Snappy new investing apps that promise simple, transparent pricing are charging about six times as much as traditional investment platforms.
ChipX, an account from the investing and savings app Chip, charges £3 a month and a platform fee of 0.25 per cent on top. If you invested £125 a month — £1,500 a year — it would cost you £39.75, or
2.65 per cent of the amount invested.
Hargreaves Lansdown, the UK’s biggest investment platform, charges 0.45 per cent, which works out at £6.75 a year on a £1,500 investment. With Hargreaves, you can choose from 14,580 investments; ChipX has 13.
ChipX’s fees are higher than the ongoing charges of the wealth manager St James’ Place, which includes financial advice.
Simon Rabin, the CEO of