interactive investor confirms flat fee model and announces new pricing

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  • interactive investor selects flat fee model for integrated and expanded business.
  • New pricing is simple and fair, customers gain flexibility on when and how they invest:

­           - No percentage based custody charges.

­           - £22.50 quarterly payment per customer and trading credits of the same value.

­           - £10 per trade, £6 for frequent traders.

­           - £1 fixed commission for regular investments and dividend reinvestments.

  • Independent analysis* from Platforum (see notes to editors) shows considerable savings available from interactive investor’s new pricing and states: “The arrival of a scale flat fee model in the guise of the enlarged interactive investor platform is a significant development for online personal investing”.
  • Enhanced international trading and the ability to hold and settle in nine currencies.

London, 24 October 2017. interactive investor (ii), the UK’s second largest online stockbroker, confirms that its flat fee model and unique flexible quarterly trading credits will underpin the enlarged company’s new price structure as it announces new pricing and expanded services four months after acquiring TD Direct Investing (TDDI).

interactive investor has retained its pricing model throughout the expanded group and responded to customer feedback through the introduction of greater account flexibility and a wider range of customer services.

“We believe our pricing offers great value for self-directed investors”, said Richard Wilson, interactive investor CEO. “Customers who use their trading credits through reinvesting dividends, regular monthly saving or more active investing, in effect pay no Trading account or ISA fees at all. Even for investors who don't trade often, our new pricing is highly attractive to those who have a reasonable portfolio, or are looking to build or consolidate assets, relative to platforms which charge a percentage fee for custody.”

Jeremy Fawcett, Head of Platforum, said: “The arrival of a scale flat fee model in the guise of the enlarged interactive investor platform is a significant development for online personal investing. Investors are becoming more cost-conscious and price is becoming a bigger factor in platform selection.  interactive investor’s new pricing model makes it good value for its target market of engaged investors or those with average and larger portfolios. From a cost perspective, the pricing works well for investors looking to consolidate reasonably-sized pots in one place”.

Summary of key ii pricing:

  • No percentage based custody charges:

Simple, fair and transparent flat fees offer a real alternative to traditional percentage-based providers, which become increasingly expensive as assets grow.

  • £22.50 quarterly trading credits:

£22.50 fixed quarterly payment per customer – with equivalent £22.50 of trading credits which can be used to pay for all trade commissions, including regular investments and dividend reinvestments. Commission credit can be accrued up to £90, giving greater flexibility on when to trade as customers won’t lose unused credits at the end of each quarter.

  • Two commission rates - £10 per trade and £6:

The standard commission rate will be £10 and frequent traders - those who trade an average of 10 times a month - will pay just £6 per trade.

  • £1 fixed commission for regular investments and dividend reinvestments:

Regular investing and dividend reinvestment commission will be fixed at just £1 – providing an attractive and market-leading option for investors to build their portfolios.

  • Improved international trading:

All customers will be able to trade directly on international exchanges - and hold and settle in up to nine foreign currencies – avoiding the need to perform a currency transaction for every trade.

Commenting on the announcement, Richard Wilson said: “Our ambition is to become the UK’s best investment platform, providing great value and excellent services for the engaged investor. We have achieved a Trustpilot rating of 8.1, which is evidence of our focus on customer service. The new integrated business takes the best from both interactive investor and TDDI, such as the flat fee, which will benefit many of the TDDI customers, and the ability to hold and settle in up to nine currencies, which will be new to ii customers”.

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