Have you ever checked your investment account fees and wondered if you’re paying too much? I know I have. It’s one of those quiet drains on returns that can add up over the years. Well, if you’re with one of the UK’s biggest investment platforms, things are about to change – and not entirely in the way you might expect.
The platform in question has just revealed a major overhaul to its pricing structure, the most significant in more than ten years. On the surface, it looks like good news: a noticeable cut to the main annual fee. But dig a little deeper, and you’ll find some new costs creeping in that could affect different types of investors in very different ways. Let’s unpack what this really means for everyday investors like you and me.
The Big Picture: A Fee Shake-Up Driven by Competition
The investment landscape in the UK has become fiercely competitive lately. New players are entering the market, established ones are slashing costs, and everyone is trying to attract more DIY investors. Against this backdrop, the decision to revamp fees feels like a necessary response to keep customers happy and portfolios growing.
According to the announcement, around eight out of ten customers will either pay the same or less once the changes kick in. That’s a bold claim, and it suggests the company is genuinely trying to deliver better value overall. But as with most things in personal finance, the devil is in the detail – and the detail here is quite layered.
Breaking Down the Headline Changes
First up is the reduction everyone is talking about: the core platform fee drops from 0.45% to 0.35%. For anyone holding funds, that’s a clear win. On a £100,000 portfolio, you’re now saving £100 a year in platform charges alone. Over a decade, with compounding, that adds up nicely.
But this isn’t just about funds. The changes also affect how shares, ETFs, investment trusts, and bonds are charged. Previously, many people enjoyed a very low cap on holding these assets in certain accounts. Now, that cap is rising significantly.
In my view, this shift makes sense from a business perspective – the old structure was probably unsustainable long-term – but it does create winners and losers depending on what you actually invest in.
What Happens to Share Dealing Costs?
Active traders are likely to cheer this part. The standard online share dealing fee falls from £11.95 down to £6.95 per trade. That’s a hefty 42% reduction for occasional investors. If you make ten or more trades a month, the fee drops even further to £3.95 for those doing twenty or more.
For anyone who likes to buy and sell shares regularly, this is genuinely good news. Lower dealing costs mean you can be more nimble in the market without fees eating into your profits as much.
Lower trading fees open the door for more active strategies without the previous penalty.
– Independent investment analyst
It’s refreshing to see a platform recognize that some investors simply prefer trading shares over funds, and reward them accordingly.
The New Fund Dealing Fee – A Potential Sting
Here’s where things get a bit trickier. From March onwards, buying or selling funds will cost £1.95 per trade – unless you’re using a regular savings plan. If you set up monthly Direct Debit investments, those fund deals remain free.
This change reflects how investor behavior has evolved. More people are dipping in and out of funds, perhaps chasing performance or rebalancing more frequently. Charging a small fee for each trade is a way to cover the operational costs involved.
For lump-sum investors or those who like to switch funds occasionally, that £1.95 might not seem like much. But if you’re making several trades a year, it starts to add up. The message is clear: regular investing is now even more rewarded.
- One-off fund purchases: £1.95 per deal
- Regular savings plans: free fund dealing
- Encourages disciplined, long-term investing habits
It’s a nudge toward behavior that benefits both the investor and the platform – steady contributions rather than frequent tinkering.
The Big Jump in Maximum Charges for Shares in ISAs and SIPPs
Perhaps the most talked-about change is the increase in the maximum annual platform fee for shares, ETFs, investment trusts, and bonds held in stocks and shares ISAs or SIPPs. Previously capped at £45 per year, this cap jumps to £150.
That’s more than triple the previous limit. For smaller portfolios, it might not matter much, but for larger holdings of listed securities in tax-advantaged accounts, the cost could rise noticeably.
I’ve spoken to several long-term investors who have kept their share and ETF portfolios in ISAs precisely because of that low £45 cap. For them, this feels like the end of an era. The “fee-free” ride for listed investments in tax wrappers is over.
The party has ended for those who have enjoyed low costs on shares in ISAs for years.
– Personal finance commentator
It’s a tough pill to swallow if your strategy relies heavily on individual stocks or ETFs rather than funds.
Ready-Made Pension Plans Get a Welcome Discount
On a brighter note, anyone using the platform’s ready-made pension solutions will see their all-in costs drop significantly. The total charge falls from 0.75% to 0.45%. That’s a substantial saving, especially for retirement savers who prefer a hands-off approach.
In fact, the company claims this now makes their managed pension plans cheaper than many workplace schemes. If you’re auto-enrolled into a default pension at work, it might be worth checking whether switching to one of these options could save you money.
It’s a smart move – encouraging more people to consolidate their retirement savings onto the platform while offering genuinely competitive pricing.
Who Really Benefits – And Who Might Pay More?
So, let’s cut through the noise. Broadly speaking, this overhaul is positive for most investors. The company estimates that only a small fraction – about one in forty – will see their monthly costs rise by £10 or more.
Big winners include:
- Regular investors using monthly savings plans
- Active share traders
- Those heavily invested in funds
- People using ready-made pension products
Potential losers are:
- Investors with large share, ETF, or trust holdings in ISAs/SIPPs
- Those who occasionally buy or sell funds without regular plans
- Older, more affluent clients who have used General Investment Accounts to hold listed investments cheaply
If you’re in the second group, it might be time to review your setup. Perhaps moving some holdings into regular plans or reconsidering your asset allocation could help mitigate the impact.
How Does This Compare to the Competition?
No fee discussion is complete without looking at rivals. Other major platforms have been busy cutting costs too. Some offer flat monthly fees, others ultra-low percentage charges on certain products.
After this change, the platform positions itself as more competitive than before, especially for managed solutions and active share dealing. However, for very large portfolios or specific strategies, other providers might still edge it out on pure cost.
The key point is that fees are only one part of the equation. Service quality, research tools, ease of use, and customer support all matter. Many investors willingly pay a bit more for a better overall experience.
What Should You Do Next?
The changes take effect from early March, so there’s still time to plan. Most platforms now offer fee calculators – plug in your portfolio details and see exactly how you’ll be affected.
Ask yourself a few questions:
- Do I invest regularly or in lumps?
- Am I mostly in funds, shares, or a mix?
- Are my holdings in tax-advantaged accounts or general ones?
- Do I value research and tools, or is cost my top priority?
Your answers will guide whether this overhaul is a net positive or something to adjust for. For many, it will mean lower costs and better value. For others, it might prompt a switch or a tweak in strategy.
One thing is certain: the retail investment world is evolving fast. Platforms that listen to customers and adapt will thrive. This latest move shows a willingness to evolve – even if not everyone loves every detail.
Whatever your portfolio looks like, staying informed about costs is one of the smartest things you can do as an investor. Small savings today compound into meaningful differences tomorrow.
What do you think about these changes? Have you run the numbers yet? I’d love to hear how it’s affecting your own investing approach.
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