Barclays Scraps Monthly Fee for Direct Investing Customers

Barclays announced that customers using its Direct Investing service will no longer pay a monthly customer fee. 05 percent on amounts above that level. A customer holding a £50,000 portfolio will save £125 a year under the new structure.

Barclays said its research shows that low fees and charges rank as the most important factor for people choosing an investment service. The bank will continue to charge £6 for each share trade. No fee applies to buying or selling funds, though fund managers levy their own ongoing charges.

Foreign-exchange costs may still apply to international share trades, and customers face no exit fees if they decide to leave the platform. Under the revised pricing, a customer with £10,000 in shares who places six trades a year will pay £36, compared with £61 previously, for a saving of £25. Barclays said the move forms part of its effort to help close the UK’s investment gap.

Sasha Wiggins, chief executive of Barclays Private Bank and Wealth Management, said removing the customer fee will help to “make it more straightforward for people to take the next step and invest with confidence”. Previous Financial Conduct Authority research found that about seven million adults hold more than £10,000 in cash savings and could be missing out on the potential benefits of investing.

The regulator has noted that people are often advised to keep emergency funds in cash but that excess holdings may limit long-term financial goals.

Regulatory changes effective from April 6 allow some firms to offer targeted support, enabling customers to receive guidance based on what the firm would recommend to people in similar situations.