Crowdstacker will no longer be charging any fees at all for investors on any of its investment products, including its Innovative Finance ISA, the firm has said in a statement.
Fees charged to investors by Crowdstacker have always been lower than many other investment platforms but the firm has removed a nominal £15 transfer fee. This means that now investors incur no charges for investing via the platform. The firm does charge fees to borrowers.
Karteek Patel, CEO of Crowdstacker, says charging fees is at odds with the transparency often associated with disruptive finance.
“Despite being a major driving force behind the movement towards greater transparency in financial services, many alternative lenders, including the large well-known brands, still persist in charging investors,” he said.
“Fees may seem like a small cost at, for example, around 1 per cent, but unless these are totally removed a platform can’t really claim to be making the investment process as transparent as possible.”
“We want to support great British businesses which are innovating, creating jobs and supporting the home grown economy. And to do this we need to encourage everyday people to invest their money by offering good rates of return, simplicity and, now, the ability to do this without paying any fees.”