Best Brokers for Long-term Investing for UK Investors (2026)

This article was updated as of June 2026.

The buy-and-hold strategy is one of the most prominent investment styles in the financial market. As the name suggests, this strategy involves buying and holding assets for a long time, even possibly indefinitely.

Long-term investors commonly employ this strategy. Read on to discover what it is and how to find the right broker for your needs.

What is the buy & hold investment strategy?

The buy-and-hold investment strategy involves buying and holding assets for a long time — typically 10 years or longer, even indefinitely. The consensus is that a buy-and-hold strategy should last at least 5 years.

Those who employ the buy-and-hold investment strategy are looking for assets that are expected to perform well in the future and are quite stable (for instance, mature blue-chip stocks or broad index ETFs). Some investors may also seek to buy assets during market downturns when their prices are low.

Once you buy the assets, the portfolio is passively managed — in other words, you won't place frequent buy and sell orders; you simply keep your portfolio intact regardless of the market cycle.

For UK investors, buy-and-hold is particularly powerful when combined with the right tax wrapper. Holding investments inside a Stocks and Shares ISA (£20,000 annual allowance for 2026/27, frozen until 2030) means all gains and dividend income grow completely free of UK tax. With CGT now capped at £3,000 annually and dividend tax reaching 35.75% for higher-rate taxpayers outside an ISA, the wrapper makes a material difference over a 10- or 20-year holding period. For retirement-focused buy-and-hold investing, a SIPP provides additional upfront tax relief of 20–45% on contributions.

Key features of the Best Long Term Investment Brokers

Low Fees & Commissions

• No account maintenance fees or inactivity fees — these erode returns silently over a 10+ year holding period.
• Zero-commission trades for stocks and ETFs.
• Low or no fees for mutual funds and bonds.

Tax-Efficient Wrappers

• Access to a Stocks and Shares ISA — the most important account for UK long-term investors, with a £20,000 annual allowance for 2026/27.
• Access to a SIPP for pension investing — contributions receive 20–45% tax relief, with a £60,000 annual allowance.

Diverse Investment Options

• A wide range of stocks, ETFs, funds, and bonds.
• Fractional shares for easier portfolio diversification.
• Automatic dividend reinvestment (DRIP) options.

Security & Regulation

• FCA-regulated broker with FSCS protection up to £85,000 per provider.
• Reputable broker with a long track record.

Best brokers for long-term investing in the UK

InvestEngine

InvestEngine is consistently ranked as the best platform for buy-and-hold investing in the UK in 2026 by independent reviewers including StockBrokers.com. It specialises exclusively in ETFs and is built entirely around the passive, long-term investor.

The DIY portfolio is completely free — no platform fee, no dealing commission. Managed portfolios cost just 0.25% per year. Both options are available inside a Stocks and Shares ISA and a SIPP, making InvestEngine one of the cheapest routes to tax-efficient long-term investing in the UK.

A standout feature is the ability to create multiple named investment pots for separate goals. The trade-off: InvestEngine only supports ETFs (800+), trades execute once per day rather than instantly, and uninvested cash earns no interest.

Vanguard UK

Vanguard is the gold standard for low-cost, long-term passive investing. Its UK platform charges just 0.15% per year, capped at £375, with free fund dealing. Vanguard offers a Stocks and Shares ISA and a SIPP. The limitation: you can only hold Vanguard's own funds — no individual stocks, no third-party ETFs. For investors who want a simple, low-cost, set-and-forget approach, this is a feature rather than a bug.

Hargreaves Lansdown

Hargreaves Lansdown is the UK's most popular investment platform, managing over £172 billion in client assets. It offers the broadest investment range of any UK platform — over 2,500 funds, UK and international shares, ETFs, investment trusts, and bonds — all within ISA and SIPP wrappers.

Following a fee overhaul in March 2026, HL's platform charge fell from 0.45% to 0.35% (capped at £150/year for shares), online share dealing dropped to £6.95, and the Ready-Made Pension Plan fell to 0.45% total — free for up to a year for new SIPP clients (offer to 31 July 2026).

DEGIRO

DEGIRO offers low per-trade commissions, free custody, and no inactivity fees. However, DEGIRO does not offer a Stocks and Shares ISA or SIPP, meaning all gains and dividends are taxable. For UK long-term investors, the absence of tax wrappers is a significant drawback — DEGIRO is better suited as a supplementary account once ISA and SIPP allowances are exhausted. Read our DEGIRO review for more.

Interactive Brokers

Interactive Brokers is the best choice for long-term investors who need access to global markets at the lowest commissions. It offers stocks, ETFs, bonds, and funds across 135+ exchanges, with fees from 0.05% of traded value. There are no inactivity fees (removed in 2021) and no custody fees. In 2026, IBKR expanded its ISA to include mutual funds. Read our Interactive Brokers review for more.

eToro UK

eToro offers zero-commission trading on stocks and ETFs, a user-friendly interface, and the popular Copy Trading feature. It offers a Stocks and Shares ISA but does not offer a SIPP. Key consideration for buy-and-hold investors: eToro charges a $10/month inactivity fee after 12 months of no login — a genuine drawback for passive investors. Read our eToro review for more.

Best brokers for buy & hold strategy for international investments

Interactive Brokers is the clear leader for international buy-and-hold investing, with 135+ global exchanges and an FX conversion fee of just 0.03% — the lowest available.

eToro charges a currency conversion fee of 0.50%. DEGIRO charges 0.25%, with commission of €1 + €1 for US stocks and from €3.90 + €1 for European stocks. Note that DEGIRO's lack of an ISA means international gains are subject to UK CGT above the £3,000 annual exempt amount.

Tax-efficient investing: ISA vs SIPP for buy-and-hold

For UK long-term investors, choosing the right tax wrapper is as important as choosing the right broker:

Fees

When comparing long-term investing brokers, fees matter enormously over a 10–20 year horizon. Here is a concise breakdown for 2026:

InvestEngine: Zero platform fee (DIY); 0.25%/year (Managed). Zero dealing commission. No inactivity fee. ISA and SIPP both free.

Vanguard UK: 0.15%/year (capped at £375). Free fund dealing; £7.50/trade for ETFs. No inactivity fee. ISA and SIPP available.

Hargreaves Lansdown: 0.35% on the first £250,000 (capped at £150/year for shares), reduced from 0.45% in March 2026. £6.95/share trade; £1.95/fund trade online; free via Direct Debit. No inactivity fee. ISA and SIPP available.

eToro: Zero commission on stocks and ETFs. $10/month inactivity fee after 12 months of no login — significant for passive investors. $5 withdrawal fee. ISA available; no SIPP.

DEGIRO: Low per-trade commissions; ~€2.50/year maintenance; no inactivity fee. No ISA or SIPP.

Interactive Brokers: From 0.05% of traded value (min £3/order). No inactivity fee (removed 2021). No custody fee. ISA available (mutual funds added 2026); no SIPP directly.

Are they safe?

All brokers listed are regulated by Tier-1 financial authorities.

InvestEngine, Vanguard UK, Hargreaves Lansdown, eToro, and Interactive Brokers are all FCA-regulated in the UK and covered by the Financial Services Compensation Scheme (FSCS), protecting up to £85,000 per provider in the event of firm failure.

DEGIRO is regulated by the Dutch Authority for the Financial Markets (AFM). UK investors should note that DEGIRO is not UK FSCS-protected — protection is under the Dutch Investor Compensation Scheme (up to €20,000), which offers less coverage than the UK scheme.

FAQ

Is buying and holding a good strategy for beginners?

Yes — buy and hold is one of the most beginner-friendly strategies available. It doesn't require constant monitoring or trading expertise. For UK beginners, starting with InvestEngine or Vanguard inside a Stocks and Shares ISA is an excellent first step.

How effective is buy & hold in the UK market?

Historically, the buy-and-hold strategy has been effective in the UK. Global index funds held inside an ISA have significantly outperformed cash savings over 10+ year periods. Past performance is not a guarantee of future results.

How long should I hold my investments?

The consensus minimum is 5 years, with most buy-and-hold investors targeting 10–20+ years. The longer the holding period, the more time the ISA wrapper has to compound gains tax-free.

Which is the best platform for buy-and-hold investing in the UK in 2026?

InvestEngine for ETF-focused zero-fee investing with ISA and SIPP. Vanguard UK for simplicity and low-cost index funds. Hargreaves Lansdown for broadest choice and best customer service. Interactive Brokers for global markets and experienced investors.

Should I use an ISA or a SIPP for buy-and-hold investing?

ISA first (£20,000 allowance, flexible access, all gains tax-free), then SIPP for additional retirement saving (£60,000 allowance, 20–45% upfront tax relief, but locked until age 55/57). Both together give maximum tax efficiency for long-term buy-and-hold.

Does eToro charge inactivity fees?

Yes — eToro charges a $10/month inactivity fee after 12 months of no login. Platforms like InvestEngine, Vanguard, and Hargreaves Lansdown do not charge inactivity fees — making them better suited for truly passive, hands-off investors.