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Bestinvest reveals D2C pricing structure

Bestinvest is the latest direct platform to announce its new pricing structure, with charges starting at 40 basis points, tiering down to 20bps.

Investments in GIAs and Isas will start at 40bps and tier down to 20bps above £250,000. Sipp accounts charge 30bps or 20bps over £250,000. There is no charge is for assets over £1m. 

All investments are charged equally, regardless of whether the underlying investment is held in a fund, investment trust, exchange traded funds or shares.

There are no initial or switching charges. Trades in listed securities cost £7.50. The charges will take effect from 1 March.

Bestinvest says the average annual management charge on premier selection funds is 0.66 per cent.

Bestinvest chief executive Peter Hall says: ”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.”

The Platforum managing director Holly Mackay says: “A simple 30bps fee on Sipp assets, including listed securities, and £7.50 a trade is very competitive. With no additional fixed fee for Sipp assets, this is a very clear statement of intent by Bestinvest. They want to be the go-to platform of choice for middle-England’s savers.”

Evolve Financial Planning director Jason Witcombe says: “The increased transparency of platform pricing is bringing about genuine competition. This is good news for consumers and savvy investors will ensure they shop around.”

D2C price comparison

Source: The Paltforum

* Our modelling here is based on fund portfolios of £10k, £50k and £150k and a mixed portfolio of £500k in funds and shares. Many investors hold a range of investments and the comparative cost of using different platforms may be significantly different to what we have illustrated here. The £10k portfolio is an ISA only; the others are half ISA half SIPP. For the £500k portfolio we have split the holdings 50:50 between funds and shares.The three lowest cost platforms for each portfolio are in bold.

  £10,000 £50,000 £150,000 £500,000

AJ Bell Youinvest

£121

£654

£1,662

£2,695

Alliance Trust Savings

£221

£805

£1,614

£2,422

AXA Self Investor

£131

N/A

N/A

N/A

Barclays Stockbrokers

£116

£579

£1,737

£3,232

Bestinvest

£121

£579

£1,738

£3,608

Charles Stanley Direct

£104

£642

£1,685

£2,928

Fidelity

£116

£579

£1,737

N/A

Halifax Share Dealing

£143

£632

£1,530

£2,338

Hargreaves Lansdown

£126

£629

£1,888

£3,451

Interactive Investor

£164

£664

£1,504

£2,344

TD Direct Investing

£118

£738

£2,003

£3,240

The Share Centre

£218

£902

£1,710

£2,518

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