Another draw-down question

Albermarle

Thrugelmir said:

Alexland said:

squirrelpie said:

Just to note that those H-L fees only apply to 'funds'. If you restrict yourself to shares and ETFs then the maximum charge for everything no matter how much you have invested is £200 per year. Between investment trusts and ETFs there are very few other investments I would want to make.

Or even better Fidelity who cap on ETFs/ITs at £45 pa with no charges for drawdown

Fidelity SIPP carrries a % charge depending on the amount invested with them. They couldn't operate at £45 per annum. 

It has been discussed before on this forum , how they can operate at such a low fee level . Especially as it also possible to transfer a £150K pension to Fidelity and get £500 cashback ( regular offer that I have taken advantage of twice ) .
So you could transfer £150K and then invest it all in say  ETF's /Investment trusts/shares and the platform cost is capped at £45 pa + a few £10 trades + a few £1.50 dividend reinvestments  . No extra charges for anything like drawdown, withdrawals etc .
In this case effectively no platform fees for 5 years , due to the cashback .
So why do they do it ? It is not clear, but you have to assume it is some sort of loss leader, chasing market share issue and probably only a very small % of their customer base are able/willing/know enough to take full advantage of it. 
Or like in my case , I do hold a few OEIC funds as well so I do pay some platform charge on top of the £45 , but not a lot.

Thrugelmir

Reading the Fidelity website SIPP now only refers to a capped £45 on ETF's . Diffferent to the fees levied on an ISA . 

garmeg

Thrugelmir said:

Reading the Fidelity website SIPP now only refers to a capped £45 on ETF's . Diffferent to the fees levied on an ISA . 

"The portion of the fee you pay on exchange-traded investments (shares, exchange-traded funds (ETFs), etc.) within an ISA or SIPP is capped at £45."