Fund platform charges

BananaRepublic

I use AJ Bell to manage SIPP and ISA funds. I’ve just noticed that for some funds Hargreaves Lansdown offer rebates on the yearly management fees e.g .15%. The web sites I know that compare platforms don’t mention this. Is this unique to HL? Looks like I might have to reassess the cost to use AJ Bell, HL etc. And yes I do know HL charges are high. 

masonic

HL has negotiated access to unit classes with discounted AMC. Some are exclusive to HL, others are available at selected other providers.

Albermarle

Fidelity also have discounts on some funds , although in some cases it is pretty small. 

dunstonh

Most platforms have superclean share classes.  HL has about the 3rd or 4th largest range.   However, you should never purchase on the basis of a discount.  0.15% is the equivalent of 30 seconds on the markets.

eskbanker

BananaRepublic said:
The web sites I know that compare platforms don’t mention this.

They're just comparing standard published tariffs for those platforms (or at least those that I've seen do) per type of investment - it would be massively more complex to have to extend that to incorporate comparative platform pricing by individual investment!

preston03

I'm not sure of other platforms - but as far as I'm concerned HL are very transparent about their charges

0.45% upto 250k

From 250k to 1m ... 0.25%

from 1m to 2m its 0.10%

Free after that

Then the fund charges are on top - and easily visible and transparent - and yes - you can get discounts

Are there any cheaper platforms ?

masonic

preston03 said:

Are there any cheaper platforms ?

Yes, there are several cheaper platforms. Which one is cheapest depends on how much you have invested, in which types of assets, and how often you buy and sell. Hence a comparison site is the best way to get a guide to the cheapest options for your usage - but then there are nuances like discounts on specific funds to factor in.

JohnWinder

dunstonh said:

Most platforms have superclean share classes.  HL has about the 3rd or 4th largest range.   However, you should never purchase on the basis of a discount.  0.15% is the equivalent of 30 seconds on the markets.

Agree, I wouldn't purchase SOLELY on the basis of a discount. But because of the effect of compounding, an extra 0.15% can be expected to reduce the value of your investments by over 4% after 30 years. We can't control what the markets will do, but have some control over our costs. https://www.thecalculatorsite.com/finance/calculators/compoundinterestcalculator.php