This article will aim to review the Ardan platform and the pro and cons to help investors decide whether they like the platform or not.
Who is Ardan?
Ardan was originally a DFM originally owned by SJP in the Isle of Man, however, it was bought out in 2016 by IFGL that also owns RL360 and FPI. As these products are usually insurance based bonds that charge higher fees IFGL thought it would change with the times and purchase a low-cost platform (Ardan), this follows the trend that the U.K had seen 15-20 years prior. Due to many finding offshore bonds too expensive.
Where is it based?
Like other bonds the platform is based in the Isle of Man, this platform like others based in the Isle of Man suggest security and stability, The reasons why they chose the Isle of Man can be found on their site. Personally, I have not had a problem with the Isle of Man, plus due to its legal structure and it is a prominent financial hub I find it a good location to hold money.
More can be found here and I have done a number of blogs about locations for platforms.
https://www.ardan-international.com/about-us/why-are-we-based-in-the-isle-of-man.htm
Investment Platform Reviews: For Expats
What funds does Ardan have?
It does have a wide range of funds on listed exchanges, it also has stocks on listed exchanges along with ETFs and notes. One important aspect is that this is not a trading platform so it is not traded live prices for the stocks.
Also, no hedge funds and crypto is presently on the platform.
Currencies in the platform
It can come in 11 currency options, they are mainly the major currencies, the trading fees on the currencies are only 0.5% and can hold multiple currencies at one time.
Portfolios
You do have options to structure and set portfolios through the platform that can opt for instant rebalancing, sector and risk rotation depending on your preferences.
Ardans Fees
Ardan has a pretty simple structure with the fees, it charges a 0.4% platform fee including its custody fee and the entry fees into the funds are negotiable depending on the advisor but they start at 0% and are capped at 5%
The advisor fee as it’s an advisor based platform range from 0-2%. For example, if you wanted to choose Ardan and I was the advisor, it would be the platform fee and advisor fee as standard and then the fund fees might be on top.
Trading fees for ETFs and funds are 5 GBP plus stockbroker fees, this of course does vary but you could be paying around 30 GBP for the high-end funds. For a note, it is 40 GBP.
On top of that, you have active fund fees.
I have heard that they are getting a platform like Interactive Brokers that will keep the cost down as they can do it in house.
Also, it has 5 GBP costs with a transfer out.
Is it safe?
We have touched on the jurisdiction of the Isle of Man. However, it is also worth noting that the company, as its site suggests, has $11.5 billion under management and 80,000 clients across the world.
It also uses a world-class custodian such as Citi Bank and Allfunds for the protection of funds.
The Platform
The platform uses morning star and shows the gains, losses and currency. In terms of platforms, it is reasonable enough with good technology from Morningstar interoperated in the system.
My Thoughts
Firstly, as a disclaimer, this is my opinion and not any kind of advice.
For me, it is a good addition to the offshore platforms and has won a number of international awards for the best platform that is flaunted on its website.
When you compare it to other low-cost platforms such as IBKR its cost can be significantly more, even more, if you are looking to frequently trade with the high trading costs. It can add up and these are better platforms for this.
As an advisor platform for expats, if you are looking to hold funds it is a good option due to the location and low cost. Yes, it’s not as cheap as Vanguard or Fidelity. But, the 0.4% flat fee is not bad also with no exit penalties.
I see it as an adequate platform for expats. I personally have an account with Ardan, to try it out and find the trading into funds the only aspect that is high for me.
Some additional information about Ardan:
https://www.ardan-international.com/downloads/ard001-ardan-brochure.pdf
