Does eToro offer an ISA? Alternatives for 2026

As a UK resident, you have access to some of the most attractive long-term investment incentives available anywhere in the world. The ability to invest without paying tax on dividends, interest, or capital gains can be the difference between retiring in 20 years versus 25 – and with the Capital Gains Tax allowance now cut to just £3,000, sheltering your investments inside an ISA matters more than ever.

The good news: eToro does offer a Stocks and Shares ISA, provided through a partnership with Moneyfarm, an FCA-regulated digital wealth manager with over £6 billion in assets under management. Since first launching the partnership, eToro has expanded its ISA range to three products, all powered by Moneyfarm and accessible through the eToro app:

• Cash ISA – earn tax-free interest on your savings, with no platform fee for holding cash. Best for short-term goals or parking cash.
• Stocks & Shares ISA (DIY) – build your own portfolio from 1,000+ UK and US stocks, ETFs, bonds, and mutual funds. Best for hands-on investors who want control.
• Managed ISA – Moneyfarm’s experts build and manage a globally diversified, risk-matched portfolio for you. Best for hands-off investors.

All three are flexible ISAs (you can withdraw and replace funds within the same tax year without losing allowance) and are FSCS protected up to £85,000. Your ISA holdings also count toward your eToro Club tier. One important caveat: the eToro ISA does not support crypto or copy trading – crypto cannot be held in any ISA under current HMRC rules.

Still, there are other platforms that also offer a Stocks and Shares ISA and will explore them in this article. Let’s jump right into it!

What is an ISA, and what are its main benefits?

The acronym ISA stands for Individual Savings Account. It’s a tax-efficient wrapper that lets UK residents invest without paying tax on dividends, interest, or capital gains, with an annual allowance of £20,000 per tax year (the maximum you can pay in across all your ISAs combined).

This means you pay no tax on any dividends, interest, or capital gains realised within the account, no matter how large your ISA grows over time. As the old saying goes, nothing is certain except death and taxes – with an ISA, you can’t cheat death, but you can shelter a lot from the taxman.

There are four main types of ISA:

1. Cash ISA: pays tax-free interest, similar to a savings account. Best for capital protection or money you may need in the near future.
2. Stocks and Shares ISA: for investing in the capital markets (stocks, ETFs, funds, bonds) with long-term goals in mind. This is the type most relevant if you’re investing through eToro.
3. Lifetime ISA (LISA): designed for first-home buyers (or retirement from age 60). The government adds a 25% bonus on contributions, but you can only pay in up to £4,000 per year (which counts toward your overall £20,000 allowance), and there are penalties for unauthorised withdrawals.
4. Innovative Finance ISA (IFISA): for alternative investments like peer-to-peer (P2P) lending, which matches investors with borrowers. As of 6 April 2026, certain cryptoasset ETNs also became eligible for the IFISA.

You can split your £20,000 allowance across different ISA types in the same tax year – for example, some in a Cash ISA and some in a Stocks and Shares ISA. Note that crypto held directly cannot be placed in any ISA under current HMRC rules.

What products can I invest in a Stocks and Shares ISA?

The “qualifying investments” you can hold inside a Stocks and Shares ISA include:

1. Shares listed on a recognised stock exchange;
2. Securities (including bonds) issued by companies;
3. Recognised UCITS funds;
4. UK authorised investment funds (OEICs and unit trusts);
5. Investment trusts and REITs (Real Estate Investment Trusts);
6. Exchange-traded funds (ETFs) that are UCITS-compliant or otherwise meet HMRC’s qualifying criteria;
7. Depositary Receipts, American Depositary Receipts (ADRs), and American Depositary Shares (ADSs);
8. UK government bonds (gilts) and qualifying corporate bonds;
9. Fractional shares – explicitly confirmed as qualifying since November 2024.

In plain English, this means you can hold a broad range of investments inside a Stocks and Shares ISA – including UK and overseas shares, ETFs, investment funds, investment trusts, REITs, government and corporate bonds, and fractional shares of higher-priced stocks.

What is no longer permitted: from 6 April 2026, cryptoasset Exchange Traded Notes (cETNs) are reclassified as qualifying investments for Innovative Finance ISAs only, and can no longer be newly purchased inside a Stocks and Shares ISA. Crypto held directly remains ineligible for any ISA.

eToro ISA alternatives in the UK

All options presented below have Stocks and Shares ISA (some of the other ISA types are also available). Our selection criteria involved fees, platform interface, years in the market and customer support. Here are our top picks:

All the platforms above are authorised and regulated by The Financial Conduct Authority (FCA), and their clients’ accounts are fully protected by the Financial Services Compensation Scheme (FSCS). If something happens to the firm you are using and you cannot receive your investments, FSCS should step in to pay compensation up to £85,000 per investor per account.

Founded in 1995, Interactive Investor (ii) is one of the UK’s longest-established investment platforms. With over 500,000 customers and approximately £90 billion in assets under administration, it’s the UK’s largest flat-fee platform – you pay a fixed monthly subscription rather than a percentage of your portfolio, which becomes increasingly cost-effective as your wealth grows.

On 1 February 2026, ii overhauled its pricing, replacing the previous Investor Essentials, Investor, and Super Investor plans with three new tiers. Crucially, every plan now includes a Stocks & Shares ISA, SIPP, and General Investment Account on a single subscription:

• Core – £5.99/month (portfolios up to £100,000): UK and US trades at £3.99, fund trades £3.99. Best for most investors.
• Plus – £14.99/month (no investment limit): one free monthly trade, fund trades £1.49, fee-free accounts for up to 5 family members, unlimited free Junior ISAs.
• Premium – £39.99/month: two free monthly trades, free fund trades, UK and US shares at £2.99, flat 0.25% FX fee.

Regardless of plan, all customers can use ii’s regular investing service from as little as £25 per month with no dealing fees – just set up a direct debit and your contributions are invested automatically, free of trading charges.

ii offers one of the widest investment ranges of any UK platform (40,000+ options including UK and international shares, funds, investment trusts, ETFs, and bonds). Other ISA features include a Junior ISA, a Bed & ISA service (sell investments in a taxable account and rebuy them inside your ISA), and ethical investing options via ii’s ACE 40 list. ii is FCA-regulated, with FSCS protection up to £85,000.

Founded in 1981, Hargreaves Lansdown (HL) is the UK’s largest investment platform for individual investors, serving over 2 million clients with approximately £172 billion in assets under administration. It’s listed in the FTSE 100 (ticker: HL.) and is widely regarded as one of the strongest brands in UK retail investing, known for its research, service, and educational content.

On 1 March 2026, HL restructured its fees. The current Stocks and Shares ISA charges are:

• Funds: 0.35% on the first £250,000 (down from 0.45%), tapering to 0.25% (£250k-£1m), 0.10% (£1m-£2m), and 0% above £2m.
• Shares, ETFs, investment trusts, bonds, gilts, VCTs: 0.35% on the first £250,000, capped at £150 per year (up from the previous £45 cap).

Dealing charges are £6.95 per trade for UK and US shares, ETFs, and investment trusts (down from £11.95), with a new £1.95 fund dealing fee (funds were previously free to trade). The regular investing service remains free for selected shares, investment trusts, and ETFs bought via monthly Direct Debit from £25/month.

The changes are mixed in impact: fund investors benefit from the lower platform fee but now pay £1.95 per fund trade, while share and ETF investors can pay more because the annual cap tripled from £45 to £150. Active traders benefit from the reduced £6.95 dealing charge.

You can open a Stocks and Shares ISA with HL in two ways:

1. Do-it-yourself: manage your own account with access to over 10,000 investments (UK and overseas shares, ETFs, investment trusts, funds, bonds, gilts). Minimum £100 lump sum or £25/month via Direct Debit.
2. Ready-made investments: choose from HL’s curated portfolios designed by their investment team, sorted by risk level. Minimum £100.

HL is FCA-regulated, with client assets protected by the FSCS up to £85,000. It also offers a Lifetime ISA, Junior ISA, Cash ISA, and SIPP. The platform remains more expensive than discount competitors, so its premium pricing is justified mainly by breadth of investments, research quality, and brand strength rather than headline cost.

Founded by Jack Bogle in 1975, Vanguard is one of the world’s most respected asset management firms, with over $10 trillion in global assets. It pioneered the low-cost index fund and is uniquely investor-owned – it has no outside shareholders, so its interests are structurally aligned with its clients. Vanguard’s UK platform launched in 2017, offering its own funds and ETFs through a Stocks and Shares ISA, SIPP, and General Investment Account.

Important fee change: Vanguard introduced a £4 minimum monthly account fee (£48/year) for self-managed accounts with balances under £32,000. Above that, the standard 0.15% annual account fee applies, capped at £375. In practice:

• Under £32,000: £4/month flat fee.
• £32,000-£250,000: 0.15% annual fee.
• Over £250,000: 0.15% capped at £375/year.
• The £4 minimum does not apply to Junior ISAs or Managed ISAs.

There are no dealing fees for Vanguard funds; a £7.50 fee applies only to the optional “Quote and Deal” real-time ETF service (standard ETF orders at the daily aggregated price are free). You can invest through the LifeStrategy and Target Retirement ranges or build your own portfolio from Vanguard’s funds and ETFs, with ongoing fund charges (OCFs) averaging around 0.17%-0.20%.

You can get started with just £100 lump sum or £25 per month. The main limitation: Vanguard is a closed platform – you can only invest in Vanguard’s own funds and ETFs, with no individual stocks, investment trusts, or third-party funds. It’s ideal for long-term passive investors but unsuitable for stock pickers. Vanguard is FCA-regulated with FSCS protection up to £85,000. For portfolios of £32,000 or more it’s one of the lowest-cost ISA providers available; for smaller balances, the £4 monthly minimum makes alternatives like InvestEngine or Trading 212 worth considering.

Which broker should I choose for my ISA?

This is a question we can’t answer for a general audience – the best ISA provider for you depends on your personal priorities. Are low fees your main concern? Do you value the platform’s interface and ease of use? Or is customer support your number one priority? The right choice looks different for a hands-off investor who wants a managed portfolio versus an active investor building their own.

As a quick recap of the options covered above:

• eToro (powered by Moneyfarm) – good for existing eToro users who want Cash, DIY, or Managed ISA options in one app.
• Interactive Brokers – best for global market access, the lowest FX fees (0.03%), and low per-trade costs.
• XTB – strong for 0% commission investing, fractional shares from £10, and high cash interest, with £120,000 FSCS protection.
• Interactive Investor – ideal for larger portfolios thanks to its flat-fee structure (ISA + SIPP + GIA on one subscription).
• Hargreaves Lansdown – the premium all-rounder, with the widest investment range and strong research and service.
• Vanguard – the cheapest option for £32,000+ portfolios focused on low-cost index funds.

The wide range of choice makes the UK ISA market genuinely competitive – which works in your favour as an investor. Explore the providers above and decide which best fits your needs. If you need further guidance or have questions, feel free to reach out to us. We wish you the best on your investment journey!

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