Analysis by The Platforum shows how Transact’s new pricing structure compares with the charges of some of its rivals.
Transact announced today it is overhauling its charges to reduce costs by almost 15 per cent for an average portfolio of £180,000.
The changes mean that for portfolios between £60,000 to £180,000, the rate has been cut from 0.425 per cent to 0.325 per cent, and from £180,000 to £300,000 it has dropped from 0.375 per cent to 0.325 per cent.
A 0.5 per cent charge on funds under £60,000 will remain if there is less than £300,000 held in total.
For funds above £300,000 there is no change and 0.325 per cent will apply up to £600,000, when it will drop to 0.2 per cent for the next £600,000.
The Platforum has analysed platforms’ charging structures based on 20 per cent of the portfolio changing over the year, using in-house tax wrappers and with 20 trades per year.
The data is also based on the use of clean share classes, with 50 per cent of the portfolio held in an Isa and 50 per cent in a Sipp, all held in mutual funds.
The Platforum data shows the new pricing structure makes Transact cheaper than Ascentric for portfolios between £100,000 and £200,000 and cheaper than Standard Life for portfolios of over £180,000.
The charging structure also brings the platform into line with Ascentric’s charges on a £300,000 portfolio.
Under its old charging structure, Transact was the most expensive platform for assets of between £150,000 and £300,000.
Transact remains cheaper than Nucleus and Standard Life for portfolios of around £800,000 and above.
The Platforum managing director Holly Mackay says: “The impact of Transact re-jigging its pricing will not be felt by former Platinum clients with portfolios in excess of £300,000. This is an exercise to address competitiveness for those customers in the sub-£300k bracket.
“I do not see this as a dramatic jump and should not lead to any hysteria about pricing wars. This is just a strategic decision to improve competitiveness for mid-sized clients.”