Interactive Investor reduces transaction costs for stocks and funds, but increases costs for the standard investment plan
Interactive Investor reduces transaction costs for stocks and funds, but increases costs for the standard investment plan
- Trading fees reduced by a third to £3.99 for UK and US funds, trusts, transactions
- From September the core investor price of ii rises to £11.99 per month from £9.99
- Investor Essentials extended to clients with assets up to £50,000, from £30,000
Do-it-yourself investment platform Interactive Investor has announced further reductions in transaction fees for stocks and funds, but increased fees for its standard investor plan.
From 1 September, you will be charged £3.99 per transaction for funds, ETFs, mutual funds and equities in the UK and US – a third less than the current fee of £5.99. This applies to all of its investment plans.
The cost for the Standard Investor plan goes up by £2 to £11.99, but I mentioned that subscribers to this plan are allowed to gift two family members or friends a free subscription, without paying the current £5 fee.
Investment platform Interactive Investor has reduced transaction costs by a third
The essentials plan for entry-level investors will remain priced at £4.99 per month, but will expand to customers with assets worth £50,000, up from the current £30,000.
Online transactions in non-US international stocks will also be slashed by 50 per cent to £9.99 for lower fees and core pricing plans, while super investor clients will continue to pay a lower rate of £5.99.
The cost cuts come as competition between low-commission investing apps intensifies, with rival Hargreaves Lansdown slashing some of its costs for buying and selling investments in April.
Since April, Hargreaves customers who invest regularly by direct debit no longer have to pay £1.50 to buy and sell shares, mutual funds and exchange-traded funds.
Interactive Investor has cut its trading fees by 65 per cent compared to five years ago when it charged £10 per trade.
Interactive Investor CEO Richard Wilson said: ‘These changes reflect our relentless drive to innovate and bring unparalleled value, choice and the best customer experience to the UK.
“It means our great value platform is now accessible to even more investors.”
The DIY platform claims the latest changes to its pricing have made it the best value provider among the major platforms for those with assets over £15,000.
Jeremy Fawcett, head of Platforum, said: ‘These changes from interactive investors move to the extra rung at the bottom of the ladder, opening up II’s flat fee model to more investors.
‘It’s essentially about behavioral economics. Fixed fees clearly benefit those with bigger pots, but that may be a future consideration for people starting their investment journey.”