High or low Fidelity? - RDR charges announced

Lokolo

Rollinghome wrote: »

On Fidelity, £250,001 means you get the lower 0.2% on the whole £200,001. On HL you get 0.25% on the £1 but still pay 0.45% on the £250K. Which is presumably why HL have been busy putting more barbed wire round the windows and need bigger exit penalties to prevent clients getting out.

CityWire wrote:

The platform’s tiered charging structure is:

£0 to £250,000: 0.35%
£250,000 to £1 million: 0.2% (on all investments in all accounts, not just investments over £250,000)
More than £1 million: no charge

Fidelity wrote:

Your service fee is based on your assets with us. When you reach £250,000 the lower rate applies to all the funds that are part of our new pricing structure.

I would be surprised if it wasn't tiered. But Fidelity's website seems to say it isn't, although CityWire's article says it is.

cloud_dog wrote: »

I know this may sound a simple question but...... when is the below applied?

Share dealing charges

Monthly admin charge £5.10 per month

(link - https://www.fidelity.co.uk/investor/funds/fund-charges/no-hidden-charges.page)

9th of February the new pricing structure comes in.

Lokolo

In addition

This doesn’t just apply to funds over the £250,000 level, it is applied to everything under the new structure, so the savings could be significant. In addition, the service fee will only be charged on investments held up to £1,000,000. After this level no service fee will be charged.

So no tiered means between £114,300-£200,000 you are paying more than someone with £200,001.

SnowMan

Interesting one is that Fidelity look like best low value funds only SIPP up to about 41K (and there is the bonus of no exit fees if you move away).

SnowMan

cloud_dog wrote: »

I know this may sound a simple question but...... when is the below applied?

Share dealing charges

Monthly admin charge £5.10 per month

(link - https://www.fidelity.co.uk/investor/funds/fund-charges/no-hidden-charges.page)

That is their existing charging structure for shares via Fidelity ShareNetwork, so it is already in place.

I'm not sure if there are 2 charges for ISAs and dealing accounts if sharedealing is going on in both. I used to think there was but I am not so sure now.

You didn't used to be able to buy shares in their main SIPP (just in their SIPP for Fidelity Wealth customers). Not sure if that has changed.

Imnoexpert_2

I haven't studied the fidelity details too much but it looks very straightforward. As a big player and a well established platform they must now be a serious contender for my 'wedge'.

Almost the most pleasing aspect of all this is the deliberate sideswipes at HL - 'some companies claim to have low rates but............'

It feels as if Fidelity have waited for HL and been very quick on their feet to undercut them and pick up business HL don't seem to value -those with 250k plus, those of us that don't like add on charges, and people suspicious of high exit charges in a market where costs might just be about fall.

It's good to see this industry which has been like an old boys club behaving more like a market driven one which will compete on price and service.

jimjames

Lokolo wrote: »

In addition



So no tiered means between £114,300-£200,000 you are paying more than someone with £200,001.

Probably a good way of them trying to get clients to increase the amount they put on their platform rather than splitting across platforms.

The comparison with HL is stark - 0.2% for up to £1m with Fidelity or 0.45% then 0.25% with HL.

A customer with £2m would pay £4000 with HL or £2000 with Fidelity.

Curious that HL promote the Fidelity pricing on their own website :rotfl:
Guess they don't check the automated feeds!

http://www.hl.co.uk/shares/stock-market-news/company--news/archive/fidelity-worldwide-to-lower-fees-in-bid-to-undercut-rivals

jamesd

Interesting that Trustnet Direct will have a lower cap on its 0.25% charge at £200 a year - so £80k invested - than this but adds fund dealing charges that start at £10.

Nice to see that Fidelity are a clean platform without lots of added charges compared to HL and many others.

Imnoexpert_2

My calculations are getting more complicated!

I now have an informed choice to make and can choose a platform from a variety of competitors all tailoring their service to attract a particular market sector. Maybe I always could but wasn't quite as aware as I am now. It's refreshing but challenging.

I see fidelity say they are going to produce a platform comparison tool to help. I am currently using yours snowman -I hope you will update it and make it available as I have found it really helpful. Thanks.

cepheus

Snowman's link is here

https://drive.google.com/file/d/0BxA6Przq6KI1cWxZUTdIUWR0YVU/edit?usp=sharing

You might have to download it, it's not a google spreadsheet.
Then enable editing

I think these are just platform charges though. Since the Compareplatforms costs http://www.comparefundplatforms.com/ suggests that the different providers have significantly different costs between funds, these differences determine the overall cost as much as the platform charges.

Imnoexpert_2

Thanks Cefeus. I had already downloaded Snowman's sheet and used it.

My hope was that as it was so useful snowman would be updating it with Fidelity and other changes as they are announced.

You are right to say that you need to know the fund classes/costs of each platform to calculate costs exactly and these aren't fully known yet. At present I'm still just trying to get my head round the different platform costs. I'm hoping by the time I get so obsessed with all this that I examine each fund OFC someone will have come up with an online comparison tool.