Child investment app GoHenry has taken the unusual move of rounding its prices up, perhaps signalling a move away from platforms competing on small cost differences.
The pricing for the app’s custom card as well as its subscription fee for one child has been rounded up to $5 from $4.99, as of 31 October.
The Subscription fee for two to four children has been rounded up from $9.98 to $10, as of the same date.
GoHenry is owned by US investment group Acorns and targets users between the ages of 6 to 18 and offers features for parents such as allowance manager, as well as educational tutorials about finance for children.
The platform has a junior stocks and shares ISA that lets parents invest on behalf of their children in Vanguard’s LifeStrategy 60% index fund. The money is held in a tax-efficient account and can only be accessed by the child when they turn 18.
The Good Money Guide review of the app in September last year found it to be: “A great way to combine educating your children about the future value of money alongside giving them financial independence with their pocket money app.”
Pricing wars
The decision by GoHenry to hike fees – even if just by a cent – comes as investment platforms have been engaged in a pricing war.
In early October Wealthify cut its charge on any amount above £100,000 in its Personal Pension accounts to 0.3% from the previous level of 0.6%.
In August broker eToro removed a $5.00 withdrawal fee that it previously charged when clients moved money out of their US dollar accounts into their GBP accounts or vice versa.
And at the start of 2024 Saxo Markets slashed the commission it charged clients when they trade US and UK stocks, in addition to reducing its minimum ticket amounts.
For US equity trades a new commission rate for Classic Account holders was set at 0.08%, with minimum ticket charges cut to $1.00 from the prior level of $5.00.
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
