How to understand investment platform costs


What are the costs associated with using a platform?

The charges levied by different platforms can vary greatly, and our calculator helps unravel these costs. Typically, a platform will charge you an annual fee, and dealing fees if you choose to buy and sell stocks and shares. Occasionally, some charge a set-up fee.  And most will have exit fees if you want to cash in or move your investments elsewhere. These fees could be a flat £ fee, or a percentage of your investment value, the former being preferable if you have a large amount to invest.

For more information on platform costs, take a look at our guide ‘PLATFORM FEES EXPLAINED’.

Will I be charged if I take money out of a platform?

Some platforms will charge you a fee if you want to move your investments elsewhere. Not all will charge you for cashing in your investments. If you have a pension drawdown, whilst you will pay an annual fee, you will not always be charged to withdraw.

Do the platform costs include fund management charges?

No they don’t, as these will be dependent on the specific funds you choose to invest in. On average, equity funds will charge an annual fee of 0.75%, whilst a passive fund has an average fee of 0.15%.

Do the adviser platform costs include adviser fees?

No, adviser fees are not included. Only the cost of using the adviser platform. How fees are paid can be discussed with your adviser, whether it is an up-front cost, or for example paid out of your investments.