According to IFP corporate member Transact, more than 5,600 Financial Planners and advisers work with it to manage over £19 billion on behalf of more than 123,000 investors.

In a statement, the firm said: “Currently, Portfolios valued less than £180,000 pay 0.5% Annual Commission on the first £60,000 of investments. With effect from 1 November 2015 we are reducing the start point of this tier to £150,000 so more people will pay less.

“This reduction will benefit many thousands of customers and makes Transact even more attractive to new clients. For example, a client with a Portfolio value of £150,000 will pay £105 less per annum – a saving of over 17%.

Transact said that by allowing clients and their family to link portfolios as a consolidated group, this may make it easier for more investors to benefit from lower overall charges.

Ian Taylor, chief executive, said: “This is the eighth reduction since 2008. We are pleased to be reducing our charges further in line with our principles of 'responsible pricing'. Funds under direction now exceed £19bn and we are again passing on savings derived from our scale and specialisation in the Wrap market.”

He claimed that the ‘competitive’ charging and service combined put his company at the top of the table in terms of value for money.