Novia Platform Improves ETF Trading

Novia Platform Improves ETF Trading

The advisory platform has reduced charges and will aggregate trades

Editor, Europe
Reviewed by: Rachael Revesz
Edited by: Rachael Revesz

Advisory fund platform Novia has announced it will launch a new trading facility for its end investors to buy and sell exchange traded funds (ETFs).

Novia, in partnership with broker Winterflood Securities, will provide advisers with an automated service to trade ETFs with reduced trading costs. Trades are aggregated to make further cost cuts, according to a statement from Novia.

The trading charge is 5 basis points, with an annual custody charge of 2 basis points. The discounted trading charge is £1 for trades below £10,000, and the maximum trading charge is £150.

These changes will take effect from 7 December, and the discounted rate for trades is applicable until 1 June next year.

Shaun Allwright, business development director at Novia said the new system will vastly improve ETF trading on the platform.

“We are witnessing a rapidly burgeoning ETF market and up until now one of the major barriers to entry into this market for many advisers has been the high trading costs,” he said. “We are thrilled that this new automated facility will enhance the accessibility of these investments on platform.”

Alex Kerry, head of Winterflood Business Services, said neither the Retail Distribution Review nor the current level of demand have created enough incentive for most platforms to build the right infrastructure.

“Our partnership with Novia allows advisers to access cutting-edge technology, with automated processes and aggregate trades, which can bring down the costs of investing and unlock the potential of ETFs for advisers and their investors,” he said.

A survey of 103 financial advisers by Source found that 82 percent of advisers want to see more ETF selection on their platforms.

Rachael Revesz joined in August 2013 as staff writer. Previously an investment reporter at Citywire, she has a background in writing content for retail financial advisors and has covered a wide range of subjects in finance. Revesz studied journalism at PMA Media, which has since merged with the Press Association. She also holds a B.A. in modern languages from Durham University, as well as CF1 and CF2 financial planning certificates from the CII.