D2C platform assets rise 78% in three years

The market for direct platforms has been ‘turned on its head’ as increasing segmentation of the investor universe and a number of new entrants to the space has boosted assets by more than 78 per cent in the past three years, according to The Platforum.

In a new report published today (6 February), the consultancy said three years ago the direct platform market stood at just £65bn of assets under administration and was made up of Hargreaves Lansdown and a few challenger discount broker brands.

Today, assets held have grown to £116bn with many more direct platforms now in the marketplace.

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Hargreaves Lansdown remains the “clear market leader” for direct platform propositions, the report states, although its pricing revamp means it now falls down on cost and are at the top end of the charging scale for larger portfolios.

Fidelity takes second spot, with Barclays Stockbrokers, Bestinvest and Charles Stanley all tied in third place.

Holly Mackay, managing director of The Platforum, said although Hargreaves’s costs are at the upper end of the scale, it offers a “great all-round service with a competitive price for £50,000 portfolios [which] makes them a strong contender in this space”.

Fidelity Personal Investing scored highly for its move to relaunch their service, with Ms Mackay stating this has been “very well executed”.

She said: “For less confident investors, this Isa season Fidelity could be a good solution for anyone needing a helping fund in putting an Isa together.”

Other propositions on the list include Interactive Investor, The Share Centre, AJ Bell Youinvest, TD Direct Investing, Alliance Trust Savings, JP Morgan Wealth Manager + and Willis Owen.