Fractional bond investment platform WiseAlpha now lets customers buy Gilts with 0% service fees.
This is a reduction from the previous annual service fee of 0.2%. However, WiseAlpha does charge a 0.25% early sales fee for selling a bond prior to it reaching maturity.
WiseAlpha also offers Rolling Gilts, a tax-efficient automatic investing solution for clients seeking exposure to UK government bonds. Where funds are continuously invested in a selected short-term gilt (typically 6 to 18 months), and upon maturity, they are automatically rolled into the next scheduled gilt.
WiseAlpha has been one of the leaders in making bond investing accessible to all investors, not just professional and institutions and want to offer retail investors access to “the entire pool of Sterling corporate and government bonds”.
WiseAlpha CEO Rezaah Ahmad said: “Bonds are not just for institutional investors.
“The revolution in Bond Investing is gathering pace and I’m proud that we’re leading from the front.”
The update marks the fulfilment of the company’s long-term goal of bringing the corporate bond market to individual investors.
Through its fractional bond technology, investors can pay as little as £100 to invest in bonds in companies including UK-retailers Ocado and Marks & Spencer or international firms such as Apple.
Previously, purchasing a corporate bond would typically require putting down at least £100,000 and completing extensive paperwork.
WiseAlpha states that it has already seen more than £100 million in trading volume on its platform since its launch in 2016. It expects this figure to “rise exponentially” as it expands its business through institutional partnerships.
The platform carries a tiered structure for fees, with four tiers of fees between 1% and 0.25% a year on any money invested through its platform, depending on the amount invested through the platform.
In November, the firm surged past a crowdfunding target of £350,000 on Crowdcube as part of a wider funding round by the company.
The company offers an Innovative Finance Individual Savings Account (IFISA) and a Self-Invested Personal Pension (SIPP). It also recently launched its own Small, Self-administered Pension Scheme (SSAS) service.
The Good Money Guide spoke with Ahmad earlier this year, who shared some of his plans for WiseAlpha including eventually expanding into international markets. You can read the full interview here.
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