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Trustnet rivals AJ Bell with launch of D2C platform

Trustnet has launched a direct to consumer platform, Trustnet Direct, with charges capped at £200.

Trust Direct charges 25 basis points, capped at an annual £200, with a minimum of £20. Dealing charges for funds and shares are £10, which fall to £6 for customers who carry out more than 10 transaction on Trustnet Direct in a month.

The wrap will be powered by direct platform Interactive Investor, which has launched a white-label service this month.

D2C rival AJ Bell Youinvest launched a similar charging structure in January, with investments charged at 20bps and a £50 quarterly cap.

Exit fees are £15 per line of stock, while holding a Sipp wrapper incurs an additional £120 plus VAT per year.

Reinvesting dividends costs 1 per cent with a £10 cap. Other event-driven charges also apply.

The data provider announced in December it was planning to offer a D2C platform.

The Platforum managing director Holly Mackay says: “The site shows us how much direct platforms have evolved over the last few years from a more basic shopping list of funds and tax wrappers. Trustnet’s fund research and ratings is helpful and will assist those looking for guidance rather than regulated advice.”

Price comparison table from The Platforum*

  £10,000 £50,000 £150,000 £500,000

AJ Bell Youinvest

£121

£654

£1,662

£2,695

Alliance Trust Savings

£221

£805

£1,614

£2,422

Barclays Stockbrokers

£116

£579

£1,737

£3,178

Bestinvest

£121

£579

£1,738

£3,608

Charles Stanley Direct

£104

£642

£1,685

£2,928

Fidelity Personal Investing

£116

£579

£1,737

N/A

Halifax Share Dealing

£143

£632

£1,530

£2,338

Hargreaves Lansdown

£121

£605

£1,815

£3,285

Interactive Investor

£161

£648

£1,456

£2,265

TD Direct Investing

£118

£738

£2,003

£3,240

The Share Centre

£218

£902

£1,710

£2,518

Trustnet Direct

£146

£773

£1,656

£2,465

* Scenario assumptions

£10,000 in funds within an ISA with 4 transactions per year

£50,000 in funds split equally between and ISA and a SIPP with 10 transactions per year

£150,000 in funds split equally between an ISA and a SIPP with 10 transactions per year

£500,000 – £150,000 in an ISA and £350,000 in a SIPP, each with half equities and half funds, with 10 transactions per year

The funds used are those that appear most on the buy lists of major UK platforms:

  • Artemis Income
  • AXA Framlington UK Select Opportunities
  • First State Asia Pacific Leaders
  • M&G Optimal Income
  • BlackRock Gold and General
  • M&G Recovery

Where we have not yet had details of specific fund charges we have used the charges found most commonly for the above funds.

2 With Fidelity you are unable to hold funds and shares in the same account (in ISA or Fidelity SIPP)

3 Hargreaves Lansdown has used its purchasing power to secure discounted rates on a number of funds – for the funds used in our analysis this discount is 0.048% and is recognised in the above table. Some of these discounts are made by unit rebates, which would be taxable for funds held outside a tax wrapper.

4 AXA Self Investor doesn’t have a SIPP. For new ISA investors there are no fees until 1st May 2015. Here we have used the pricing that will apply from then onwards. Until then the annual fee would only be the cost of the underlying funds, which would come to £80.83.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Stephen McCallum 12th March 2014 at 4:06 pm

    Dealing charges of £10 per fund and share? HL, Fidelity and a host of others offer no charge for fund dealing. That could be an obstacle to winning new business.

  2. These assumptions are getting ridiculous. I don’t know about other platforms but £150000 with ATS in ISA only – why do you have to assume I have a SIPP I’m paying £90 pa + about £750 for funds ( average 0.5%) why do I want to make 10 transactions ? and pay another £250. still no where near the £1614 quoted.

    My point is simply that the devil is in the detail and these comparisons run the risk of misleading. The only comparisons that matter are CLIENT SPECIFIC.

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