AXA waives annual fees until May 2015 under new pricing structure
AXA’s Self Investor service will charge customers an annual fee of 0.5% from 1 May 2015, which equates to £50 a year on a £10,000 investment.
This is compared to Hargreaves, which will charge most customers 0.45% a year.
However, AXA is waiving its fee until May 2015 for new customers who open a stocks and shares ISA but who invest before 6 April 2014, regardless of how much is invested.
DIY investment platforms such as Charles Stanley Direct, Interactive Investor and Hargreaves Lansdown have been revealing their new fee structures ahead of April 2014, the deadline for when all new customers’ money must be put in commission-free or ‘clean’ funds.
Fidelity will be the next to announce its fee structure tomorrow.
Last week, Hargreaves Lansdown, which has 500,000 clients, announced that from 1 March it would charge annual fees of 0.45% for investments of up to £250,000, 0.25% for investments of between £250k-£1m, and 0.1% for investments over £1m.
Hargreaves said its new fund charges would save its clients £8m a year in total.
AXA launched the Self Investor platform last year for financial advisers wanting to offer execution-only services to their clients. This is the first time the company has marketed to the consumer directly.