Gilts, also known as gilt-edged securities, are essentially IOUs issued by the UK government. They offer a reliable source of income and are known for their stability, making them a popular investment choice for many Britons. If you're interested in adding Gilts to your portfolio, here's a guide on where and how to purchase them in the UK.
Where to Buy Gilts
There are two primary ways to buy Gilts:
1. Secondary Market through Stockbrokers
The most common way to buy Gilts is on the secondary market. This market allows investors to trade existing Gilts amongst themselves. You'll need to go through a reputable stockbroker or investment platform that offers access to the Gilts market.
- Benefits: Wide variety available, flexibility in choosing maturities and amounts.
- Considerations: Requires opening an account with a broker/platform, commissions or fees may apply, some platforms may have minimum investment requirements.
2. Primary Market through Gilt Auctions
The UK Debt Management Office (DMO) occasionally holds auctions where individuals can bid on newly issued Gilts. This offers the opportunity to purchase Gilts at their face value.
- Benefits: Acquire Gilts directly from the issuer, potentially get them at face value.
- Considerations: Auctions are not frequent, minimum investment amounts can be high, competitive bidding process may not guarantee successful purchase.
Choosing a Stockbroker/Platform for Buying Gilts
With a wide range of stockbrokers and investment platforms available, selecting the right one depends on your individual needs. Here's a comparison of some popular options to consider:
| Broker/Platform | Gilt Access | Trading Fees | Account Minimum | Additional Features |
|---|---|---|---|---|
| Hargreaves Lansdown | Extensive range of Gilts | £11.95 per trade (discounts for frequent traders) | No minimum | Investment research tools, self-service investing |
| Interactive Investor | Wide selection of Gilts | Low trading fees (structure varies), account charge for low activity | No minimum | Research tools, news & analysis, robo-advisor option |
| AJ Bell | Large selection of Gilts | Flat fee per trade | £50 minimum | Investment research tools, commission-free ISA accounts |
| Charles Schwab UK | Limited Gilt selection | Competitive commission structure | £1,000 minimum | International investing, focus on US equities |