Interactive Investor said it wants to create better value and help make investing simple, with the changes coming into effect from 1 October 2020.

Most of the changes relate to the Interactive Investor SIPP, where a number of administrative charges will be removed.

The £10 per month income drawdown fee will be scrapped, along with a number of other charges.

For example, there will no longer be a charge for uncrystallised funds pension lump sum (UFPLS) withdrawals. Pension sharing and annuity purchase fees will also be scrapped.

Going forward, SIPP investors will pay £10 per month for their SIPP, along with a service plan charge.

The service plan charge, from £9.99 per month, gives customers access to a trading account, a stocks and shares ISA, and as many free junior ISAs as they have children.

Richard Wilson, CEO of interactive investor, said: “Last year we switched to a much-welcomed Netflix-style monthly subscription charge. Earlier this year we successfully introduced free regular investing. All this to make things simple and clear so customers can choose what is best for them and have an easier investing experience.

“Now we are going one step further and cutting our eight pages of charges down to two. The biggest winners here are customers of our award-winning pension who pay £10 a month for their SIPP. Now all other SIPP administration charges, including drawdown fees, have been scrapped.

“So, as well as making life simpler for our existing 350,000 plus customers, it makes financial sense for even more to take advantage of our simple flat fees.”

There will be no change to Interactive Investor’s individual investor plans’ flat-fee charging model.

Each plan – Investor, Funds Fan and Super Investor – has a fixed monthly flat fee, in pounds and pence, and different trade charges to suit any investment style. It’s free to join and leave.