Barclays Stockbrokers has announced its new platform pricing model at 35 basis points for all fund investments with a cap on charges.
Barclays will operate a capped charging structure with a minimum fee of £35 per account a year and a maximum of £1,750, with no charges for fund transactions.
It will charge £30 plus VAT as an annual Isa account fee and £200 plus VAT as an annual Sipp account fee.
Share trading costs have been cut from £12.95 to £11.95.
The Platforum managing director Holly Mackay says the latest pricing announcements from the direct platforms reflect not so much a price war, but rather “a somewhat less epic price pub brawl”.
She says: “For providers supposedly at war, there is 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.
“The cost challenge is really coming from AJ Bell Youinvest, Alliance Trust Savings, Charles Stanley and Interactive Investor for larger accounts although – again – read the small print. By the time you have traded, transferred in a pension, and bought some funds, you might find there was not that much in it after all. The flat fee platforms are really worth looking at for investors with much larger portfolios.”
Source: The Platforum
£10,000 in funds within an Isa with four transactions per year
£50,000 in funds split equally between and Isa and a Sipp with 10 transactions per year
£150,000 in funds split equally between an Isa and a Sipp with 10 transactions per year
£500,000 – £150,000 in an Isa and £350,000 in a Sipp, each with half equities and half funds, with 10 transactions per year