Fund Dealing?

sparky0138

bowlhead99 wrote: »

This is probably only going to add to the confusion because per the OP, the charge being queried was for 'fund dealing'.

Stamp duty does not apply to buying shares in 'funds' which are open ended investment companies or unit trusts; only to buying shares in individual UK companies / investment trusts bought on the stock exchange...

If stamp duty doesn't need to be paid because the shares are in funds, does that mean share dealing charges wouldn't apply either?

On the Fidelity site it says this:

Share dealing charges (including ETFs and investment trusts) — there is a charge made for each buy and sell transaction you place (including switches and dividend reinvestments). This will be deducted from the amount invested or raised through a sale.

Simple charge of £10.00 for each deal placed online*.
Phone trades are charged £30.00 for each deal*.
Regular savings or reinvestment are charged at £1.50*.

*If your SIPP has not yet been moved to our new system there is a broker trading charge of 0.10% per individual buy and sell. It's important to note that if you switch from one investment trust to another, you will pay the charge twice – once for selling, and again for buying the new one.

This applies to your SIPP if you opened it before 27 March 2019 and you have not received a letter from us saying that it’s been moved to our new system. Or, if you opened a SIPP after 27 March 2019 and you were over 54 years of age at that time.

The latter option would apply so does that mean that broker trading charges need to be paid, or not in the case of a fund?

AnotherJoe

sparky0138 wrote: »

If stamp duty doesn't need to be paid because the shares are in funds, does that mean share dealing charges wouldn't apply either?

On the Fidelity site it says this:

Share dealing charges (including ETFs and investment trusts) — there is a charge made for each buy and sell transaction you place (including switches and dividend reinvestments). This will be deducted from the amount invested or raised through a sale.

Simple charge of £10.00 for each deal placed online*.
Phone trades are charged £30.00 for each deal*.
Regular savings or reinvestment are charged at £1.50*.

*If your SIPP has not yet been moved to our new system there is a broker trading charge of 0.10% per individual buy and sell. It's important to note that if you switch from one investment trust to another, you will pay the charge twice – once for selling, and again for buying the new one.

This applies to your SIPP if you opened it before 27 March 2019 and you have not received a letter from us saying that it’s been moved to our new system. Or, if you opened a SIPP after 27 March 2019 and you were over 54 years of age at that time.

The latter option would apply so does that mean that broker trading charges need to be paid, or not in the case of a fund?

A fund is not shares.
Shares include shares, ITs,& ETFs.
Funds are generally called funds or OEICs.
If you page down on that page you have copied the text from you'll see there is no transaction charge for funds.
There are though different holding fees for funds and shares with different charging limits.

What is it you are looking to be investing in?
Funds/OEICs, shares, ITs, ETFs?
Don't be confused by the fact that a fund/OEIC might contain shares, that's irrelevant to you from the point of charges, you dont get charged twice because there is shares within the fund for example. Or there might be funds within a fund. Doesn't matter, its only what you buy directly that matters.

sparky0138

AnotherJoe wrote: »

A fund is not shares.
Shares include shares, ITs,& ETFs.
Funds are generally called funds or OEICs.
If you page down on that page you have copied the text from you'll see there is no transaction charge for funds.
There are though different holding fees for funds and shares with different charging limits.

What is it you are looking to be investing in?
Funds/OEICs, shares, ITs, ETFs?
Don't be confused by the fact that a fund/OEIC might contain shares, that's irrelevant to you from the point of charges, you dont get charged twice because there is shares within the fund for example. Or there might be funds within a fund. Doesn't matter, its only what you buy directly that matters.

Thanks, AnotherJoe, that makes it a lot clearer. It would be the Vanguard Lifestrategy 40% or 60% fund.