Transact has further cut its commission rates on portfolios and reduced the threshold for its 0.5 per cent annual commission in a move that will benefit 95,000 customers.
By April 2017, the investment platform will lower its charging threshold for clients to £120,000 from £150,000. This was already reduced from £180,000 to £150,000 at the end of 2015.
The firm has also decreased its annual commission charge to 0.30 per cent from 0.31 per cent.
As a result of the move, portfolios valued £120,000 will save over 25 per cent a year, equal to £126, the platform says.
Currently, portfolios valued £150,000 are charged at 0.5 per cent in annual commission on the first £60k of investments.
Clients with assets worth more than £120,000 will pay 0.3 per cent on the first £600,000, 0.2 per cent on assets between £600,000 and £1.2m and 0.075 per cent on any remaining assets.
The charge cut is a result of the growth in the platform’s scale, as it now has £24bn in assets, says Transact chief development officer Jonathan Gunby.
He says: “2015/16 was another successful year for Transact and our funds under direction now exceed £24bn. Our strong performance has enabled us to pass on even more savings to clients while still continuing to provide the best service in the industry.”