean better. That’s why it’s worth looking at the resources on offer through a very personal lens.

Do you value charts, graphs and tools? Are the calculators up to scratch and, importantly, are they all easy to use?

Also, have to look to see if your investment platform has an ISA guide or a suite of accessible, simple-to-follow educational content that will keep you up to date with the stock market and give guidance on how to choose the right assets for your portfolio.