Barclays Smart Investor removes £4 minimum monthly fee and fund handling fee

  • Barclays eliminates minimum monthly fees for new and existing customers
  • It also eliminated the £3 share trading fee for investors
  • How does New Deal compare to other DIY investing platforms?

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Barclays has scrapped the £4 minimum monthly fee for its Smart Investor platform in a bid to simplify its pricing structure.

Instead, the platform now charges a single fee to its clients based on a percentage of their investment balances, rather than a fixed monthly fee.

New customers will pay 0.25 per cent on investment balances up to £200,000, and 0.05 per cent above £200,000, regardless of what they choose to invest in.

The Barclays Smart Investor platform has eliminated fund handling fees for clients

The Barclays Smart Investor platform has eliminated fund handling fees for clients

Barclays will also remove monthly fees for existing customers, freezing fees at 0.2 per cent for funds and 0.1 per cent for all other investments.

The maximum monthly fee for existing customers remains at a maximum of £125.

Chris Wuerl, head of Barclays Smart Investor, said: “It is more important than ever that we enable more people in the UK to invest for their future – with inflation continuing to rise, and interest rates expected to peak in 2024, investment continues. in providing capabilities. To get the best returns in the long term.

“These changes to the Barclays Smart Investor program are the start of a range of improvements we will be introducing over the next 18 months to make investing easier, as well as more accessible and rewarding.”

Customers can invest from as little as £50 per month.

Barclays has also made changes to its trading fees, which were previously £6 per trade for UK and US securities and £9 for other international exchanges.

All stock trades will now cost £6, while financial transactions, which previously cost £3 to buy and sell, are now free.

Competition among DIY investment platforms has intensified over the past few years.

Platforms like Free trading* And Trading212, which offers clients commission-free stock trading, has challenged the big companies.

last year Hargreaves Lansdown* And Interactive Investor* (2) They both reduced their trading fees. II has also expanded its starter plan, which costs £4.99 per month, to customers with assets of up to £50,000.

We compare investment platform costs in our guide here.

How competitive is the new Barclays Smart Investor offer?

Barclays says its new flat fees will make it easier for customers to understand what they are paying, but is it a good deal?

Smart Investor is one of the very few platforms that offer free funds handling on their platforms, but stock trading remains at £6 which is higher than other platforms.

Interactive Investor (ii) charges £3.99, while iWeb charges £5 Best investment* He charges £4.95 per trade.

Freetrade’s free Basic plan, which gives access to a general investing account, offers commission-free trades and access to over 1,500 global stocks and ETFs, but no funds.

On the face of it, eliminating the £4 minimum monthly fee is a good deal. Barclays says a new customer who has £10,000 invested in funds in an ISA will pay £25 a year, compared to £48 previously.

However, by charging a percentage of your assets, the more you invest, the more you pay.

II charges a flat fee of £4.99 per month on investments up to £50,000, and trades in the UK and US cost £3.99.

This means an II customer would pay £60 a year, while a Barclays customer paying 0.25 per cent on £50,000 would pay £125 a year.

Likewise, a customer with £100,000 in investments would pay £11.99 per month with II’s Investor Plan, or £143.88 per year.

A Smart Investor customer with £100,000 will pay £20.83 per month, or £250 per year.

However, new Barclays clients with investment portfolios in excess of £200,000 receive a lower client fee of 0.05 per cent, meaning they will pay £8.33 a month, or £100 a year.

Existing customers will benefit from the £125 monthly cap but will not receive lower customer fees of more than £200,000.

(tags for translation) Daily Mail

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