Bestinvest is introducing a 0.4% platform fee for investors with up to £250,000, which undercuts Hargreaves Lansdown, but is slightly above Fidelity's new charge.
Investors with up to £250,000 will pay the 0.4% fee, which drops to 0.2% for assets between £250,000 and £1 million with no charge on amounts above that.
However, it will not offer the tiering that Fidelity has introduced, meaning even investors with larger sums will still pay the full charge on their initial £250,000, as is the case with Hargreaves. Sipp investors will pay 0.3% on the initial £250,000 and then 0.2% on the middle tier with no charge above that.
Bestinvest has secured an average 0.66% annual management charge on funds, which compares to 0.65% for Hargreaves and 0.64% on Fidelity's Select List. There are no fixed fees for holding investment trusts with trades priced at £7.50. The Association of Investment Companies (AIC) hit out at Hargreaves for treating investment trusts as a seperate investment class and introducing a charge for holding them.
Chief executive Peter Hall (pictured) said: 'Our goal is to offer investors an exceptional value-for-money service that is underpinned by rigorous and unbiased research. We know from our years of experience that saving for retirement is one of the most critical personal finance challenges clients face.
'For the award-winning Best Sipp we have introduced an even lower service fee to enable clients to get the best possible outcome from their retirement savings.'