The Isa season ended officially with the tax year, but Britain's largest do-it-yourself investment platforms have increased the ante in their attempt to win investor funds by revealing new propositions.
Interactive Investor has announced the introduction of three subscriptions with monthly costs to replace the existing quarterly rate structure from 1 June.
Clients of Alliance Trust Savings, which I acquired last year, also switch to the broker's new pricing model.
Hargreaves Lansdown and Interactive Investor have raised the ante in their attempt to win investor funds in the ever-competitive DIY investment platforms marketplace
Meanwhile, Hargreaves Lansdown, the largest DIY online broker with £ 85.9 billion in assets under management, has unveiled a global equity fund, alongside existing UK growth and UK income funds under the banner of & # 39; HL Select & # 39 ;.
Interactive Investor introduces new monthly fee model
Currently ii customers pay £ 22.50 per quarter, which is £ 90 per year, but you can get it back in free transactions. Standard costs are £ 10 to buy or sell funds, shares, investment funds or ETFs, or £ 1 for regular monthly investments.
ii says the idea behind the new pricing structure is to enable customers to choose a more tailored approach that fits their needs.
The first option, also referred to as the & # 39; Investor & # 39; plan, charges a monthly subscription price of £ 9.99 on top of £ 7.99 per transaction for UK equities, ETF, mutual funds and trusts, with one free trade per month.
The second option, the & # 39; Funds Fan & # 39; plan, costs £ 13.99 per month, but has a reduced trading fee of £ 3.99 plus two free transactions from mutual funds or mutual funds per month.
Interactive Investor says it was inspired by entertainment streaming services such as Netflix when launching the new compensation model
The third and final option, the & # 39; Super Investor & # 39; plan, costs £ 19.99 per month and also charges £ 3.99 for UK share, ETF, fund and trust transactions. The price for a bumper subscription is the discounted cost of trading US shares from £ 4.99 as opposed to £ 7.99 for the other platforms.
In addition, other international shares cost £ 9.99 – £ 10 less than the price charged in the other two plans.
Will it cost investors more?
Well that depends on your investment habits.
The new pricing model means you get better value in the long run, but not everyone will feel better right away, says Moira O & # 39; Neill, ii & # 39; s head of personal finance.
& # 39; This is because the fixed price has increased, while trade costs have been reduced across the board & # 39 ;, she says.
& # 39; It is therefore investors who are most actively involved in and manage their investments that will benefit the most. Although the monthly costs in the Investor package increase by £ 2.50, the transaction costs decrease by £ 2. & # 39;
If you are the type of investor who has not made any transactions outside of your allocated credits under the current pricing system, you pay £ 30 more per year to the & # 39; Investor & # 39; plan.
But if you were to trade once a month, you would pay exactly the same as before, while an investor trading twice a month would save £ 24 a year.
According to the financial services consulting firm, the langcat, the flat rate model is the most cost-effective for those with pots over £ 50,000 (as opposed to uncapped percentage-based costs).
Steve Nelson, consulting director at the lang cat, says: “Of course, this is simply basic arithmetic in action and it will depend on individual circumstances such as trade levels, contributions and investment types, but such savings can amount to thousands of pounds on an investment in the medium to long term. & # 39;
Hargreaves adds worldwide equity to the fund offering
The HL Select Global Growth Shares searches & # 39; the world's leading stock markets for the best long-term investment opportunities.
It will be managed by the same team as the other & # 39; HL Select & # 39; funds led by Steve Clayton, stock broker at the stockbroker.
The portfolio, which will be launched on May 3 for a fixed launch price of £ 1, focuses primarily on capital growth in the longer term. However, the investment team expects the fund to pay out a dividend – although no income targets have been set.
It usually consists of 30 to 40 names, is in the global sector of the Investment Company and is compared to the FTSE All-World index – but does not take the composition of the index into account when compiling a portfolio.
The HL Select Global Growth Shares fund has a continuous charge of 0.6 percent and is exclusive to the platform that charges an administration fee of 0.45 percent per year.
You should invest £ 100 in advance or £ 25 per month to invest in the fund.
Clayton says: & # 39; Worldwide investing opens up new opportunities to find truly exceptional companies from a much larger number of options. We try to identify great companies, wherever they are in the world, with strong balance sheets and to own them for the long term.
& # 39; We are looking for companies in charge of their own destiny, who will grow through thick and thin, regardless of things like the Brexit.
& # 39; By taking a cautious approach to debt, we hope to protect investors from the worst of all future recessions while taking advantage of the increases. & # 39;
The AIC launches set of tools for investors who are looking for income
Another notable development is the launch of a set of tools and resources to assist those who invest for income in tracking and analyzing dividend-paying investment funds by the Association of Investment Companies.
The service, called Income Finder, offers investors the opportunity to create a virtual portfolio of income-paying investment companies, track the dividend dates and see how much income they can receive in a year.
Ian Sayers, chief executive of the AIC says: & # 39; Last year there was a record number of visitors to our website and we hope Income Finder will be a useful tool to help investors make choices. & # 39;