Why you may want to look beyond your bank when investing: the strongest alternative options for your money

Products featured in this article were independently chosen by This is Money's specialist journalists. If you open an account using links marked with an asterisk, This is Money will receive an affiliate commission. That does not affect our editorial independence.

Using your current account provider for investing can feel like the simplest route, especially if you already know the brand and have an existing relationship with it.

According to a survey by financial research website Boring Money, one in two savers would rather invest through their bank than through a specialist provider.

But is it actually the best way to manage savings and investments, or would a dedicated investment platform be a better fit?

It is important to do your research before opening a stocks and shares Isa if you want to avoid paying more than necessary in fees.

What do banks actually offer?

High street banks have often been criticised for high charges and a limited choice of investments compared with specialist platforms, although many have improved in recent years.

HSBC charges £5 per trade on its Global Investment Centre, plus a £10.50 quarterly account fee for shares and exchange-traded funds (ETFs). Lloyds Bank charges £9.50 per trade for shares and ETFs. Both are relatively expensive when compared with rivals.

Some banks do not offer share dealing at all. NatWest, for instance, offers only five ready-made portfolios. That means investors cannot buy individual shares, making it more suitable for beginners looking for a simple, one-size-fits-all option.

Best high-street options

Two banks stand out for their investing services.

Barclays Direct Investing

Barclays became much more competitive when it removed its 0.25 per cent account fee. Investors pay no fee to buy or sell funds, but there is a £6 dealing fee for shares, ETFs, bonds and investment trusts. That fee can be reduced to zero by setting up regular investments, with a charge only applying when you sell.

The fee structure, together with access to more than 8,000 investments, compares well even with newer platforms such as Freetrade* and Trading 212*, which also do not charge account or dealing fees.

By contrast, more established groups AJ Bell* and Hargreaves Lansdown* charge platform fees of 0.25 per cent and 0.35 per cent of your investments each year.

Barclays also offers five ready-made portfolios, with no account charge or dealing fee and an ongoing annual charge of 0.45 per cent.

It does not offer a self-invested personal pension (Sipp).

This option is best suited to investors who plan to focus mainly on funds or use a ready-made portfolio. It may also appeal to those who want to set up free regular investing in shares and ETFs.

Scottish Widows Share Dealing

At Scottish Widows, which is part of Lloyds Bank, there are no annual fees for a stocks and shares Isa or a general investment account. A Sipp is available, with a 0.25 per cent annual charge capped at £16.50 a month.

The £5 dealing fee for shares is slightly lower than Barclays' charge, but Scottish Widows also applies it to funds. That makes it more expensive than many specialist platforms, with Hargreaves Lansdown charging £1.95 for one-off fund trades and Fidelity offering them free.

Scottish Widows does allow free regular investing, so it is still possible to avoid the dealing charge and invest at low cost.

Other charges are worth checking too. Dividend reinvestment costs 2 per cent of the value, capped at £5. Scottish Widows also offers ready-made portfolios, with a standard account fee of £3 a month.

This can be a sensible choice if you want to buy shares and ETFs occasionally, since it is slightly cheaper than Barclays for that type of dealing.

Should you use a specialist investing platform instead?

Holly Mackay of Boring Money says: 'Banks now offer stocks and shares Isas via their apps so the admin hassle is hugely reduced.'

Opening an investment account is generally straightforward whichever provider you choose.

That means the best option often comes down to the best overall package of fees, customer service, tools and features.

For example, providers such as Hargreaves Lansdown* and Interactive Investor* offer analyst research and tools that let you examine performance in more detail.

Newer platforms such as Trading 212* combine fee-free investing with user-friendly mobile apps.

Some platforms also offer fractional shares, which allow investors to buy smaller portions of expensive US stocks. Older providers often require investors to buy whole shares.

Investing online is simple, inexpensive and can be done from a computer, tablet or phone whenever and wherever it suits you.

Choosing between a DIY investing platform, a stocks and shares Isa, a self-invested personal pension or a general investment account can feel daunting.

> This is Money's full guide to the best investing platforms

Every provider differs slightly, with different charges for buying or holding investments and different access to shares, funds and investment trusts.

When deciding which one suits you best, it is important to compare service levels, administration charges, dealing fees and any other extra costs.

The table below highlights the main players, but readers should still carry out their own research and consider the points in our full guide to the best investment accounts.

Platforms featured below were independently selected by This is Money’s specialist journalists. If you open an account using links marked with an asterisk, This is Money will receive an affiliate commission. That does not affect our editorial independence.