Questions on fund charges - Fidelity ISA

jimjames

talexuser wrote: »

I sympathise with your situation but I think the changes will mean generally that small investors (and people in trackers) will pay more, middle size investors will pay much the same, and large investors may pay less... That seems to be the price for transparency!

I'm not sure small investors will pay more. If anything I think the HL changes are positive for a small investor starting out.

Previously they would have been charged £24 per year for each fund that attracted a platform charge with HL. So starting out at £50pm each into 5 different trackers would have cost £120 pa.

At 0.45% instead that will cost them £13.50 after the first year so if anything the HL pricing will be more attractive for the person starting out which is a good thing to encourage new investors to start.

westy22

Deneb wrote: »

Are you saying that this is all now changing again, or is this completely separate to the Fundsnetwork charges? :huh:

The new pricing being announced next Wednesday is for what Fidelity call their D2C (direct to customer) platform. If you are investing through Cavendish then you will be using the Adviser Platform (FundsNetwork) which, as you say, has already implemented charging changes prior to Christmas.

Rollinghome

jimjames wrote: »

I'm not sure small investors will pay more. If anything I think the HL changes are positive for a small investor starting out.

Previously they would have been charged £24 per year for each fund that attracted a platform charge with HL. So starting out at £50pm each into 5 different trackers would have cost £120 pa.

At 0.45% instead that will cost them £13.50 after the first year so if anything the HL pricing will be more attractive for the person starting out which is a good thing to encourage new investors to start.

Except that they could pay just 0.25% elsewhere, such as by using Cavendish/Fidelity.

They would also need to take into account that having opened an account with HL there will be a £30 backend charge to close each account, both for ISA and non-ISA accounts if they have them, then £30 for each fund they transfer out and £25 for transferring cash.

For new investors with only a small sum invested, HL will be very expensive to escape.

I also wonder if anyone who used them to buy the Royal Mail IPO will regret it if they have to pay HL's very high dealing fees plus an additional £30 just to close the account. Once they have assets of less than £50 in an account HL will close it and take their fees.

Cavendish/Fidelity have no account closure or transfer charges and Fidelity have previously said they oppose them.