Online wrap provider Novia has today announced it will be launching a new low cost trading facility, developed with Winterflood Business Services.
The new automated option is set to go live on 7 December and will enable Novia to offer clients significantly reduced trading costs for exchange traded funds.
Trading charges are also aggregated, enabling the end client to benefit from possible further reductions in cost.
Additionally Novia have secured a discounted rate for trades made before 1 June 2016.
The new exchange traded fund trading tariff from 7 December will be, firstly, trading charges at five basis points, annual custody charges at two basis points, discounted trading charge of £1 for trades below £10,000 and a maximum trading charge of £150.
Novia said advisers can also benefit from its existing innovative technology which enables ETFs to be held within model portfolios, both adviser run and DFM based, meaning the trading costs inherent when rebalancing and realigning these models will now also be reduced.
Shaun Allwright, business development director at Novia, said: “These costs are arguably some of the lowest we have seen in the market and will revolutionise ETF trading on platform.
“We are witnessing a rapidly burgeoning ETF market and up until now one of the major barriers to entry into this market for many advisers has been the high trading costs.
“We are thrilled that this new automated facility will enhance the accessibility of these investments on platform. Copia will also benefit from these reduced trading charges.”
Alex Kerry, head of Winterflood Business Services, said: “Despite the RDR being widely expected to level the playing field for products such as investment trusts and ETFs, many of these products are still not widely available through advisers.
“Neither the RDR nor the current demand tailwind, have created enough impetus for platforms to build the required infrastructure.
The discounted rate for ETFs comes after two of the largest fund supermarkets announced they would not rush to follow FundsNetwork’s lead and offer exchange-traded funds and investment trusts.
Both Cofunds and Old Mutual Wealth claimed that offering third party investment opportunities were not considered an immediate concern due to “low levels of demand”.
ruth.gillbe@ft.com
