We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Fund purchase question
Lumphammer1
Posts: 48 Forumite
If I buy a fund from a broker who charges 0.5% commission for a purchase, does the broker get the 0.5% plus his share of the 5% (yes, I know) initial charge?
0
Comments
-
Depends on the terms they have negotiated with the fund house.
A 5% initial charge does not pay the broker 5%. Probably more like 3%. So, unless they have negotiated it to allow them to offer clean pricing (which many have), you will still see some initial charge.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Lumphammer1 wrote: »If I buy a fund from a broker who charges 0.5% commission for a purchase, does the broker get the 0.5% plus his share of the 5% (yes, I know) initial charge?
If you know which fund you want the cheapest way to do it is to buy from an "execution only" broker, who will then rebate part of his fat commission to you, usually by adding extra units to your fund.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards