Inactivity Fee
What is an inactivity fee?
An inactivity fee is a charge some platforms apply if you don’t make any trades for a set period. Usually 12 months. It’s designed to discourage people from opening accounts and leaving them empty or dormant.
How much are inactivity fees?
Typically £5 to £15 per month, though some platforms charge quarterly. The fee usually only kicks in after a period of no trading. Often 12 or 24 months.
Do all platforms charge them?
No. Many UK platforms aimed at long-term investors don’t charge inactivity fees at all. They understand that “buy and hold” means not trading very often.
Inactivity fees are more common on platforms designed for active traders, where regular trading is the expectation.
How do you avoid inactivity fees?
- Choose a platform without them. Many don’t charge
- Make at least one trade per year. If your platform requires it
- Check before you open an account. Read the fee schedule
Key points about inactivity fees
- Charged if you don’t trade. Usually after 12+ months
- Not all platforms have them. Check before opening
- More common on trading platforms. Less common for long-term investors
- Easy to avoid. Pick the right platform or make occasional trades