Direct-to-consumer platform Strawberry Invest, run by Exeter-based advice firm Prydis, has cut its fees by five basis points after signing up 150 clients in its first three weeks after launch.
The firm white-labels IFDL technology to offer a self-serve platform which was originally priced at 40bps for assets up to £50,000 and 35bps up to £250,000. It has shaved 5bps off both price bands.
Assets from £250,000 to £1m are still priced at 20bps while assets over £1m are charged at 10bps.
Strawberry launched last month with plans to cut fees as it hit certain business volume thresholds.
It says it has generated 5,000 site visits and has 150 clients registered to use the platform, triggering the cut to charges.
Strawberry Invest managing director James Priday says: “We launched Strawberry to provide private investors with a simple, low-cost way of investing.
“We have been bowled over by the response in such a short time and, as a result, we have passed those economies of scale on to our customers.
“This is retrospective too, so existing customers will also benefit from this fee cut. Strawberry Invest expects to be able to pass further cost reductions on to consumers within the coming months.”
Pavilion Financial Services adviser Claire Walsh says: “Conceptually, I like the idea because advisers do have clients that want to do some self-investing.
“They can do that through the likes of Hargreaves Lansdown now but there is a risk they end up leaving advice altogether.”