Platform pricing report: Average costs cut by 18% vs. pre-RDR

Average investors have seen their platform costs tumble by almost a fifth in the last five years, according to research by the lang cat, but advisers are not favouring the cheaper options.

The consultancy's research found the typical custody cost for the current average portfolio size of just under £200,000 has fallen 7bps since 2011, from 0.38% to 0.31% - a reduction of 18%. But despite the benefits to investors - who are on average saving £140 a year as a result - cost is seemingly low on advisers list of priorities when choosing a platform, with the consultancy finding ‘no real evidence pointing to a disproportionate amount of assets flowing into cheaper propositions'. In fact, for a time more assets were put on the more expensive platforms, though that has now evene...