Updated: April 08, 2024
SIPP Providers
Find out about the cheapest and best SIPP providers in the UK, and how to compare them
Written by Richard Angliss
Finance Expert
There are dozens of pension providers in the UK offering self-invested personal pensions (SIPPs). Though all SIPPs share certain features, each one can be slightly – or very – different from the next.
To help you choose a SIPP provider, we’ll explain what their role is, give you some information about the popular providers, and how they differ. If you need more information, you can seek advice from a SIPP specialist.
What is a SIPP provider?
A SIPP is a type of government-approved personal pension. It allows you to invest in a broader range of investments than other pension types and make your own investment decisions. A SIPP provider is a financial institution that offers this specific type of retirement savings plan.
Why would you need to find one?
SIPPs are designed to give people complete control over their investments. However, you can’t take an entirely do-it-yourself approach. Like all other pensions, SIPPs must abide by HMRC rules and can only be offered by financial institutions that are approved by the Financial Conduct Authority (FCA).
So, to start investing, you need to set up a SIPP with one of these providers. Investments that you hold outside of an authorised SIPP wrapper won’t benefit from various tax advantages SIPPs offer.
Speak to a expert today
Who are the main SIPP providers in the UK?
Here’s a comparison of 10 of the top SIPP providers in the country…
- AJ Bell. A popular, low-cost SIPP provider with a wide choice of investments.
- Aviva. A well-known pension provider with an easy-to-use online platform.
- Bestinvest. A low-cost option with free fund dealing and helpful support guides.
- Charles Stanley. A competitively priced SIPP from a reputable firm.
- Dentons. A bespoke full SIPP well-suited to complex investment strategies.
- Fidelity. An easy-to-use SIPP, awarded Best for Beginners 2022 by Boring Money.
- Hargreaves Lansdown. An established company known for excellent service.
- Interactive Investor. A good choice for investors with large portfolios, charging a flat fee.
- Nutmeg. A simple SIPP with options for people who prioritise sustainable investing.
- Vanguard. The provider with the lowest overall charges with a choice of 75 Vanguard funds.
Trying to decide which provider is best for your SIPP can be tricky, with lots of variables to consider (as outlined below). This is where seeking the help of a pensions advisor, with experience arranging this type of scheme, can be a shrewd move saving you a lot of time and stress.
Which is the cheapest?
Vanguard is typically considered the SIPP provider with the lowest charges (although direct comparison can be difficult, as SIPP charges can vary between customers based on how much you invest and how you use your account).
Vanguard charges based on a percentage of your portfolio, so customers with very large portfolios might find it cheaper to choose a provider with a flat fee.
Another thing to bear in mind is that the SIPP with the lowest costs is not necessarily the best value. Given the choice between the cheapest SIPP and a SIPP that delivered a much higher return for a slightly higher fee, most people would choose the latter. In short, it’s best to look at a range of factors rather than just cost and keep in mind that charges and product ranges can change over time.
How to compare the best SIPP providers
When you’re choosing a SIPP provider, you’ll want to look at:
Fees and charges:
The cost of running a SIPP can vary enormously depending on the features you require and how you decide to invest.
For example, some providers charge a fee for every transaction (i.e. buying or selling a share) which can quickly add up if you will be doing this regularly.
You should check the provider’s account fee, platform fee, management fee, transaction costs, set-up fee, exit fee, etc.
They will supply a list of these fees before you sign up, but it can be difficult to compare one provider’s fees with another’s as there are so many to look at. Plus, the level of service offered by two providers can vary substantially.
Range of investments:
Some SIPPs give you access to the entire investment universe while others only let you choose from a set range of funds.
You’ll need to consider how much freedom and flexibility you need.
Many SIPPs are designed primarily to hold shares and funds, so if you want to hold other assets such as gold, cash, or commercial property, you’ll be choosing from a smaller range of providers that allow this.
Ease of use:
One of the advantages of SIPPs is the freedom they can give you to invest as you please, making them well-suited to experienced investors.
If you’re new to investing, you may want to choose a provider that simplifies the experience and has a beginner-friendly interface. You might look for an advice service.
Reputation:
You may feel more confident with a well-known pension provider than a niche provider, though both can have advantages and disadvantages.
For example, more niche providers might offer bespoke services, while larger companies could have superior resources for clients.
Reviews
Here are some of our latest five star reviews
Are SIPP providers safe?
It’s very sensible to be wary of pension scams and fraud. If you choose a SIPP provider that is authorised by the FCA, you can be sure that it is not a scam.
Even authorised SIPP providers can, occasionally, fail. If this were to happen, the investments within your SIPP are still safe as they are not owned by the provider. The SIPP is simply a wrapper around them.
If the individual investments within your SIPP were to fail, the Financial Services Compensation Scheme (FSCS) offers investor protection. The level of protection will depend on the type of investment, and only regulated investments are protected.
Do any providers offer execution-only SIPPs?
Yes, SIPPs are often provided on an execution-only basis, which means that the provider has not assessed the suitability of the SIPP for your needs and will not provide any advice on the investments within it.
If you’re confident making your own investment decisions, an execution-only SIPP can be a way to keep your costs low. Less experienced investors may prefer to receive advice or opt for a discretionary investment management service (where a professional makes the decisions for you). Paying for these services can be cheaper than making a mistake.
Speak to a specialist in SIPPs
As everyone has different needs from their SIPP, there is no one “best SIPP” for all circumstances. Some people will look for cheap SIPP providers, some will look for the broadest range of investments, while others will require one specific feature, such as the option to invest in commercial property.
So, to find the best one for you, it’s worth seeking individual, independent advice. A specialist SIPP advisor will ask for all the relevant information and give you a straight answer. If you’d like us to put you in touch with one of the experts we work with for more information, just call 0808 189 0463 or enquire online.
Speak to a expert today
FAQs
Yes. You can either choose and manage your own investments or you can pay for professional advice.
Yes. You can transfer your SIPP from one provider to another at any time. Bear in mind that your existing provider might charge an exit fee and your new provider might charge a registration fee or transfer fee.
Ask A Quick Question
We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in pensions. Ask us a question and we'll get the best expert to help.
Related Articles
Written by Tony Stevens
Finance Expert
Tony has worked in a vastly diverse array of areas in the pensions industry for over 20 years. Tony regularly writes for trade press, usually on topical and pensions pieces as well as acting as a judge at prestigious national events.
Tony is also a highly qualified Independent Financial Adviser in his own right. His mantra has always been “Hope for the best, but plan for the worst”, and believes that the biggest impact that an adviser can have on a client’s life journey is to take them on a journey from generally having little or no real idea of what their retirement will look like, to giving them the understanding of what their retirement looks like now, then helping them navigate a path to what they want their retirement to be.
Continue Reading
Alternatives to taking out a SIPP
Can You Have More Than One SIPP?
SIPPS for the Self Employed, Contractors & Limited Companies
Borrowing Rules for SIPP Holders
Specialist SIPP Pension Advisors
SIPPs and Buy to Let Properties
Transferring A Pension Into A SIPP