Fidelity charges

delmar39

Has anyone received this from Fidelity? When they say "no more than £45" how does this compare with the current 0.35%? Should I be concerned? I have some Police Mutual investments, but stopped these due to high charges and went with fidelity for low charges...welcome any feedback on this.

Service fee

This covers the costs of everything the administrator of your investments offers you. At Fidelity, the service fee is typically at 0.35% of the value of your holdings (or less if you have more invested with us). This fee reduces to 0.20% if you have £250,000 or more with Fidelity Personal Investing. In addition, we won't charge an annual service fee on any assets above the level of £1,000,000.

From December 2015, the service fee will be a flat rate charge of no more than £45 (and £25 for Junior ISA or Junior SIPP), if the value of your portfolio is less than £7,500.For full details please refer to our Doing business with Fidelity document.

DesG

It says if your portfolio is less than £7500 is when the minimum charge applies.

To answer your question, a £45 fee is dearer if you portfolio is less than ~£12800, so yes, if your portfolio is less than £7500 you will be hit by this minimum charge and it will be dearer than the current charge of 0.35%

delmar39

DesG wrote: »

It says if your portfolio is less than £7500 is when the minimum charge applies.

To answer your question, a £45 fee is dearer if you portfolio is less than ~£12800, so yes, if your portfolio is less than £7500 you will be hit by this minimum charge and it will be dearer than the current charge of 0.35%

Thanks DesG thought as much, they've sold themselves on being the cheapest around, not the case anymore (for investments less than £7,500 of course).


Cheers

TrustyOven

delmar39 wrote: »

From December 2015, the service fee will be a flat rate charge of no more than £45 (and £25 for Junior ISA or Junior SIPP), if the value of your portfolio is less than £7,500.For full details please refer to our Doing business with Fidelity document.

Thanks for drawing this to my attention.

Now I need to look for a cheaper platform

greenglide

if the value of your portfolio is less than £7,500.For full details please refer to our Doing business with Fidelity document.

But surely very, very, very few people have a portfolio of less than £7,000 with someone like Fidelity, apart from, maybe, people who have just started contributing monthly payments to a new SIPP or ISA?

TrustyOven

greenglide wrote: »

But surely very, very, very few people have a portfolio of less than £7,000

How do you know this?
What evidence did you use to arrive to this conclusion?

greenglide wrote: »

with someone like Fidelity, apart from, maybe,

Someone like Fidelity? What?

greenglide wrote: »

people who have just started contributing monthly payments to a new SIPP or ISA?

Yes, many people might have been contributing monthly payments but still under the £7500 threshold. The end result is the same - increased charges until one reaches £7500.

puk999

I'm wondering whether a change of agency from Fidelity to Cavendish Online (very simple to do) will avoid this minimum fee?

Sorry for asking a question and not being more definitive. If it was office hours I'd ring Cavendish to see what they say.

delmar39

puk999 wrote: »

I'm wondering whether a change of agency from Fidelity to Cavendish Online (very simple to do) will avoid this minimum fee?

Sorry for asking a question and not being more definitive. If it was office hours I'd ring Cavendish to see what they say.

Yes it will having researched it. In the process of switching.

From Cavendish:

"In order to have your Fidelity account linked to Cavendish Online please could you fill in the two forms that I have attached and post those back to us at FREEPOST, CAVENDISH ONLINE. That will ensure that your account is linked to Cavendish Online, that the £45 investor fee is waived for that account and that the platform fee drops to 0.25%, with 0.20% going to FundsNetwork and 0.05% to Cavendish Online."

Also, on line access to Fidelity remains as was.

puk999

delmar39 wrote: »

Yes it will having researched it. In the process of switching.

From Cavendish:

"In order to have your Fidelity account linked to Cavendish Online please could you fill in the two forms that I have attached and post those back to us at FREEPOST, CAVENDISH ONLINE. That will ensure that your account is linked to Cavendish Online, that the £45 investor fee is waived for that account and that the platform fee drops to 0.25%, with 0.20% going to FundsNetwork and 0.05% to Cavendish Online."

Also, on line access to Fidelity remains as was.

The £45 investor fee has been around for a while, is definitely avoidable via Cavendish, and is different from the £45 flat service charge coming in December 2015 when under £7.5k.

I just called Cavendish and the guy I spoke to confirmed that the flat service charge will not applicable to Cavendish clients.

My partner has a small ISA with Fidelity via Cavendish so that's a relief.

scrambledeggs

Do Cavendish have the same level of free Morningstar portfolio analysis as Fidelity?

jabbahut40

Just to check.


Does the £45 min fee apply per fidelity fund? i.e. if I have two fidelity fund in the same ISA do I get charged twice?


or....


Does the £45 min fee apply for each ISA year or the overall portfolio?