The move affects Barclays Direct Investing customers, who previously paid 0.25% on balances up to £200,000, with a reduced rate of 0.05% above that threshold.
Barclays said its research indicates low fees and charges are the most important factor when choosing an investment service.
Removing the fee means a customer with a £50,000 portfolio will save £125 per year.
Additionally, someone with £10,000 in shares who makes six trades annually will pay £36 under the new model, compared to £61 previously.
This change delivers a saving of £25.
Sasha Wiggins, chief executive of Barclays Private Bank and Wealth Management, said: “Removing the customer fee will help to make it more straightforward for people to take the next step and invest with confidence.”
Barclays said it is committed to closing the UK’s “investment gap.”
Banking industry making effort to encourage investment culture
Industry-wide efforts have been gathering pace to encourage a stronger investment culture in the UK, amid concerns that many people are keeping substantial sums in cash that could grow more effectively if invested.
Figures from the Financial Conduct Authority (FCA) indicate that around seven million adults hold more than £10,000 in cash savings and could potentially be missing out on the benefits of investing.
Barclays does not charge a fee for buying or selling funds on its platform, though fund manager charges still apply.
A £6 fee remains for buying or selling other investments, and foreign exchange charges may apply when trading international shares.
The bank confirmed that no exit fees apply if customers choose to leave the platform.
Customers advised the value of investments can be volatile
Although investing offers the potential for higher returns, customers are reminded that the value of investments can fall as well as rise.
Sufficient time in the market is often advised to smooth out short-term volatility.
Recent regulatory changes introduced on April 6 now allow some firms to offer “targeted support” to help individuals make better-informed investment decisions.
This aims to bridge the gap between general guidance and personalised financial advice.
Barclays’ decision has already drawn wider industry attention.
Holly Mackay, chief executive and founder of finance website Boring Money, said: “This is a very big move which will shake up the direct investing market.
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“Barclays is drawing a bold line in the sand which will take the fight to challenger fintechs.
“It will also result in some soul searching amongst more established large rivals who have been delivered a pricing headache which I think they will have to respond to.
“This move suggests that 2026 is going to shape up to be a very competitive year for the hearts, minds and investment wallets of middle England.”
Are you pleased to see monthly customer fees being scrapped for Barclays Direct Investing? Let us know in the comments.
