Good/Bad to use Broker with fidelity ?

freestyle_3

I am using a broker to arrange my maxi (funds) ISA for saving towards a house.

Looking at the website, I have found these details

Funds on which discounts are available

Product groups
Standard charges
Discount level
Expiry date

AberdeenAll fundsTransfers4.25%1.25%OngoingAegonAmericaAll New Money5.5%2%OngoingEuropean BondAll New Money5.5%2%OngoingEuropean EquityAll New Money5.5%2%Ongoing

Does this mean that I get charged 5.5 percent and the broker takes 2%. Am I better off doing something else ?

http://www.fidelity.co.uk/adviser/fnw/about/discounts.html

carnet

Personally I would never use an IFA (other than an execution only discount broker just to buy through ).

If you don't feel confident arranging your own investments, ask your IFA what the Initial Charges will be - then ask for a discount.

If he/she won't give you one, there are plenty of IFA's who will.

These days the typical discounted fund IC is in the region of 0.5% via an execution only discount broker.

dunstonh

Assuming broker rates are the same as IFAs, you are looking at 3% commission normally with fidelity. Assuming that the broker hasnt rebated any of the commission. You should have been issued with a 16 page key features document and illustration (combined) which shows how much commission has been taken and what the charges are.

Rebates work on the basis that 1% rebate = 1% reduction in initial charge. So even with a full rebate, you would still be looking at an initial charge with some funds.

cheerfulcat

freestyle wrote:

Does this mean that I get charged 5.5 percent and the broker takes 2%. Am I better off doing something else ?

Hi, freestyle,

No, it means that the normal initial charge is 5.5% but fidelity is offering to reduce that by 2 percentage points so you pay 3.5%. As to doing something else, Hargreaves Lansdown offer a far better discount...

freestyle_3

Thanks,

I found hargreaves Lansdown from another post.

Are you able to suggest how much I might save using hargreaves ? Or are there to many variables ??

I will be putting £300/month into the investment ISA

cheerfulcat

You'll normally save all of the initial charge and a fair bit of the annual charge. You can check here.

lestamunda

I use hargreaves lansdown for my maxi isa - i use their mulit manager income and growth / special situation funds (50% each).

there is no initial and 1% amc - of which they give you a part kick back.

i find this company to be one of the cheapest, if not THE cheapest with a good service and great reviews/fund info sent in the post on a regular basis.

carnet

jaghir wrote:

I use hargreaves lansdown for my maxi isa - i use their mulit manager income and growth / special situation funds (50% each).

there is no initial and 1% amc - of which they give you a part kick back.

Although, as MM funds, there are also the management charges - albeit quite heavily discounted - on the actual funds held to be taken into account.

Fond as I am of HL for dealing thru, IMHO there are better MM funds available.