Charges will start at 40 basis points and go down to 20bp depending on the holding and the sum.
Investments in Isas and Gias will start at 40bp and drop to 20bp after the first £250,000. Sipps on the other hand will be charged at 30bp and step down to 20bp after the first £250,000.
Investments of over £1m will not be charged. Bestinvest also said it will pay up to £500 towards the cost of any exit fees for investors seeking to transfer into its award-winning Sipp.
All fees will function on the same pricing model, regardless whether the holding is based on funds, investment trusts, ETFs or shares.
The average manager cost on premier selection funds in 0.66%. A flat rate dealing fee on shares of £7.50 will be maintained, while there will be no initial charges or switching charges on funds. No fees will be charged for reinvesting dividends.
Peter Hall, chief executive of Bestinvest, commented:
“The online investment service is much more than a ‘fund-supermarket’, it offers a wide range of investments and market-leading guidance and analysis tools. With banks withdrawing from the advice market, we believe this service is well placed to help bridge the gap for those investors who are prepared to make their own decisions but need a helping hand.”
On January 15, platform rival Hargreaves Lansdown caused a stir when it rolled out its new clean pricing structure model. Under the new pricing model, the platform keeps 0.45% while the remaining charge of 0.65% is the fee passed on to the fund manager.