The Financial Conduct Authority (FCA) has moved a step closer to banning exit fees for investment platforms.
More than 150 years after the first investment trust came into existence, trusts are still gaining popularity among direct investors. However, the investment environment today is very different from that in 1868 when the Foreign & Colonial trust was launched to offer private investors access to international investment opportunities.
In a financial world where transparency for consumers has become a huge buzzword in recent years, one of the biggest relics from a past, non-digital age is the platform exit fee.
Interactive investor has permanently scrapped exit fees for all its customers.
The fund supermarket, the parent company of Money Observer, temporarily removed exit fees last December as it prepared to merge with TD Direct.
We have run queries on the letters pages of previous issues of Money Observer from readers concerned about the safety of the investments they hold on broker platforms in the event of their broker going to the wall. We’ve reassured them that rules set out by the Financial Conduct Authority (FCA) mean their funds (and cash) must be held in a separate nominee account that cannot be raided by a broker or its creditors if the firm goes out of business.
When a leading platform overhauled its pricing and services last summer, grumbling was heard across the market, while some investors threatened to take their business elsewhere. Exactly how many people followed up on that threat is unknown, but there’s little doubt that some were prompted to consider their options.
The deal will create the second largest online broker in the UK, serving 300,000 customers with £18bn of investments under management.
Wealthify offers exchange traded fund-focused portfolios at a minimum investment threshold of £250.
Providers have been inundated with calls from curious savers and those looking to access their cash.
Online trading company IG Group has launched a new execution-only stockbroking platform aimed at active traders.