The low-cost stocks and shares Isa market is heating up with the launch of products from JPJShare.com and Sippdeal.

Execution-only broker JPJShare.com has set up an Isa with no initial charge and no annual fee. It offers UK shares and funds, and costs £5.75 to deal. This is reduced to £4.75 for investors that trade more than 15 times a month.

The firm launched in December last year and is based in the Isle of Man. It is owned by Rivington Street Holdings, which also operates share tipping website t1ps.com.

Brian Gould, director at JPJShare.com, says the new Isa offers ‘a quality service at a fair price’.

He comments: ‘We’ve researched the Isa market in the UK and it quickly became clear that many providers are overcharging for simply setting up and transferring Isas between providers. What’s more, there are an array of hidden penalties and costs thrown in.’

Other low-cost Isas, such as TD Waterhouse and Barclays, also have no admin fee but typically charge more for share dealing.

Interactive Investor has no admin fees and charges, and charges £10 for trades.  However, investors can also use its portfolio builder service, which charges £1.50 to buy UK shares. The catch is that investors must choose one of four dates on which to trade each month.

While JPJShare.com’s Isa is undoubtedly cheap, it does not offer a comprehensive range of investments. For example, many brokers such as Hargreaves Lansdown and Interactive Investor offer bonds too.

Meanwhile self-invested personal pension provider AJ Bell is launching an investment Isa through its Sippdeal business. It is expected to be available in the next week.

Similar to its low-cost Sippdeal product, there is no set-up or annual charge, and fund dealing will cost £9.95 online and £29.95 by telephone.

Up to 0.5 per cent of trail commission will be rebated back to the investor on 1,200 of the funds offered. There will be a £12.50 charge per quarter for any trades on funds and structured products that are outside of the core 2,000-strong fund range.

A J Bell marketing director Billy Mackay says: 'Sippdeal has established itself as one of the leading low cost, online Sipps for DIY investors. With the addition of an Isa and a dealing account we've created a one-stop solution that provides investors with a compelling case for managing all of their investments in a single place whilst allowing them to make real cost savings.'

Investment options with the Sippdeal Isa include funds, government and corporate bonds, investment trusts, exchange traded funds and exchange traded commodities.