IFAs should no longer find it difficult to give clients advice on the complex and diverse chargin...
IFAs should no longer find it difficult to give clients advice on the complex and diverse charging structure of share dealing online.
Financesupermarket.com, a site designed to help IFAs source financial services products, now has a "finder" capacity which allows the comparison of 136 online share dealing accounts.
Launched in June 2000, Financesupermarket.com was originally designed to help people source mortgage deals in the United Kingdom, and offered information on all credit cards, personal loans and saving accounts including cash ISAs.
Share dealing is financesupermarket.com's first move into this area of the market.
By inputting the number of trades their clients make on average per quarter, the average amount of these trades, and over what time period they want the "finder" to calculate the most cost-effective service, IFAs can obtain a results table listing every available account in the order of lowest cost for their client.
To demonstrate how diverse the charging structures are, an investor making 12 trades per quarter with an average trade size of £1000, will find the cheapest service for over one year would be Comdirect at a cost of £360 and the most expensive would be Fastrade with a cost of £1440.
There is also a facility built into the "finder" that allows the IFA to enter details of their client's existing stockbroker service to calculate how much they could save or low by switching to another stockbroker service.
If an investor signs up for the share dealing rate alert service, their trading scenario is recorded, including which account was the most competitive for their situation at that time. If a cheaper account comes onto the market in the future, an automated alert will be sent to the investor giving notification and detailing exactly how much they can save by transferring to a different online stockbroker.
"In addition, if an IFA has their own white-labelled version of financesupermarket.com they can earn a commission of £1.50 per click through on their site," says Mr Nixon, financesupermarket.com ceo.
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