Amateur investing groups across Britain have been offered a chance to keep playing the stock market after it looked like they’d have to give up following a decision to close their accounts.
The future of the UK’s investment clubs – informal groups of friends or colleagues who come together to learn how to invest, share knowledge and make trades – had been thrown into doubt by a decision by Interactive Investor, one of the last major brokers supporting them, to close all club accounts from 27 October 2025.
While not every club used Interactive Investor, the firm was a leader in the space – with none of the major platforms including Hargreaves Lansdown, Bestinvest, AJ Bell and Freetrade offering new accounts to clubs.
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Rachel Hardy, managing director at GHC Capital Markets, said: “When we saw the news about Interactive Investor closing its investment club accounts and heard from clubs looking for support, we realised we could step in to help. We want to ensure these groups continue to have a place to invest, learn, and build confidence in the markets.”
What are investment clubs?
Investment clubs have been a feature of UK financial life for decades. Members typically pool modest monthly sums, sometimes as little as £20 or £50 each, and meet in person to decide on investments, often over food and drink, where the topic may be how to invest £1,000 or ‘are the Magnificent Seven overvalued?’
For many, the experience is as much about the social connection as the financial returns.
One MoneyWeek reader and Interactive Investor customer wrote to say his group has operated as an investment club for well over 20 years with a fluctuating membership of between eight and 17.
“Our returns have been modest but we have enjoyed and learnt a huge amount from our monthly meetings and investment decisions,” they wrote.
However some investment clubs have seen significant gains. Another Moneyweek reader and Interactive Investor user emailed in to say his investment club had built a portfolio value over 27 years to in excess of £550,000.
“This dismissal of our worth [by Interactive Investor] really rankles but I'm also worried that our transfer options may be limited as I've just been informed that another of the potential alternatives, Hargreaves Lansdown, may be similarly disinclined to accept our business,” they wrote.
The relatively small trade sizes involved in investment clubs means many larger brokers are unwilling to serve them.
Do any of the major platforms offer accounts to investment clubs?
Hargreaves Lansdown used to offer investment club accounts, but since 2020 hasn’t been accepting new applications, though existing investment clubs can continue to be run. “We’ve seen limited client demand for investment club accounts,” a spokesperson said.
Freetrade said it hasn’t offered access to investment clubs before but the fact platforms like Interactive Investor have been closing investment club accounts has opened up discussions about potentially offering the service in future.
AJ Bell has never offered investment club accounts due to what it said was low demand and its focus being on providing easy-to-use investment accounts through its main platform and Dodl mobile app.
Bestinvest has never allowed investment clubs to have accounts. This is because the demand was low so it didn't build out the features to support their particular requirements, such as multi-user access/trading approval for a club account, according to the company.
GHC accepted its decision may not be a profitable one. But Hardy said “we know that investment clubs are about much more than money”.
“They give people confidence, help them learn how markets work, and bring friends and communities together. Interactive Investor’s decision has left a big gap, and we don’t want to see clubs simply disappear as a result.
“For us, this isn’t about profit, it’s about supporting small UK investors, making sure they have a place to go, and helping keep alive a tradition that has introduced thousands of people to investing over the years.”
As well as being investment clubs’ stockbroker, GHC hopes to offer optional educational sessions for clubs. These informal talks, held at club meetings if requested, will cover topics such as equities and market fundamentals.
Hardy said: “We want to give small UK investors, and those just starting to explore investing, the confidence to take the next step, learn more about the markets, and potentially do more with their money.”
What can I do if I have an investment club account with Interactive Investor?
As part of a strategic review, Interactive Investor has decided to withdraw investment club accounts. It will instead focus on its core self-invested personal pension (SIPP), ISA, and trading accounts.
The deadline for investment clubs to be closed is on 27 October 2025. They’ve been given two months to close their accounts and customers have several options:
- Transfer assets to individual Interactive Investor trading accounts
- Sell assets and withdraw to their nominated bank account
- Transfer to another provider
- Donate to ShareGift
Interactive Investor has recently launched ii Community. “Though not an investment club, it’s become a forum for engagement and the sharing of ideas for retail investors,” a spokesperson said.
Like-minded individuals get to critique each other’s investment ideas and discover what makes fellow investors tick and find out where they’re putting their own money.
“Lively groups within the ii community discuss areas from beginner investing to drawing down pensions, and everything in between," the spokesperson added.
Market volatility, Junior ISAs, and choosing investments for retirement have been popular topics of discussion there – with investors also interested in big trends like gold and other commodities, as well as the impact of tariffs on investments, and buying opportunities both here and overseas.
How to set up an investment club
To set up an investment club, groups typically need:
- a regulated FCA broker to execute, hold investments, and guide through the onboarding process
- a formal club agreement covering decision-making, contributions and distribution of returns.
- a dedicated bank account for transparency and collective control of funds.
- to notify HMRC the club has been formed (this should be done by the treasurer or secretary)
The investment club treasurer or secretary should:
- divide any income, gains and losses between its members according to the club’s rules
- give every member a written statement at the end of each tax year – you can use HMRC’s investment club certificate
- keep records including members’ income and gains
- arrange to buy shares from members who want to leave the club
As a member of an investment club you’ll get 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, for example its treasurer.
Once you have your written statement of gains and losses for the year (your ‘certificate’), you’ll need to work out if you need to report and pay capital gains tax. You do not have to pay tax if your total taxable gains are under the capital gains tax allowance, currently £3,000 a year. There are special rules if you make any losses.
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