Interactive Investor lowers stock and fund trading fees, but increases the charge on the standard investment plan
- Trading fees slashed by a third to £3.99 on funds, trusts, UK and US transactions.
- Starting in September, the ii Core Investor price increases to £11.99 per month, from £9.99
- Investor Essentials expanded for clients with assets up to £50K, from £30K
DIY investment platform Interactive Investor has announced further cuts in stock and fund trading fees, but has increased the charge for its standard investment plan.
Starting September 1, it will charge £3.99 per trade for UK and US stocks, ETFs, mutual funds and funds, a third less than the current fee of £5.99. This will apply to all your investment plans.
The charge for its standard investor plan will increase by £2 to £11.99, but II said subscribers to this plan will be able to gift two family members or friends a free subscription, without paying the going rate of £5.
Investment platform Interactive Investor has reduced its trading fees by a third
The basic plan for entry-level investors will continue to be priced at £4.99 per month, but will be extended to clients with £50,000 worth of assets, from the current £30,000.
Online trading in international stocks outside the US will also be reduced by 50 per cent to £9.99 on lowest cost and basic pricing plans, while super investor clients will still pay a lower rate of £5.99.
The fee cuts come as competition between low-commission investment apps intensifies, with rival Hargreaves Lansdown dropping some of its fees for buying and selling investments in April.
Since April, Hargreaves clients who invest regularly via direct debit are no longer charged £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 used to charge £10 per trade.
Interactive Investor chief executive Richard Wilson said: “These adjustments reflect our relentless drive to innovate and deliver unrivaled value, choice and the best customer experience in the UK.
“It means our high-value platform is now accessible to even more investors.”
The DIY platform claims that the latest changes to its pricing make it the best value provider among the top platforms for people with assets of £15,000 or more.
Jeremy Fawcett, head of Platform, said: ‘These changes from the interactive investor firm move up the extra rung at the bottom of the ladder, opening up II’s flat fee model to more investors.
‘This is essentially about behavioral economics. Flat fees clearly benefit people with larger pots, but that may be a future consideration for people just starting out on their investment journey.