Analysis by The Platforum shows Transact’s new pricing structure makes it cheaper than Ascentric for portfolios worth between £100,000 and £200,000, and cheaper than Standard Life for portfolios over £180,000.
This week, Transact announced it is overhauling its charges from 1 June. The new structure will see the annual charge for investments fall by up to 15 per cent for an average portfolio of £180,000.
For portfolios of £60,000-£180,000, the charge has been cut from 0.425 to 0.325 per cent.
For portfolios of £180,000-£300,000, it has dropped from 0.375 to 0.325 per cent.
A 0.5 per cent charge on funds under £60,000 will remain if less than £300,000 is 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 combined Transact’s new charges with other any other costs, and mapped the total against other platforms’ charging structures.
Its data shows the new pricing structure makes Transact cheaper than Ascentric for portfolios of £100,000-£200,000 and cheaper than Standard Life for portfolios of over £180,000.
The new structure also brings it 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.
It remains cheaper than Nucleus and Standard Life for portfolios of £800,000 and above.
The Platforum managing director Holly Mackay says: “This is just a strategic decision to improve competitiveness for mid-sized clients.”
Jacksons Wealth Management managing director Pete Matthew says: “The more forward-looking platforms are realising clients and advisers are taking a closer look at charges.”