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Charles Stanley Direct: Annual fees have been lowered, but it’s not all good news

Insiders score

infoMore info
This is the score our team have awarded the platform based on our own personal experiences and other important factors, such as fees and ease of use.

3.0out of 5

Charles Stanley has a more than 200-year history. It is listed on the London Stock Exchange and provides a wide range of financial planning and investment management services.

point6 month fee waiver when you transfer £200,000 or more.
pointUp to £1,500 cashback when you transfer your cash and/or investments to Charles Stanley Direct online investing platform
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By Clare West

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3.0out of 5

point 6 month fee waiver when you transfer £200,000 or more.
point Up to £1,500 cashback when you transfer your cash and/or investments to Charles Stanley Direct online investing platform

Clare's view

The Verdict

Average Success Rate

24.2%

infoCharles Stanley 5-Year Avg
The following dataset includes the performances of ready-made portfolios/funds offered by investment platforms and may include both actively and passively managed ready-made portfolios/funds. Performance indicated is also net of all fees to 31st January 2024, unless stated otherwise; any tiered fee structure will be disclosed. Ready-made portfolios/funds that include cryptocurrencies or any other securities outside cash and equities are not included in the dataset. The dataset only includes ready-made portfolios/funds which are explicitly advertised by their respective platforms as being for ‘beginners’, and which are exclusively offered by the platform itself. Funds which are managed by other providers and may be identically offered across multiple platforms were not included in this dataset. For example, the Vanguard UK All Share Acc. ETF was offered by Plum, but as it is not directly managed by Plum and customers could reasonably access it on multiple platforms, it was not included for the purposes of this research. Other discretely advertised securities or investments are not included.

24.8%

infoIndustry avg.
The industry average is the median average of all fund/ready-made portfolio performance figures we collated from 23 investment providers. To see the full dataset, visit X page.
Charles Stanley offers a really wide range of services for both DIY investors and those looking for a managed service.

As a DIY investor, you'll get excellent educational materials, research tools and data, including in-house broker analysis and forecasts, as well as the option to add personalised financial planning from Charles Stanley professionals, which can be a bonus if you're not confident making investment decisions entirely by yourself.

The choice of stocks you can invest is isn't as large as that offered by providers such as interactive investor, Saxo Markets and AJ Bell but it's extensive enough to serve most investors.

A ready-made portfolio is a pre-made collection of investments that have been put together by investment experts. They are designed to be a simple option for those who don’t want to choose individual stocks or funds for themselves.Ready-made portfolioinfo performance hasn't been spectacular. Over the past five years, the ready-made portfolios recommended as suggestions for those who don't want to pick their own individual assets have averaged 24.2% vs the industry average of 24.8%. The more adventurous funds have done better, but the cautious fund has fallen far below the industry average: something to consider if you are drawn to a ready-made solution.

So what about fees? Charles Stanley's headline annual fees are competitive and have recently been lowered to 0.30%. Good news, right? Well, not necessarily, because alongside this fee reduction has come a rise in the account fee minimum and maximum payments. Whereas the maximum you previously paid was capped at £240 per year, it's now £600. I used to say Charles Stanley was incredibly good value for large value portfolio holders. And for those with £500k+, it is still a potentially very cheap investment platform. However, those with less could find other platforms better value, particularly as there is now a minimum annual fee of £60 too.

In addition to that, dealing fees for stocks and ETFs are also some of the highest around (£10.00 per trade), and since the fee changes came into play, you'll also have to pay £4 to trade funds (except Charles Stanley Multi-Asset Funds, which have remained free). FX fees for trades under £10k in value are also high (1%) so if you're regularly trading non-GBP assets, you won't find this a cheap platform.

All-in-all, this isn't a bargain brand, but if you value personalised service and have a large portfolio, then you might feel it's still good value for money.

arrow-down-orangeRead More
quote

Pros

  • Fees can work out good value on large portfolios
  • No dealing fees on funds
  • Superb research content
  • In-house financial planning services
  • Capital Gains Report available on request - helpful for tax returns
  • All account holders receive £50 worth of trading credits every six months, in April and October
quote

Cons

  • Below average performance on ready-made portfolios for cautious and moderate risk rated portfolios
  • Very high dealing fees for trading stocks
  • High FX fees
  • Trading platform isn't the most user-friendly
  • Larger choice of assets at other providers
  • Verdict3.0
  • Ready-made Portfolio2.5
  • Fees2.5
  • Trading Platform3.0
  • Research5.0
  • Safety5.0
  • Education4.5
  • Customer Service5.0
  • Portfolio View
  • Additional Services5.0

Clare's view

Who do I recommend it for?

Average Success Rate

24.2%

infoCharles Stanley 5-Year Avg
The following dataset includes the performances of ready-made portfolios/funds offered by investment platforms and may include both actively and passively managed ready-made portfolios/funds. Performance indicated is also net of all fees to 31st January 2024, unless stated otherwise; any tiered fee structure will be disclosed. Ready-made portfolios/funds that include cryptocurrencies or any other securities outside cash and equities are not included in the dataset. The dataset only includes ready-made portfolios/funds which are explicitly advertised by their respective platforms as being for ‘beginners’, and which are exclusively offered by the platform itself. Funds which are managed by other providers and may be identically offered across multiple platforms were not included in this dataset. For example, the Vanguard UK All Share Acc. ETF was offered by Plum, but as it is not directly managed by Plum and customers could reasonably access it on multiple platforms, it was not included for the purposes of this research. Other discretely advertised securities or investments are not included.

24.8%

info Industry avg.
The industry average is the median average of all fund/ready-made portfolio performance figures we collated from 23 investment providers. To see the full dataset, visit X page.
arrow-down-orangeRead More
quote

Pros

  • Fees can work out good value on large portfolios
  • No dealing fees on funds
  • Superb research content
  • In-house financial planning services
  • Capital Gains Report available on request - helpful for tax returns
  • All account holders receive £50 worth of trading credits every six months, in April and October
quote

Cons

  • Below average performance on ready-made portfolios for cautious and moderate risk rated portfolios
  • Very high dealing fees for trading stocks
  • High FX fees
  • Trading platform isn't the most user-friendly
  • Larger choice of assets at other providers
  • arrowVerdict
    3.0
  • arrowReady-made Portfolio:
    2.5
  • arrow Fees:
    2.5
  • arrowTrading Platform:
    3.0
  • arrowResearch:
    5.0
  • arrowSafety:
    5.0
  • arrowEducation:
    4.5
  • arrowCustomer Service:
    5.0
  • arrowPortfolio View
  • arrowAdditional Services
    5.0

update-icon

Updates

August 2024 Reduced platform fee: Charles Stanley have lowered their annual platform fee from 0.35% to 0.30%.

Who do I recommend Charles Stanley for?


Charles Stanley could be a good match for:

  • DIY investors with large portfolios who mostly invest in funds
  • Those looking for a prestigious name with a long-history
  • You have a large portfolio and you want a personalised wealth management service

Charles Stanley might not be a good match if you're seeking a very large choice of international assets, or you plan to trade stocks or ETFs often, as DIY dealing fees are high on these assets.

Account types and assets


Charles Stanley customers can invest via any of the following accounts:

  • Sometimes called an investment ISA, a stocks and shares ISA is an individual savings account that allows you to invest in shares, unit trusts, investment funds, and bonds. You will not need to pay tax on any income or capital gains earned on investments within an ISAStocks and shares ISAinfo
  • A self-invested personal pension (SIPP) is a type of private pension that allows you to control the specific investments that make up your pension fundSelf-invested personal pension (SIPP)info
  • General investment account (GIA) is an account designed to provide access to investments. You may be liable for tax on any income or capital gains earned within a general investment account but this can be a useful vehicle for anyone who has maxed out their ISA allowanceGeneral investment accountinfo
  • A junior self-invested personal pension (SIPP) is a way of investing money for your child’s future retirement, free from capital gains and dividend tax. As it is designed to be started before a child turns 18, it must be opened by a parent or guardian although anyone can contribute. Once the beneficiary turns 18, they take control of the account, however, the money within the account cannot usually be accessed until age 55 (rising to 57 in 2028 and likely to rise further)Junior ISAinfo
  • Savings accounts

Charles Stanley's stocks and shares ISA is a flexible ISA. With a flexible ISA, you can add and withdraw your money within the tax year, without it counting more than once towards your allowance limit.

The Charles Stanley Junior ISA (JISA) is similarly a flexible stocks and shares ISA. Cash Junior ISAs are the alternative to investment JISAs but aren't available as widely and it's not offered by Charles Stanley.

There's a really good range of savings accounts, including an easy access account, 35-day notice account, 6 months notice account, 12 months notice account, and 24 months notice account. You'll also find some highly competitive rates of interest as you can see from this comparison table:

3.0out of 5

Fees


Fees for using Charles Stanley Direct vary depending on the service you use.

  • If you manage your own online investments

Annual fee for investing in stocks, funds, ETFs, bonds and gilts, investment trusts and A commodity is any basic raw material that can be bought and sold, for example, copper, silver, oil or coffee.commoditiesinfo: 0.30% (minimum of £5 per month, maximum of £50 per month)

Online dealing fees

Stocks and shares: £10.00 per trade
Charles Stanley Multi-Asset Funds: Free
All other funds: £4.00 per trade

Telephone dealing fees

£25-£150 per trade depending on the size of the trade.

A foreign exchange (FX) fee is added to all trades involving foreign currencies. If you buy a stock that trades in US dollars, for example, and your home account is in GB pounds, you'll need to pay an FX fee.FX feesinfo

Fees of 1.00% of the value of the trade are added on when buying or selling non-UK assets, for trades of between £1-£9,999. That's relatively high, as you can see from this chart:

However, FX fees do come down the more you want to trade and if you're making trades of over £1m+, you'll be paying just 0.15%. If you are making trades worth over £1m+, however, eToro offers the best rate, with no FX fees due at all on trades worth £200,000+.

  • If you use the Personal Trading Service

If you invest over £50,000, you're entitled to use the Personal Trading Service. You'll have access to a Charles Stanley professional who can provide you with support and market insights.

Annual fees: £200 – £3,000 (fees vary according to the amount you have invested)

Dealing fees:

First £10,000 – 0.75%
Next £90,000 – 0.25%
Over £100,000 – 0.15%

Min fee per trade – £25

  • If you're invested in a SIPP

In addition to the core fees, you'll be charged an account administration charge to invest within the Charles Stanley SIPP.

Under £30,000 invested: £100 + VAT per year
Over £30,000 invested: Free
Personal Trading Service: £250 + VAT per year

There are a few other miscellaneous fees to watch out for with the Charles Stanley SIPP. Their website details them but they include a transfer out fee of £125 + VAT and various different drawdown fees of between £10 and £300 + VAT.

  • If you use the Investment Portfolio Review service

Get a better understanding of your existing investments with a personalised portfolio report and a one-hour meeting with one of the Charles Stanley professionals to discuss the report and ask questions.

Annual fee: £360

  • If you want financial coaching

First 15 minutes: Free
1 hour coaching session: £150 incl. VAT

  • Transfers

Transferring out of Charles Stanley: £10 per holding
Transferring in a share certificate: £50 per holding

Awards


FAQs

Yes, Charles Stanley is safe. It is authorised and regulated by the Financial Conduct Authority and part of the Financial Services Compensation Scheme (FSCS) meaning that you could be entitled to compensation of up to £85,000 in the unlikely event that the company went out of business.

Yes, Charles Stanley offers both a stocks and shares ISA and a Junior stocks and shares ISA.

Ask the Insiders


Have a question about Charles Stanley that we haven't covered? Ask it here and we will get back to you as soon as possible!