Barclays to take on Hargreaves Lansdown by rebating commission

Barclays Stockbrokers is looking to rebate trail commission for investors either in part or in full in the coming months, Wealth Manager understands.

The stockbroker is also understood to be reviewing the initial charges in its fund market, which range from 0% to a maximum of 0.5% depending on the fund.

The move to rebate commission, which is usually around 0.5%, and cut initial charges would make Barclays more competitive with other discount brokers that already rebate trail commission, such as Hargreaves Lansdown.

Hargreaves Lansdown imposed a new flat-fee on tracker funds, as well as some actively managed funds, at the end of December, costing either £1 or £2 per share per month

Hargreaves Lansdown also charges 0.5% a year on investing in ETFs, investment trusts, shares, gilts and bonds, which is capped at £45 if investing through an ISA.

In terms of other costs, Barclays Stockbrokers has no administration charge for ISA investors fully invested in the firm’s Funds Market.

If not invested in this Funds Market, the charge is £30 plus VAT for up to, and including, £7,500 or £50 plus VAT for more than £7,500 invested.

For dividend reinvestment, Barclays charges 1% of the value or a maximum of £7.50. Meanwhile Hargreaves Lansdown allows for dividend reinvestment free of charge.

Barclays Stockbrokers declined to comment.