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Fund platform charges

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BananaRepublic
BananaRepublic Posts: 2,103 Forumite
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edited 2 January 2021 at 4:13PM in Savings & investments
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. 

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  • masonic
    masonic Posts: 23,649 Forumite
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    HL has negotiated access to unit classes with discounted AMC. Some are exclusive to HL, others are available at selected other providers.
  • Albermarle
    Albermarle Posts: 22,813 Forumite
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    Fidelity also have discounts on some funds , although in some cases it is pretty small. 
  • dunstonh
    dunstonh Posts: 116,814 Forumite
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    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.



    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • eskbanker
    eskbanker Posts: 31,837 Forumite
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    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
    preston03 Posts: 18 Forumite
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    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 ?



    Hoping to retire soon
  • masonic
    masonic Posts: 23,649 Forumite
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    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
    JohnWinder Posts: 1,830 Forumite
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    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

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