Why it pays to shop around for an investment platform
AIC releases updated cost comparison information to help investors save money.
With competition intensifying among investment platforms, the Association of Investment Companies (AIC) has released up-to-date information to help investors compare the costs of buying, selling and holding investment trusts and funds on platforms.
This follows the launch of new price plans from interactive investor on 1 February, a shake-up of Hargreaves Lansdown’s pricing effective from 1 March, and the inclusion of both ISAs and SIPPs in Freetrade’s Basic plan on 22 January1.
The AIC’s comparison tables are compiled by the lang cat and cover 16 major platforms. They are available here on theaic.co.uk.
Competition between platforms on pricing has made it easier than ever for investors to shop around for a cheaper deal. Clearly, costs aren’t everything, and service is important too – especially when it comes to issues like shareholder voting. Our comparison tables can help you make a more informed decision about where to hold your investments.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC)
The tables show which platforms offer investment trusts and give details of their charges for buying, selling and holding trusts and funds. Investors can also see heatmaps showing platform costs at a glance, indicating how much it would cost to hold various combinations of funds and trusts on different platforms. Costs can be viewed in pounds or percentages.
Costs can vary widely. For example, when holding a £100,000 portfolio of investment trusts in an ISA and trading four times a year, costs including trading and custody vary from £0 on the cheapest platform to £420 on the most expensive.
Similar information is available on theaic.co.uk for adviser platforms. An adviser log-in is required to view this, which can be set up for free.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “Competition between platforms on pricing has made it easier than ever for investors to shop around for a cheaper deal. Clearly, costs aren’t everything, and service is important too – especially when it comes to issues like shareholder voting. Our comparison tables can help you make a more informed decision about where to hold your investments.”
Steve Nelson, Insight Director at the lang cat, which compiles the comparison tables for the AIC, said: “There’s been noticeably more activity on pricing recently, and investors have more choice than ever. But costs still need to be understood in the round, and that’s where the AIC tables are really helpful, because they show the moving parts in one place and in plain English. It’s a strong starting point for narrowing the field to the platforms that look right for your portfolio and the way you trade.”
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Notes to editors
- The impact of all these changes is reflected in the tables on the AIC’s website.
- The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs, collectively known as investment companies. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 276 members and the industry has total assets of approximately £268 billion.
- For more information about the AIC and investment trusts, visit the AIC’s website.
- Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
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