A new player has entered the market to continue kitchen table trading after Interactive Investors decided to stop offering accounts to investment clubs, endangering the inexperienced trading groups
A chance to continue trading in the stock market has been extended to amateur investing groups throughout Britain after it appeared they would have to give up after their accounts were closed.
Interactive Investor, one of the last major brokers to support them, decided to close all club accounts as of October 27, 2025, casting doubt on the future of the UK's investment clubsunofficial gatherings of friends or coworkers who get together to learn how to invest, share knowledge, and make trades.
Although not all clubs utilized Interactive Investor, the company was a pioneer in the field because none of the big platformsHargreaves Lansdown, Bestinvest, AJ Bell, and Freetradeoffered new accounts to clubs.
Many groups now have few options as a result of its withdrawal, raising concerns that investment clubs may completely vanish.
A separate article examines the best investment funds for novices and what you should know about investment funds.
But now, stock broking and investment management company GHC Capital Markets has stated that it will house investment clubs. The company is taking over in an effort to uphold a long-standing custom that combines investing, community, and learning.
GHC Capital Markets managing director Rachel Hardy stated: "We realized we could help when we heard from clubs seeking support and saw the news about Interactive Investor closing its investment club accounts. We want to make sure that these groups have a place to learn, invest, and gain market confidence.
Describe investment clubs.
For many years, investment clubs have been a part of UK financial life. Members usually pool small monthly sums, sometimes as little as £20 or £50 each, and meet in person to make investment decisions. During these meetings, which are frequently held over food and drink, the members may discuss topics such as whether the Magnificent Seven are overpriced or how to invest £1,000.
Many people find that the social connections are just as important as the financial gains.
According to a letter from a BFIA reader and Interactive Investor client, his group has been an investment club for more than 20 years, with a membership that varies from eight to seventeen.
They wrote: "We have enjoyed and learned a huge amount from our monthly meetings and investment decisions, but our returns have been modest."
But some investment clubs have made a lot of money. According to an email from another Interactive Investor user and BFIA reader, his investment club has increased the value of its portfolio to over £550,000 over the course of 27 years.
Since I recently learned that Hargreaves Lansdown, another possible alternative, might be just as reluctant to take our business, they wrote, "This dismissal of our worth by Interactive Investor really rankles but I'm also worried that our transfer options may be limited."
Many larger brokers are unwilling to serve investment clubs because of the comparatively small trade sizes involved.
Are accounts available to investment clubs on any of the major platforms?
Investment club accounts were previously offered by Hargreaves Lansdown, but since 2020, the company has not been taking new members. However, current investment clubs are still able to operate. A representative stated, "We have observed a low level of customer interest in investment club accounts."
Although Freetrade stated that it has never provided access to investment clubs, the closure of investment club accounts by platforms such as Interactive Investor has sparked conversations about future service offerings.
Because of its stated low demand and emphasis on offering user-friendly investment accounts via its main platform and Dodl mobile app, AJ Bell has never offered investment club accounts.
Accounts from investment clubs have never been permitted by Bestinvest. The company claims that this is because of the low demand, which prevented it from developing the features that would have supported their specific needs, like multi-user access and trading approval for a club account.
GHC acknowledged that it might not make money on its choice. However, Hardy asserted that "we know that investment clubs are about much more than money".
They help people learn how markets function, boost their self-esteem, and unite communities and friends. Due to the significant void left by Interactive Investors' decision, we do not want clubs to merely vanish.
Our goal is to help small UK investors, ensure they have a place to go, and support a tradition that has led thousands of people to invest over the yearsnot to make money.
Along with stockbroking for investment clubs, GHC aims to provide clubs with optional educational sessions. These unofficial discussions will cover subjects like stocks and market fundamentals and will be held at club meetings upon request.
"Our goal is to empower small UK investors and those who are just beginning to consider investing to take the next step, gain more knowledge about the markets, and possibly do more with their money," Hardy stated.
If I have an Interactive Investor investment club account, what can I do?
The decision to remove investment club accounts was made by Interactive Investor as part of a strategic review. Instead, it will concentrate on its main trading accounts, ISA, and self-invested personal pension (SIPP).
The closure of investment clubs is scheduled for October 27, 2025. Customers have two months to terminate their accounts, and there are a number of options available to them.
Move funds to individual Interactive Investor trading accounts; sell funds and withdraw them to the designated bank account; move funds to a different provider; or donate to ShareGift Interactive Investor just introduced ii Community. "It is not an investment club, but it has evolved into a platform for interaction and idea exchange for individual investors," a representative stated.
Like-minded people have the opportunity to evaluate one another's investment concepts, learn what motivates other investors, and see where their own money is going.
According to the spokesperson, "lively groups within the ii community discuss areas from beginner investing to drawing down pensions, and everything in between."
Investors interested in big trends like gold and other commodities, the effect of tariffs on investments, and purchasing opportunities both domestically and abroad have also expressed interest in market volatility, Junior ISAs, and retirement investment selection.
How to start a club for investors.
Establishing an investment club usually requires the following.
A licensed FCA broker to carry out, retain investments, and assist with the onboarding process. A formal club agreement that addresses decision-making, contributions, and return distribution. a special bank account to ensure openness and group financial control. The treasurer or secretary of the investment club should notify HMRC that the club has been formed.
As a member of an investment club, you will receive a written statement of your gains and losses (an investment club certificate) at the end of each tax year from the person who runs the club, such as its treasurer. You can use HMRC's investment club certificate to divide any income, gains, and losses among its members in accordance with the club's rules. You can also use the certificate to keep records of members' income and gains. Make arrangements to purchase shares from members who wish to leave the club.
After obtaining your certificate, which is a written record of your gains and losses for the year, you must determine whether you are required to file for and pay capital gains tax. The capital gains tax allowance, which is currently £3,000 annually, exempts you from paying taxes if your total taxable gains fall below that amount. If you lose, you are subject to special regulations.
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