Transact has reduced its annual charges and aligned them with the cash rates it applies.
Alongside the charge cut, which will affect new and existing clients, three of the platform’s rates for cash deposits will increase at the same time.
The changes, which will apply from 1 April next year, will see all portfolios with over £60,000 charged less.
It says clients with a portfolio of £100,000 cold save £130 a year.
Transact has also reduced its discount threshold to £100,000 from £120,000 and introduced a lower pricing brand for portfolios over £5m.
Chief development officer Jonathan Gunby says: “We have removed the differentiation between the charges for investment and cash making price cuts in line with our responsible pricing approach. Successive price cuts have had a positive impact on our net flows and profitability while providing benefits to both advisers and their clients.
“Our funds under direction are now around £29bn and we are again passing on savings derived from our scale and specialisation in the platform market.”
Platforum research associate Andrew Ashwood says: “Transact has been one of the more active platforms in reducing charges. It has made four significant changes to its pricing model post-RDR, reducing the discount threshold from £300,000 down to £100,000. With an average portfolio size of around £190,000 on the platform, a great deal of users will now benefit from the lower 0.29 per cent rate on their whole portfolio.”
He adds: “Bringing the custody charges for cash holdings in line with investments makes it much clearer for both the adviser and client how to calculate the platform fee. Shaving basis points off the current pricing for all portfolio levels will attract current Transact users to consolidate client assets onto the platform.”