Platform Fees
Author
Discussion

bitchstewie

Original Poster:

67,749 posts

240 months

Sunday 29th April 2018
quotequote all
I'm already up to a good chunk between last year and this years ISA and at some stage fees matter so I ran a couple of fee calculators.

fk me what a difference platform fees make eek

With my old "cheap" 0.25% platform, assuming 7% annual return (I wish) over 20 years I'd be paying the fund platform a touch over £25k in platform fees alone.

That goes to around £40k with some of the more expensive platforms.

With a fixed cost platform (which I've moved to) I'd be paying around £1800.

I thought it worth a mention because I see so many threads where people focus on fund costs but not so many where people focus on platform costs.

Fully understand that YMMV and if you only purchase shares and/or investment trusts some platforms have caps etc. but my god that was an eye opener smile

colin79666

2,218 posts

143 months

Sunday 29th April 2018
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Yup always worth comparing every year or so. Good guide here: http://monevator.com/compare-uk-cheapest-online-br...
Which is best varies depending on the types of assets invested in, value of holdings and how often you trade.

sidicks

25,218 posts

251 months

Sunday 29th April 2018
quotequote all
bhstewie said:
I'm already up to a good chunk between last year and this years ISA and at some stage fees matter so I ran a couple of fee calculators.

fk me what a difference platform fees make eek

With my old "cheap" 0.25% platform, assuming 7% annual return (I wish) over 20 years I'd be paying the fund platform a touch over £25k in platform fees alone.

That goes to around £40k with some of the more expensive platforms.

With a fixed cost platform (which I've moved to) I'd be paying around £1800.

I thought it worth a mention because I see so many threads where people focus on fund costs but not so many where people focus on platform costs.

Fully understand that YMMV and if you only purchase shares and/or investment trusts some platforms have caps etc. but my god that was an eye opener smile
In your example, aren't you comparing the 'effect of charges' on one side with actual charges on the other?

bitchstewie

Original Poster:

67,749 posts

240 months

Sunday 29th April 2018
quotequote all
sidicks said:
In your example, aren't you comparing the 'effect of charges' on one side with actual charges on the other?
I guess so yes, either way it's amazing how "only" 0.25% adds up as things hopefully grow v a flat fee.

sidicks

25,218 posts

251 months

Sunday 29th April 2018
quotequote all
bhstewie said:
I guess so yes, either way it's amazing how "only" 0.25% adds up as things hopefully grow v a flat fee.
The effect of basic compound interest. It doesn't mean the the platform provider receives that large amount either!

bitchstewie

Original Poster:

67,749 posts

240 months

Sunday 29th April 2018
quotequote all
sidicks said:
The effect of basic compound interest. It doesn't mean the the platform provider receives that large amount either!
Who else then? These are platform fees not fund fees confused

sidicks

25,218 posts

251 months

Sunday 29th April 2018
quotequote all
bhstewie said:
Who else then? These are platform fees not fund fees confused
As above, you need to understand the difference between the effect fees and the actual fees taken.

bitchstewie

Original Poster:

67,749 posts

240 months

Sunday 29th April 2018
quotequote all
sidicks said:
As above, you need to understand the difference between the effect fees and the actual fees taken.
Ah yes sorry, bit slow there, cost impact on the portfolio v actual money paid smile

sidicks

25,218 posts

251 months

Sunday 29th April 2018
quotequote all
bhstewie said:
Ah yes sorry, bit slow there, cost impact on the portfolio v actual money paid smile
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