A website has launched to enable easy comparison of direct to consumer investment platform charges.
Comparetheplatform.com has been created by Bella Caridade-Ferrira, chief executive of research firm Fundscape.
She said the site is to help consumers who would otherwise have to contact each of the platforms directly to obtain information about their charges.
Investors wrongly assume that platform costs are broadly the same, but fees can vary by a huge amount.Bella Caridade-Ferrira“Investors wrongly assume that platform costs are broadly the same, but fees can vary by a huge amount,” she said.
“Of course, price isn’t the only factor, but we help to clarify costs leaving investors to focus on what they want in terms of products and services.”
There are various fees that are charged by investment platforms.
Most will charge an annual fee and dealing fees if investors choose to buy and sell stocks and shares.
Occasionally, some charge a set-up fee or product fees. And most will have exit fees if investors want to move their money.
According to Comparetheplatform.com, typically, these costs average 0.8 per cent annually.
However, the Comparetheplatform.com calculator shows that an investment of £10,000 can see annual charges vary from just £12.50 to £153.60, whilst the difference in charges can be as high as £1,900 on an investment of £100,000.
Ms Caridade-Ferreira said: “This is just the first stage of the calculator.
“In the future investors will be able to compare platforms on a range of qualitative factors such as service, investment choice, and more. It’s about time investors were able to make informed choices.”
In a example given of a novice investor who has inherited £10,000, which he wants to place in a stocks and shares ISA, running the comparetheplatform.com calculator yields the following results:
| Platform | Annual fee | |
| 1 | Halifax | £12.50 |
| 2 | AJBell YouInvest | £25.00 |
| 3 | Close Brothers | £25.00 |
| Most expensive | iWeb | £200.00 |
Another the example given by Comparetheplatform.com is of an experienced investor who wishes to shift £100,000 of investments onto an investment platform.
Of this amount, £10,000 is in stocks and shares, and they plan to trade 12 times per year. The investor expects to invest her annual allowance of £15,240 into Isas in the future.
Running the comparetheplatform.com calculator yields the following results:
| Platform | Annual fee | |
| 1 | Cavendish Online | £250.00 |
| 2 | Clubfinance | £300.00 |
| 3 | Interactive Investor | £320.00 |
| Most expensive | Selftrade | £814.00 |
laura.miller@ft.com
