In June 2026, Barclays removed the annual custody fee for its investment platform — now called Direct Investing, formerly Smart Investor. The charge was 0.25% per year on balances up to £200,000, and 0.05% above that. It is now zero.
For fund investors in particular, this is a significant change. Barclays now offers access to over 2,000 funds, 4,000 shares, and 1,200 ETFs with no annual holding cost and no dealing fee on funds — a combination that was previously unavailable at any mainstream UK platform.
What the old fee structure looked like
Before June 2026, Barclays Smart Investor charged:
- 0.25% per year on balances up to £200,000
- 0.05% per year on balances above £200,000
- £6 per trade for shares, ETFs, bonds, and investment trusts
- Free for fund (unit trust / OEIC) purchases and sales
That 0.25% added up quickly. A £50,000 portfolio cost £125/year to hold. A £100,000 portfolio cost £250/year. Large portfolios approaching £200,000 were paying up to £500/year simply to keep their investments on the platform.
What the new fee structure looks like
From June 2026:
- Platform fee: £0
- Fund dealing: £0
- ETF, share, bond, and investment trust dealing: £6 per trade
- Ongoing fund charges still apply (set by the fund manager, not Barclays)
The dealing fee for ETFs and shares is unchanged. The only thing that changed is the annual custody charge, which is now gone.
How much you save
| Portfolio size | Old annual fee | New annual fee | Annual saving |
|---|---|---|---|
| £10,000 | £25 | £0 | £25 |
| £20,000 | £50 | £0 | £50 |
| £50,000 | £125 | £0 | £125 |
| £100,000 | £250 | £0 | £250 |
| £200,000 | £500 | £0 | £500 |
| £300,000 | £550 | £0 | £550 |
Figures are for the platform custody fee only, not dealing charges.
Over ten years at £100,000 invested, that’s £2,500 in fees not paid — before compounding. If that £250/year had stayed invested and grown at 6% annually, the actual cost in lost growth is higher still.
The rebrand: Smart Investor becomes Direct Investing
Barclays rebranded the platform from Smart Investor to Direct Investing in May 2026, shortly before the fee change. The investments, FSCS protection, and app are unchanged — it’s the same platform with a new name. If you had a Smart Investor account, you now have a Direct Investing account automatically.
Who benefits most
Fund investors get the biggest upgrade. Barclays now lets you hold any of its 2,000+ funds at zero annual cost with zero dealing fees. Previously, the only zero-cost fund platforms were limited in fund range. That trade-off no longer exists at Barclays.
Existing Barclays customers may find this changes their calculation. If you already bank with Barclays and held off investing because of the 0.25% fee, that barrier is gone.
Large portfolio holders see the biggest absolute saving. A £200,000 portfolio was paying £500/year. That is now £0.
Who it suits less
Frequent ETF and share traders still pay £6 per trade. If you buy ETFs monthly, that’s £72/year in dealing costs — higher than InvestEngine (£0) or Trading 212 (£0). For regular ETF investing, the free platforms remain cheaper on a total-cost basis.
Vanguard fund investors using Vanguard’s own platform pay 0.15% per year (min £4/month). At portfolios below £32,000 the minimum charge applies anyway. Above that, Barclays is cheaper than Vanguard’s platform for fund holding costs (though Vanguard’s own funds have low ongoing charges of 0.06–0.22% regardless of platform).
How Barclays compares to the competition now
For annual platform cost on a fund ISA (no dealing charges included):
| Platform | Annual platform fee |
|---|---|
| Barclays | £0 |
| Freetrade | £0 (funds supported on Basic plan) |
| Vanguard | 0.15% (min £48/year) |
| Fidelity | 0.35% |
| AJ Bell | 0.25% |
| Hargreaves Lansdown | 0.35% |
| Interactive Investor | £71.88/year flat |
Barclays is unique in combining a zero platform fee with a full investment range. The other zero-fee platforms (InvestEngine, Trading 212) don’t offer funds — only ETFs and shares.
The catch, as always, is dealing costs. If you trade ETFs frequently, run the numbers with our fee calculator to compare total costs at your trading frequency.
Should you switch?
If you currently pay a percentage fee on a fund portfolio, Barclays is worth comparing seriously. The maths is simple: if you hold funds and pay more than £0/year in platform fees, switching to Barclays saves you money on the platform cost. You’d then only pay dealing charges if you trade ETFs or shares.
Practical considerations before switching:
- Transfer costs: check whether your current platform charges exit fees. HL charges £25 per holding for in-specie transfers.
- Transfer time: ISA transfers typically take 4–6 weeks in-specie.
- Range: Barclays offers 2,000+ funds, 4,000+ shares, 1,200+ ETFs. Verify your specific holdings are available before initiating a transfer.
- Flexible ISA: Barclays does not offer a flexible ISA, so withdrawals cannot be replaced in the same tax year.
Use our compare tool to see a direct fee comparison between Barclays and your current platform at your exact portfolio size.