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Barclays Removes Monthly Fee for Direct Investing Customers

The bank says the change is meant to help close the UK’s 'investment gap' by lowering headline costs for retail investors, which could force rivals to cut charges.

Overview

  • Barclays confirmed on Thursday that it has removed the monthly customer fee for Barclays Direct Investing, ending the previous 0.25% charge on balances up to £200,000 and 0.05% above that.
  • The bank published example savings showing a £50,000 portfolio would save £125 a year and a customer with £10,000 in shares making six trades would pay £36 under the new pricing versus £61 previously.
  • Other costs remain in place: fund manager ongoing charges still apply, there is a £6 fee to buy or sell shares, ETFs, bonds and investment trusts, foreign exchange fees may apply on international trades, and there are no exit fees.
  • Barclays framed the move as part of an effort to close the UK's 'investment gap', citing Financial Conduct Authority research that about seven million adults hold more than £10,000 in cash and recent rules from April 6 that allow firms to offer targeted support to savers.
  • Industry commentators say the change will increase price pressure across direct-investing platforms and could nudge some cash savers toward investing, though customers should weigh risks and investment time horizons because values can fall as well as rise.