An execution-only platform is launching in January, becoming the latest platform to cap charges at £200 a year.
The Daily Telegraph reports that Trustnet Direct will charge 25 basis points, capped at an annual charge of £200. There is also a £10 dealing charge, with discounts for frequent traders.
Investments in clean funds and structured products on Youinvest, formerly known as Sippdeal, will be charged at 20 basis points, with a £50 quarterly cap, while investments in a Sipp wrapper will incur a £25 custody fee for assets over £25,000. Dealing charges will be £4.95 per deal.
On the launch of Trustnet Direct, investor guidance website Candid Money founder Justin Modray told the Telegraph the platform was a welcome new entrant to the market, but rivals such as Youinvest, Interactive Investor and Alliance Trust Savings may be cheaper for many consumers.
He said: “Trustnet’s big challenge will be to give customers significant added value using its vast investment data systems and tools. If it can pull that off then Hargreaves Lansdown should be very worried, if it isn’t already following the influx of much cheaper rivals.”