The group will charge a new fund administration fee of 0.35% on all Funds Market investments, with a minimum of £35 and a maximum of £1,750 per account per year. There are no charges for fund transactions.
The group will, where possible, convert all clients to clean funds from 1st March.
For clients holding investments other than funds, there will be annual ISA and SIPP account fees of £30 +VAT and £200 +VAT respectively. Share trading costs have been reduced to £11.95 from £12.95.
Managing director of independent platform research group the Platforum Holly Mackay says, “The good news for investors is that there has been a general reduction in charges across the market. The bad news is that there is still confusion pricing out there- especially for platforms supporting shares, funds and SIPPs – and it’s still very hard for investors to work out what any platform will actually cost to use.”
The Platforum points out that Barclays Stockbrokers, Fidelity and TD Direct Investing all have headline administration fees of 35bps. Barclays Stockbrokers’ new structure is capped, which benefits investors holding substantial amounts in funds. The group says the 0.35% is 'broadly mid-tier' for fund investments, but the £200+VAT flat fee for those holding shares in SIPPs makes Barclays' offering 'relatively expensive' for customers holding shares in smaller SIPP pots.
Mackay adds: “For providers supposedly at war, there’s actually not that much between the top platforms for customers. Barclays is competitively priced in general although smaller SIPP investors with shares will find this a pricey option. Fidelity’s ‘all-in’ fee makes it a nice, easy-to-understand option for fund investors but it is not a good option for those with shares. Hargreaves will suit accounts with both an ISA and a SIPP and some of their Wealth 150 funds.”
