Set to go live on 7 December, the new automated option was developed together with Winterflood, and according to Novia enables it to offer reduced trading costs for ETFs.
The new ETF trading tariffs from the 7th December will be as follows: a trading charge of 5bps, an annual custody charge of 2bps, a discounted trading charge of £1 for trades below £10,000 and the maximum trading charge will be £150.
The trading charges are aggregated, enabling the end client to benefit from potential further reductions in cost, Novia said. The company’s existing technology already allows ETFs to be held within model portfolios, meaning the trading costs will now be reduced when rebalancing and realigning these models.
Alex Kerry, head of Winterflood Business Services, said: “Despite the RDR being widely expected to level the playing field for products such as investment trusts and ETFs, many of these products are still not widely available through advisers. Our partnership with Novia allows advisers to access cutting-edge technology, with automated processes and aggregate trades, which can bring down the costs of investing and unlock the potential of ETFs for advisers and their investors.”