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Close Brothers investment platform review

We analyse the charges levied by Close Brothers and ask whether the investment platform provides good value for investors

In this article
What is Close Brothers? Is Close Brothers good or bad? What do customers say about Close Brothers? How much does Close Brothers charge? Who is Close Brothers good for?
Who is Close Brothers expensive for? What accounts and services does Close Brothers offer? Is your money safe with Close Brothers? Get top money-saving tips from Which?

What is Close Brothers?

As well as providing advisory and discretionary services for its mainly high-net-worth client base, Close Brothers also runs a DIY investment platform. Initially launched for existing clients, it is now available to all investors. 

Is Close Brothers good or bad?

To get an idea of how good or bad Close Brothers is, we asked its customers. 

Which?'s rating for customer satisfaction is based on feedback from real customers. We ask investors to rate their current platform for the quality of its online tools, customer service and investment information. We also ask if the available investments meet their needs, is value for money and whether they'd recommend it to someone else.

However, to be named a Which? Recommended Provider (WRP), customer satisfaction alone won't suffice; we also consider platform fees. 

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What do customers say about Close Brothers?

  • 'A easy simple company to deal with, no advertising overload. They just do the jobs I tell them to do.'
  • 'Close Brothers manage my financial affairs with minimum effort on my part. They meet every six months or so to check we are happy and produce a detailed annual report, most of which I understand. My financial advisers seem very happy with them.'

How much does Close Brothers charge?

Ongoing charges

  • 0.25% for pots up to £500,000
  • 0.20% for pots up to £1m
  • 0.1% for pots up to £1.5m
  • No charge for pots over £1.5m

Close Brothers says dealing fees will not exceed £8.95. There's also no charge for setting up your account, buying, selling or switching funds, and no annual fee for your Isa, Sipp or investment account. 

We’ve estimated the cost of investing various sums with Close Brothers over the course of a year in the table below. The costs assume you only buy funds (shares work out slightly cheaper with some companies), and make four purchases and four sales each year.

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Source: Analysis by Which? Money correct as of April 2020

Who is Close Brothers good for?

Close Brothers will suit people who have smaller pots (less than £50,000). It's one of the cheapest platforms for small and medium-sized portfolios. 

However, there are more highly-rated platforms with similar costs, including Which? Recommended Provider Vanguard.

Who is Close Brothers expensive for?

Close Brothers' charges go up a fair bit for larger portfolios, partly because the cost of investing is based on a percentage of your portfolio.

To save money, place your larger portfolio with a fixed-fee platform, such as Interactive Investor, Halifax Share Dealing or The Share Centre.

    What accounts and services does Close Brothers offer?

    The information below gives an at-glance view of the key things that the accounts and services Close Brothers offers.

    Elements marked with a are offered by Close Brothers and those marked with a are not

     

     Advisory services

     

    Advisory services allow you to access professional investment advice. 

     

     General investment account 

     

    A general investment account that can hold different types of investments but doesn’t give tax-free benefits like pensions and Isas.

     

     Income drawdown

     

    Income drawdown allows you to take money out of your pension to live on in retirement.

     

      Junior Isa

     

    A junior Isa is a tax-free savings account for under 18s.

     

     Lifetime Isa

     

    A lifetime Isa is a tax-free savings or investment account designed to help people aged 18-39 buy their first home or save for retirement. 

     

     Sipps

     

    A Sipp is a pension where you have complete control over the investments you put your savings into.

     

     Savings account

     

    A savings account is somewhere you can put your money so it can grow in value. 

     

    ✓ Stocks and shares Isa

     

    A stocks and shares Isa is a tax-free account that allows you to put your money in a range of investments.

     

     Annuity

     

    An annuity is an insurance product which allows you to swap your pension savings for a guaranteed regular income that will last for the rest of your life. 

     

     Banking Services

     

    Banking services allow you to operate bank accounts, make transfers and make payments.

    Is your money safe with Close Brothers?

    If Close Brothers went out of business, you would be compensated by the Financial Services Compensation Scheme (FSCS).

    The FSCS will cover up to £85,000 of investments per person, per platform. You can claim for free online: there’s no reason to use a claims management company.

    You won’t be compensated for investments falling in value, or a company in which you hold shares goes bust, unless this poor performance resulted from bad advice given by a regulated Independent Financial Advisor that has since gone bust. 

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