Fidelity and Trail Commission

loial

I currently invest directly with Fidelity FundsNetwork for my ISA. I am considering whether to invest via a broker that rebates the trail commission. But given that I invest directly, is there actually any commission to rebate?

Cautious_Investor_3

I believe there is, as you invest directly with Fidelity, they will pocket it I would assume.

Reaper

Yes, both the initial charge and the trail commission are deducted in full whether you go direct or via an IFA.

Discount brokers, or "execution only IFAs", will refund most of that to you if they have to do no work other than passing the paperwork on.

The worst thing to do is go direct. If you want to stay with Fidelity platform then look at re-registering with Cavendish Online.

premierfella

I have funds invested via Fidelity FundsNetwork via Cavendish.

This may be off-topic, but one thing to possibly bear in mind are changes in 2012/13? I am still frankly confused about how exactly any changes will affect me. I believe existing funds held will be unaffected but trail commission will no longer be paid/available on new funds purchased (but I am unclear whether this simply means that there will in effect be different fund prices on "old" and "new" to account for trail commission on the "old" funds).

Rollinghome

Reaper wrote: »

The worst thing to do is go direct.

With some exceptions perhaps. For example, if you buy CF Troy Trojan through an IFA including H-L they'll probably sell you the 'I' class units with an AMC of 1.5% that includes a 0.5% trail commission for them. Buy direct via CF and you'll get the 'O' class units that don't include trail commission and herefore have an AMC of just 1.0%.

premierfella wrote: »

This may be off-topic, but one thing to possibly bear in mind are changes in 2012/13? I am still frankly confused about how exactly any changes will affect me. I believe existing funds held will be unaffected but trail commission will no longer be paid/available on new funds purchased (but I am unclear whether this simply means that there will in effect be different fund prices on "old" and "new" to account for trail commission on the "old" funds).

Don't think anyone knows for sure how different companies will calculate their fees (although a few vested interests are already putting out scare stories) but bear in mind that there are already often several different classes of units, some paying trail-commission to advisers and some not.