Chelsea Financial Services is cutting its headline annual charge from 0.5% to 0.4% from 6 April, as it moves to compete with rivals in the direct to consumer (D2C) space.
The discount broker - which operates via Cofunds - has also secured a lower annual charge from the platform, reducing the fee from 0.25% to 0.2%.
Chelsea is not introducing any additional fees for telephone dealing, sending paper statements or for exit.
Chelsea's headline reduction from 0.5% to 0.4% applies to clients with up to £250,000 invested with the broker.
While all clients will pay 0.4% on their first £250,000, they will pay 0.35% on the next £250,000-£500,000.
Using the tiered system, the charge is then 0.3% on £500,000-£1m, and 0.25% on assets between £1m-£2m. Anything over £2m will not be charged.
Darius McDermott (pictured), managing director, said: "There is always someone who will do a job cheaper, but that doesn't mean they'll do it better.
"It pays to read the small print that comes with some of the so-called low-cost deals which have been announced in the past few weeks. With Chelsea, there are no additional charges, just simple, predictable pricing."
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