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 this year the fee for fund purchases, 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 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 of less than £1m with no buy commission for portfolios over £1m.
Dealing charges will also be reduced to £3.75, £1, and £0.50 for standard, phased and regular transactions.
Wrapper charges and overall portfolio charges tiered from 50 basis points to 7.5bps remain the same.
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. The new charging structure means that a fund purchase of £10,000 will cost a maximum of £10 in 2014 and £5 in 2015.”
Arch Financial Planning managing director Arthur Childs says: “The move is certainly a good thing for advisers. But many platforms do not charge dealing costs at all and I think these will eventually go as you are incur that charge on rebalancing.”