Execution-only broker TD Direct Investing has scrapped exit fees as part of an overhaul of its pricing structure.
The platform previously charged investors £25 per holding to transfer out of stock, while Isa plan transfers incurred a £50+VAT penalty. In addition, Sipp transfers were subject to a £75+VAT charge and a £25 per holding fee.
All of these charges have now been removed.
TD Direct Investing boss John Tracey says lack of transparency, complexity, cumbersome transfer processes and high exit fees “erode people’s trust in DIY investing”.
He adds: “It’s essential we, in the industry, listen to customers and start to implement necessary changes. This will help DIY investors have greater confidence in saving and investing on their own.
“We want to build an industry which supports rather than demands, and encourages rather than penalises. Ultimately, we believe investors should have the freedom to make their own investment choices, including which platform to use, and scrapping exit fees is an important first step.”
TD Direct has made a number of additional changes as part of its pricing restructure.
Telephone fund and unit trust trades, which previously incurred a £40 fee, are now free, while the £5 surcharge for international equity trades has been removed.
Charges on foreign exchange transactions have been reduced from 2 per cent to 1.5 per cent and the firm’s management fee switched from £10+VAT every quarter to £20+VAT every six months.
The management fee is waived where the investor has made a trade in the preceding six months, up from three months previously.
The firm has also applied to the FCA for regulatory advice permissions. It says it wants to provide customers with “non-personal, online advice”.