The five risk-rated portfolios will invest in iShares ETFs using asset allocation insights from BlackRock, and IG has promised to remove set-up, dealing, rebalancing or exit fees.
The group claims most wealth management firms fall short on fee transparency and leave customers in the dark about the true cost of investing.
In an effort to combat so-called ‘hidden charges’, IG Group has championed its new fee structure which outlines the Total Cost of Ownership (TCO), in a bid to simplify fees for investors.
IG’s fee structure will add its management fee to the average cost of investing in an ETF to come up with the TCO, meant to be a simple way of investors to find out the final costs of investing.
Ian Peacock, the group’s head of UK and Ireland, said: “Hidden charges materially eat into investment returns and it is crucial that providers are transparent about all fees upfront, so that investors know the exact costs they will incur.
“As we join the digital wealth management industry, we are keen to show that a low cost online service leads to greater consumer control and clarity, without compromising at all on quality.”