Barclays has announced that customers using its Direct Investing service will no longer be charged a monthly customer fee, a move aimed at encouraging more people to invest. The bank's research indicates that low fees and charges are the most important factor when choosing an investment service.
Fee removal details
Previously, Barclays Direct Investing customers paid 0.25% on balances up to £200,000 and 0.05% above that level. With the fee removed, someone with a £50,000 portfolio would save an annual charge of £125. The bank noted that there is no fee for buying or selling funds, though an ongoing charge by the fund manager applies. The £6 fee to buy or sell investments remains unchanged.
A customer with £10,000 in shares who makes six trades annually would pay £36 under the new pricing, compared with £61 previously, saving £25. Foreign exchange fees may apply for trading international shares, but there are no exit fees if a customer chooses to leave.
Boosting investment culture
Barclays stated that the move is part of its commitment 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 "make it more straightforward for people to take the next step and invest with confidence."
Broader efforts are underway to boost an investment culture in the UK, amid concerns that some people hold significant sums in cash that could grow more strongly if invested. However, investments can go down as well as up, and individuals should consider their risk appetite and when they might need access to the money.
Market impact
Holly Mackay, chief executive of Boring Money, described the announcement as "a very big move which will shake up the direct investing market." She added that Barclays is drawing "a bold line in the sand" that will challenge fintech rivals and force established competitors to respond. "This move suggests that 2026 is going to shape up to be a very competitive year for the hearts, minds and investment wallets of middle England," she said.
