One of the biggest do-it-yourself investment platforms has cut its online dealing charge by 25 per cent.
Interactive Investor will reduce investors’ dealing fee from £7.99 to £5.99 for standard investing or Sipp accounts from September 1, down from £7.00.
In an announcement today (August 1), the company said this does not impact the free first trade for those on the investor and super investor service plans, though the expiry date on the free monthly trades will be reduced from 90 days to 31.
Those on the super investor plan will also see the cost of online trades in non-US international trades drop from £9.99 to £5.99 per trade.
Interactive Investor’s chief executive, Richard Wilson, said: “Investors can’t control the markets, inflation or interest rates. But they can control their investment costs – and over the long run the savings can be huge.”
DIY investing has risen in popularity over the past few years, with direct to consumer platforms seeing record gross flows of £41bn and net sales of £17bn in 2021.
There has also been a flurry of mergers and acquisitions in the space, with the purchase of Novia and Wealthtime by AnaCap, James Hay's owner Epiris buying Nucleus, and Preservation Capital Partners buying Parmenion.
Interactive Investor was bought by Abrdn last year for £1.4bn, and now operates as a standalone business within Abrdn’s "personal vector" division.