Transact is cutting its buy commission charge from 0.2 per cent to 0.05 per cent and its maximum dealing charge from £15 to £3.75 by March 2015.
The platform is cutting charges in two phases. With effect from 1 March buy commission will be halved from 0.2 per cent to 0.1 per cent. There will be no buy commission for portfolios over £2m and a 0.05 per cent charge for portfolios between £1m and £2m.
Dealing charges will also be halved from 1 March, which will be up to £7.50, £1.25 and £0.75 respectively, depending on whether transactions are standard, phased or regular.
With effect from 1 March 2015, buy commission will be cut again to 0.05 per cent for portfolios less than £1m with no buy commission for portfolios over £1m.
Dealing charges will also be reduced at that point, and will be up to £3.75, £1, and £0.50 for standard, phased and regular transactions.
Transact chief executive Ian Taylor says: “2013 was another profitable year for Transact and we are delighted to announce we will be reducing our charges not only this year but next year too. “We have a clear strategy of ‘responsible pricing’ and with prudent management and decision making we can pass on savings derived from our scale, efficiencies and specialisation in the wrap market.
“The new charging structure means that a fund purchase of £10,000 will cost a maximum of £10 in 2014 and £5 in 2015.”