Lloyds Bank was founded in 1765 making it a solid option if you're looking for a well-established major bank to invest with. In this independent review, we'll look at Lloyds Share Dealing, an investment service from Lloyds Bank that allows you to open various types of investment account, investing in a range of assets. We'll take a look at its pros, cons, and some alternatives to consider such as AJ Bell Dodl* and Interactive Investor*.
What is Lloyds Share Dealing?
Lloyds Share Dealing is a good option if you're looking to open a share dealing account or ISA. You can buy and sell UK and international shares, as well as other assets such as mutual funds and ETFs. There are also lots of tools to help with your research when deciding what to invest in. Regular, scheduled investments are free which makes Lloyds a good choice for longer-term investors who don't necessarily make lots of trades each month. Those aged between 18 to 25 can also benefit from a free Invest Wise account which normally comes with annual account fees.
Lloyds Share Dealing service: Key features
- No commission fees for scheduled monthly investments
- No commission fees for international share trades (just pay the 1% FX fee)
- £40 annual admin charge is waived if you're under 26 and have an Invest Wise account
- More than 2,500 different funds to choose from
- More than 600 ETFs to choose from
- Select list of funds to help you choose the best investments from a carefully curated shortlist
- ETF Quicklist reviewed by BlackRock with 16 ETF options to choose from
- Open a Share Dealing ISA or general investment account and pick your own investments
- Ready-made funds are available via Lloyds too for investors who prefer passive investments
What products and services does Lloyds Share Dealing offer?
Lloyds Share Dealing offers a range of products and services to its investors. Here, we outline some of the key benefits on offer.
Share Dealing ISA
A Lloyds Share Dealing stocks and shares ISA allows you to invest up to £20,000 each year tax-free which means that gains are free from capital gains and UK income tax. With a Lloyds Share Dealing ISA, you can create your own portfolio and choose a range of different assets, including over 600 ETFs and more than 2,500 different funds.
Share Dealing Account
A Lloyds Share Dealing account works well for people who have used up their £20,000 allowance for that tax year but want to keep investing. Investors can choose a range of different assets and make use of features like the ETF Quicklist.
Invest Wise Account
An Invest Wise account is designed for younger investors aged between 18 to 25. Customers with an Invest Wise account benefit from waived admin fees (£40 a year) but get to keep all of the other benefits that come with a share dealing account or ISA.
Expert advice via Schroders Personal Wealth
Investors with at least £100,000 in shared assets (or sole income) could benefit from a free initial consultation with Schroders Personal Wealth. The service offers a full financial review and help with financial planning for you and your family.
What can you invest in with Lloyds Share Dealing service?
Lloyds Share Dealing allows you to pick your own investments, including a range of assets such as:
- UK and international shares
- ETFs
- Funds
- Investment trusts
Below, we outline some of the assets on offer via the platform.
ETF Quicklist
There are more than 600 ETFs you can invest in with Lloyds Share Dealing service, but the ETF Quicklist offers a good starting point. The list is compiled for Lloyds Bank by iShares for BlackRock and is is reviewed quarterly. As of now, the 16 ETFs include:
| ETF Name | ETF Description |
| iShares Global Clean Energy UCITS ETF | An ETF for those interested in clean energy with a 0.65% ongoing fund charge and an 8.41% 5-year annualised return |
| iShares S&P 500 Financials Sector UCITS ETF USD Acc | An ETF for those interested in the US financial market with a 0.15% ongoing fund charge and an 11.55% annualised return |
| iShares S&P 500 Information Technology Sector UCITS ETF | An ETF for those interested in the US tech market with a 0.15% ongoing fund charge and a 25.01% annualised return |
| iShares III PLC MSCI TRGT UK REAL EST UCITS ETF GBP DIST | An ETF for those interested in the UK property market with an ongoing fund charge of 0.40% and a -0.5% 5 year annualised return |
| iShares Physical Gold ETC | An ETF for those interested in investing in commodities, and specifically gold, with a 0.12% ongoing fund charge and a 13.77% 5-year annualised return |
| iShares UK Dividend UCITS ETF | An ETF for those looking for dividends with a 0.40% ongoing fund charge and a 5.86% 5-year annualised return |
| iShares Core MSCI World UCITS ETF | An ETF for those looking to invest in developed markets around the world with a 0.20% ongoing fund charge and a 12.75% 5-year annualised return |
| iShares Core MSCI EM IMI UCITS ETF | An ETF for those looking to invest in emerging markets around the world with a 0.18% ongoing fund charge and a 4.88% 5-year annualised return |
| iShares MSCI China A UCITS ETF | An ETF for those looking to invest in the Chinese market with a 0.40% ongoing fund charge and a 5-year annualised return |
| iShares Core MSCI Japan IMI UCITS ETF | An ETF for those looking to invest in the Japanese market with a 0.12% ongoing fund charge and a 5-year annualised return |
| iShares plc - iShares Core FTSE 100 UCITS ETF | An ETF for those looking to invest in the UK market with an ongoing fund charge of 0.07% and a 7.06% 5-year annualised return |
| iShares Core S&P 500 UCITS ETF | An ETF for those looking to invest in the UK market with an ongoing fund charge of 0.10% and a 12.41% 5-year annualised return |
| iShares Core Corp Bond UCITS ETF GBP (Dist) | n ETF for those interested in bonds and fixed-income investments with an ongoing 0.20% charge and a -0.45% 5-year annualised return |
| iShares Core MSCI World UCITS ETF | An ETF for those looking to invest in a global fund with an ongoing fund charge of 0.20% and a 12.75% 5-year annualised return |
| iShares MSCI Global Semiconductors UCITS ETF | An ETF for those looking to invest in the automation and artificial intelligence sector with an ongoing fund charge of 0.35% which launched in 2022 |
| iShares Core UK Gilts UCITS ETF GBP (Dist) | An ETF for those looking to invest in bonds and gilts with an ongoing fund charge of 0.07% and a -3.84% 5-year annualised return |
These are the current ETFs on the ETF Quicklist, but these could change every quarter.
Select list of funds
There are more than 2,500 funds to choose from if you have a Lloyds share dealing account. To help you narrow down your choices, there is a select list of funds put together by experts at FE fundinfo based on criteria provided by Lloyds bank. This list of approximately 63 funds is frequently updated to ensure it still meets the bank's criteria. You can find the full list on Lloyd's website, but here are a few examples of the funds on the list right now:
- Artemis SmartGARP Global Emerging Markets Equity I Acc GBP - This emerging markets fund has an 8.62% 5-year annualised return with a 0.92% ongoing fund charge. This is considered a high-risk fund with the potential for higher rewards and higher losses (rated 6 out of 7).
- BlackRock Emerging Markets D Acc - This emerging markets fund has a 3.17% five-year annualised return with a 0.97% ongoing fund charge and it is considered a high risk fund which is rated 6 out of 7.
- L&G US Index Trust I Acc GBP - This is a US market fund with a 15.11% five-year annualised return with a 0.10% ongoing fund charge. This is considered a high risk fund which is rated 6 out of 7.
- Vanguard UK Inflation-Linked Gilt Index Gross Acc GBP - This is a UK market fund with a -5.86% five-year annualised return and a 0.12% ongoing fund charge. It's considered a high-risk fund which is rated 5 out of 7.
- CT UK Social Bond IGA GBP - This is a UK market fund with a 0.55% five-year annualised return and a 0.31% ongoing fund charge. It's considered a lower risk fund with lower potential rewards rated 2 out of 7.
Most of the funds on the list are currently higher-risk funds with a few medium-risk funds and even fewer lower-risk funds.
UK and international shares
Lloyds Share Dealing allows you to buy, sell, and hold a range of UK and international shares. It costs £11 per trade to buy and sell UK shares, but this cost goes down to £8 if you make more than 8 trades in a single quarter. You don't pay commission fees to trade international shares, however, a 1% FX fee applies instead.
Lloyds Ready-made Funds
Lloyds Ready-made Funds are a great choice if you don't want to pick your own investments and prefer to leave the work to the experts. There are three funds to choose from depending on your risk tolerance and they include:
- The Cautious fund - This is Lloyds' lowest risk fund with more than 60% of investments currently in fixed interest assets. It has an ongoing charge of 0.24%.
- The Balanced fund - This is Lloyds' medium-risk fund aimed at steady growth with more than 50% currently in equities. It has an ongoing fund charge of 0.25%
- The Progressive fund - This is Lloyd's highest-risk fund aimed at those looking for high returns and who are willing to accept higher risks of potential losses. Close to 80% is currently invested in equities and it has an ongoing charge of 0.23%
The account fee is £3 per month which is not inclusive of ongoing charges and transaction fees. Ongoing fees range from 0.23% to 0.25%, while transaction costs can range from 0.08% to 0.14%.
The table below sums up the Ready-made Funds' performance since inception.
| Performance Period | Cautious | Balanced | Progressive |
|
31/12/2022 – 31/12/2023
|
8.6%
|
9.9%
|
11.0%
|
|
31/12/2021 – 31/12/2022
|
-12.3%
|
-8.9%
|
-7.0%
|
|
31/12/2020 – 31/12/2021
|
3.5%
|
8.2%
|
12.5%
|
|
31/12/2019 – 31/12/2020
|
4.0%
|
2.3%
|
1.9%
|
Lloyds Share Dealing fees
The table below sums up some of the key fees you can expect to pay if you opt for a Lloyds Share Dealing account.
| Description | Fee |
| Share Dealing account charge | £20 every six months; waived if you have an ISA |
| Share Dealing ISA charge | £20 every six months |
| Fund trading charge | £1.50 to buy or sell funds online |
| Ad-hoc admin charges (i.e. cash withdrawal by cheque or ad-hoc statements) | £12.50 for each service |
| Online trades (first 7 deals each quarter) | £11 per deal |
| Online trades (8+ deals per quarter) | £8 per deal |
| Phone trades | £25 per deal |
| FX charges on international trades | 1% |
| Regular investments | Free |
| Typical fund ongoing charge (for those investing in funds) | 0.23% to 1.5% of the total investment |
| Account fee for ready-made funds | £3 per month |
Lloyds Share Dealing customer reviews
On Trustpilot, Lloyds Bank has a rating of 1.7 out of 5.0 based on more than 4,600 reviews. Approximately 79% of customers gave Lloyds a one-star rating, while 13% gave it a 5-star rating. This may seem low but is not unusual for high street banks which tend to score low on Trustpilot.
Does Lloyds Share Dealing pay interest on cash held in its accounts?
Lloyds does not pay interest on cash held in any of its share dealing accounts. This is indicated on the application form when you apply for an account. If you're interested in an account that offers interest on uninvested cash, you may want to take a look at some of the alternatives we discuss below.
How to open an account with Lloyds Share Dealing
To get started with Lloyds Share Dealing, you'll need to choose one of the two accounts on offer - the Share Dealing ISA or the Share Dealing account which works similarly to a general investment account. If you're aged between 18-25, you can open an Invest Wise ISA or Invest Wise account instead and have your account fee waived.
Regardless of the account you choose, the steps to open it are fairly similar. You'll need to provide:
- Your National Insurance number
- Your home address (you can add up to two addresses for the last three years)
- Your debit card and bank account details
You'll also need to be:
- At least 18 years old
- A UK resident
- Not a US citizen or taxpayer
If you're eligible, you'll need to complete an online form filling out basic details about yourself, your job, and your tax residence status. You'll also need to provide your card details and bank details before you submit your application.
Lloyds Share Dealing alternatives
If you're not sure Lloyds is quite right for you, you might want to take a look at alternatives including Interactive Investor, AJ Bell Dodl, and Barclays Smart Investor. They all have their pros and cons but could be the right choice for you depending on your investment goals.
Interactive Investor
For those who like a flat fee structure and lots of choice, Interactive Investor* could be the way to go. Investors with portfolios under £50,000 pay £4.99 per month which works out to £60 per year. This is slightly more expensive than Lloyds which charges an admin fee of £40 per year. However, Interactive Investor has the widest choice of investments on the market with well over 40,000 investment options. Also, UK share trades are cheaper than with Lloyds costing just £3.99 rather than Lloyds' fee of £11 per deal. Additionally, Interactive Investor pays interest on uninvested cash up to 4.75%. As such, depending on your needs, Interactive Investor could work out much better for you. The higher price tag could be worth it regardless given the wide choice of investments and additional features.
You can read about Interactive Investor in more detail in our independent review.
AJ Bell Dodl
AJ Bell Dodl* is a good choice if you're looking for a no-frills low-cost app-only investment platform designed by AJ Bell. If you're not a fan of the flat structure on offer by Lloyds and Interactive Investor, you might prefer AJ Bell Dodl's 0.15% annual fee instead. There are also no commission fees charged when buying or selling assets. However, you get a lot less choice with just 37 funds in total (in contrast, Lloyds offers more than 2,500 and it's not even the most comprehensive choice on the market). That being said, if low costs are what you're after and you can find funds you like on AJ Bell Dodl, then it's worth checking out. You can read more about AJ Bell Dodl in our independent review.
Santander Investment Hub
If you're looking to invest with a high street bank then Santander Investment Hub might be the way to go. You can choose from a range of different accounts, including a stocks and shares ISA and personal pension. Santander may also work better for smaller portfolios as you pay a percentage fee of between 0.10% and 0.35% depending on how much you invest, rather than a flat fee. Unlike with Lloyds, you can also earn interest on uninvested cash. You can read more about Santander Investment Hub in our independent review.
Pros and cons of investing via Lloyds Share Dealing
Below, we outline the pros and cons of investing with Lloyds Share Dealing service.
Pros
- No commission fees for regular investments
- No commission fees for international share trades (but an FX fee applies)
- No annual fees with Invest Wise account for people aged 18 to 25
- Curated shortlists of ETFs and funds to help you pick the right investments for you
Cons
- One-off trade fees are on the expensive side for UK commissions
- Some competitors offer more investment choices
- Poor Trustpilot reviews (1.7 out of 5.0) could point to poor customer satisfaction
- No interest paid on uninvested cash
Should you invest with Lloyds?
Lloyds Share Dealing service is a solid option for investors looking to invest through a well-established high street bank. Other high-street banks, like Santander, offer similar options via services like Santander Investment Hub. Lloyds is particularly suited to regular investors who can benefit from commission-free scheduled trades. Those aged between the age of 18 and 25 can have the annual admin fee waived via an Invest Wise account which is another perk. That being said, there are cheaper alternatives out there for those with smaller portfolios and plenty of other investment platforms that pay interest on uninvested cash. AJ Bell Dodl*, for example, offers a percentage fee of 0.15% and commission-free trading. Those looking for more choice, lower trading fees and interest on uninvested cash may find Interactive Investor* works better for them.
If a link has an * beside it this means that it is an affiliated link. If you go via the link Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. But as you can clearly see this has in no way influenced this independent and balanced review of the product. The following links can be used if you do not wish to help Money to the Masses - Interactive Investor, AJ Bell Dodl
