We're one of the few platforms that have our own in-house exchange dealing desk. We’ve been a member of the London Stock Exchange since 2008, meaning we can deal in real time throughout the whole time the markets are open; we aren’t limited to placing bulk trades only once a day.
Trading throughout the day helps us to give you more control over exactly when you buy or sell, often generating significant savings for your clients from improvements we secure on bid offer spreads in the market.
During 2021, our dealing desk processed around 368,000 client orders and delivered c.£818,000 price improvements. That translated to an average 12.79 bps saving per trade over the period. Over the longer term, that could offset a signification portion of the platform charges.
If we assume that a fully invested portfolio of £180,000 (based on our average Platform portfolio value) will grow at 4.5% a year (net of charges) for 30 years, and based on our statistics 62.5% of holdings are switched over the course of a year, then we could expect to see a final portfolio value of £674,157. When this scenario includes the 12.79bps price improvement on both the sale and purchase, the effective growth rate on the switched assets become 4.77% resulting in a weighted return on the portfolio of 4.67% which would then give a final fund value of c. £707,274. Platform fees over the period would be £36,014 and the improvement being £33,117, the Dealing team offsets 92% of the charge.
As well as the advantages that come with being able to trade throughout the day, our all-inclusive charging structure means there are no additional costs for direct market trading, which is unique in the UK platform market.
“For a portfolio invested in exchange traded assets, the price improvement could equate to about 92% of the platform fees over 30 years.”