interactive investor, the UK’s second-largest investment platform for private investors and number one flat fee provider, is cutting trading fees by a third.
ii will introduce a market leading ultra-low trading fee of £3.99 for funds, ETFs, investment trusts and UK/US trades.
Simplicity and impartiality continue to be front and centre of ii’s proposition. With a flat monthly platform cost and the same trading fees for UK/ US shares, funds, investment trusts and ETFs, customers can choose the right investment for them.
The changes will apply across all ii’s service plans, with a raft of wider changes, all coming into effect from 1 September 2023.
At the same time, after keeping the flat monthly fee unchanged for four years, ii has increased the Investor (£9.99) subscription plan by £2 per month, (£11.99).
The subscription fees on all ii’s other price plans, including its £12.99 per month Pension Builder plan and £4.99 Investor Essentials price plan, are unchanged.
ii has also broadened its fantastic value, entry-level Investor Essentials price plan (£4.99 per month) to more customers, extending the assets cap to £50,000 from the current £30,000.
ii will move tens of thousands of qualifying customers that it calculates will be better off in Investor Essentials on to this lower cost price plan, which comes with the same full fat range of choice.
Even with the adjustment on ii’s Investor price plan, all these changes combined mean that interactive investor is now unambiguously the best value provider among the major platforms for people with assets of £15,000 upwards.
That’s according to calculations by financial services consultancy the Lang Cat, assuming a 50/50 equities/fund split and an even number of fund/equity trades.
The changes come at a time when ii has rapidly cut trading costs. Only 5 years ago ii charged £10 per trade, reducing to £7.99 in 2019 and £5.99 in 2020, and down to £3.99 from 1 September 2023. That’s a 65% decrease in 5 years.
Richard Wilson, CEO, interactive investor, says: “These adjustments reflect our relentless drive to innovate and bring unrivalled value, choice and the best customer experience to the UK. It means our great value platform is now accessible to even more investors.
“When we last repriced four years ago, we were the best value major platform for people with more than £50,000. From September, we are best value from £15,000 upwards, and the more you invest, the bigger the savings because of our flat fee.
“As part of the changes we have increased our monthly subscription fee in our Investor price plan, introduced free friends and family accounts and reduced trading commission again to make investing as friction-free as possible.
“At the same time we are moving tens of thousands of qualifying customers in our Investor price plan on to our lower cost £4.99 per month Investor Essentials plan, having extended this package out for more customers.
“Taken together, these changes will make ii the go-to platform for more investors than ever.”