Advisors & costs

GeoH_2

Can anyone tell me how the charges are worked out for the different investments.
For example if I take out an ISA in stock & shares how much will the adviser get?
Lump sum 2/3% introductory commission of investment and then a yearly ?% cut thereafter.
So does the yearly commission cover the advisor checking how the investment is going and advise if you should change funds.
Or does this involve another charge.
Can you invest in various investments that are only annual commission on how the funds etc are performing.
This would obviously make the advisor more interest in good advice rather than the initial commission.
Any breakdown would be appreciated.

Also how do you get a good advisor??. If you go to unbiased.com I presume these are just advisors that advertise for your area and does not guarantee a good one

Ta

George

[Deleted User]

Recommended IFA fees are from £75 to £250 an hour. Yearly commision proposed by our (ex) IFA was a trail of 0.5% which did not cover any supervision. His charge was £250 per hour. His set-up fee for a sipp was 3%. Some IFAs do not charge the set-up fee

I run my own share ISA. https://www.squaregain.co.uk the only charges are stamp duty to buy and a dealing charge of £12.50 to buy or sell. You can buy various index trackers and funds through them. They have discounted initial charges on many funds

advisory stockbrokers also offer advice, at a cost, re fund and share progress. Our IFA used a broker as he wasn`t proficient in offering advice re performance decisions

dunstonh

Also how do you get a good advisor??. If you go to unbiased.com I presume these are just advisors that advertise for your area and does not guarantee a good one

Unbiased.co.uk is the database that covers 90% of IFAs. You do not need to pay to be on that database. Most do not. Some pay to "enhance" their profile.

An IFA is a term that covers anyone that is authorised by the FSA to transact financial advice offering whole of market and agrees to give the facility to pay by fee or not.

How you get a good one is no different to any other job or profession.

EdInvestor

The regulator's site gives you an idea of the effect of the charges you pay on your investment in different companies' products - pensions, ISAs, investment bonds etc.These charges include the payments to IFAs, which are only one aspect of the total.

https://www.fsa.gov.uk/tables

It is much cheaper to invest directly in shares using a no annual fee broker's account and holding your shares, rather than trading them. If you choose shares that pay good dividends, this is likely to increase your returns.