Changes to Fidelity fees Jan/Feb 2023

adindas

Stargunner said:

Alistair31 said:

Albermarle said:

Alistair31 said:

Very disappointing. 100% increase in fee and no individual notification? 

Where do I move my SIPP now then to save? (100% invested in one ETF, no further contributions)

I think you have to just accept that the £45 was always a mystery why it was so low, especially for a SIPP and no extra charges for drawdown.
I think A J Bell charge £120 for the same and HL £200. 

I guess when you look at market movements, you can gain or lose £45 in a second.

Fair enough for new customers IMO, but bad crack moving the goalposts on existing customers.

All companies are in their rights to change prices. Have your energy prices and your monthly food shop remained the same for the last 12 months. £90 per year is still extremely competitive with no drawdown fees.

"Most noticeable to people on this board are probably the reduction in online share dealing fee from 16th Jan 2023 to £7.50 (was £10), and the doubling of the service fee cap for exchange traded instruments to £90 (was £45) from 1st Feb 2023. Foreign exchange charges are also reducing slightly."

With this fee "extremely competitive ????????????" Well, it will depend on where you sit.

It might be competitive for some people who just do drawdown and do not trigger a dealing fee, FX fees.

They might get partial subsidy from those  who need to do share dealing or DCA regular investment as well a trading

Add that with

- Service fee. 0.35%

- Foreign exchange (FX) charges 1% for each transaction in foreign currency

InvesterJones

adindas said:

Stargunner said:

Alistair31 said:

Albermarle said:

Alistair31 said:

Very disappointing. 100% increase in fee and no individual notification? 

Where do I move my SIPP now then to save? (100% invested in one ETF, no further contributions)

I think you have to just accept that the £45 was always a mystery why it was so low, especially for a SIPP and no extra charges for drawdown.
I think A J Bell charge £120 for the same and HL £200. 

I guess when you look at market movements, you can gain or lose £45 in a second.

Fair enough for new customers IMO, but bad crack moving the goalposts on existing customers.

All companies are in their rights to change prices. Have your energy prices and your monthly food shop remained the same for the last 12 months. £90 per year is still extremely competitive with no drawdown fees.

"Most noticeable to people on this board are probably the reduction in online share dealing fee from 16th Jan 2023 to £7.50 (was £10), and the doubling of the service fee cap for exchange traded instruments to £90 (was £45) from 1st Feb 2023. Foreign exchange charges are also reducing slightly."

With this fee "extremely competitive ????????????" Well, it will depend on where you sit.

It might be competitive for some people who just do drawdown and do not trigger a dealing fee, FX fees.

They might get partial subsidy from those  who need to do share dealing or DCA regular investment as well a trading

Add that with

- Service fee. 0.35%

- Foreign exchange (FX) charges 1% for each transaction in foreign currency

My coffee hasn't kicked in yet so apologies if I've misunderstood you. The service fee is capped, so it's kind of irrelevant once you have more than (now) £25,714 in exchanged traded instruments (i.e. ETFs or shares). FX charges are pretty common, but at least they're reducing on Fidelity - maximum of 0.75%, down to 0.5% for £10k+ or 0.25 from £25k+.

For SIPPs it is still indeed competitive as per Albermarle's post - if you have any knowledge of a cheaper SIPP for these kind of investments please share!

Outside of SIPPs, less so, due to competition from fee-free platforms.

Amoux

While it's a shame, the Fidelity capped charges were incredibly competitive for SIPPs. 

Bear in mind the cap works for more than 1 account so you can effectively have both a SIPP and a S&S ISA for a maximum of £90 a year (plus any trading costs). With no drawdown costs, this still seems very good to me. 

dunstonh

Alistair31 said:

Albermarle said:

Alistair31 said:

Very disappointing. 100% increase in fee and no individual notification? 

Where do I move my SIPP now then to save? (100% invested in one ETF, no further contributions)

I think you have to just accept that the £45 was always a mystery why it was so low, especially for a SIPP and no extra charges for drawdown.
I think A J Bell charge £120 for the same and HL £200. 

I guess when you look at market movements, you can gain or lose £45 in a second.

Fair enough for new customers IMO, but bad crack moving the goalposts on existing customers.

The problem with pricing models that charge differently for different assets is that one model is basically cross subsidising the other.    So, if the volume of people using the subsidised model increases and the ones paying the subsidy declines, then inevitably, the pricing model needs to change.

What if you were already in drawdown and they changed those terms too, would you still feel the same?

You just move it to another provider, if there is one that you think is better.    In the majority of cases, you are not tied to your platform.   I say majority as I have just had a section 32 buy out bond bulk transferred to Fidelity and that has greater than 25% TFC.  It cannot be moved away without losing that transitional relief. 

noclaf

Amoux said:

While it's a shame, the Fidelity capped charges were incredibly competitive for SIPPs. 

Bear in mind the cap works for more than 1 account so you can effectively have both a SIPP and a S&S ISA for a maximum of £90 a year (plus any trading costs). With no drawdown costs, this still seems very good to me. 

I have my SIPP and sons JISA with Fidelity, S&S ISA with Vanguard.....if I moved the S&SISA to Vanguard then would I be paying £90 service fee across all accounts if using ETFs? Thats quite competitive to be fair though still a shame about the fee hike.

Would have carefully consider the potential risks having all my investment accounts with a single platform and solely using ETF's....maybe paying a bit more in fees isn't such a bad idea to have risk spread across platforms.

Albermarle

Alistair31 said:

Write to them and politely (or otherwise) register your dissatisfaction and/or intention to vote with your feet. 

I certainly have. 

If you vote with your feet, then it will almost certainly cost you money.

It is a bit like leaving Wetherspoons because they have increased the price of a pint by 20p, and going to another pub where the beer is £2 a pint more expensive.

adindas

InvesterJones said:

adindas said:

Stargunner said:

Alistair31 said:

Albermarle said:

Alistair31 said:

Very disappointing. 100% increase in fee and no individual notification? 

Where do I move my SIPP now then to save? (100% invested in one ETF, no further contributions)

I think you have to just accept that the £45 was always a mystery why it was so low, especially for a SIPP and no extra charges for drawdown.
I think A J Bell charge £120 for the same and HL £200. 

I guess when you look at market movements, you can gain or lose £45 in a second.

Fair enough for new customers IMO, but bad crack moving the goalposts on existing customers.

All companies are in their rights to change prices. Have your energy prices and your monthly food shop remained the same for the last 12 months. £90 per year is still extremely competitive with no drawdown fees.

"Most noticeable to people on this board are probably the reduction in online share dealing fee from 16th Jan 2023 to £7.50 (was £10), and the doubling of the service fee cap for exchange traded instruments to £90 (was £45) from 1st Feb 2023. Foreign exchange charges are also reducing slightly."

With this fee "extremely competitive ????????????" Well, it will depend on where you sit.

It might be competitive for some people who just do drawdown and do not trigger a dealing fee, FX fees.

They might get partial subsidy from those  who need to do share dealing or DCA regular investment as well a trading

Add that with

- Service fee. 0.35%

- Foreign exchange (FX) charges 1% for each transaction in foreign currency

My coffee hasn't kicked in yet so apologies if I've misunderstood you. The service fee is capped, so it's kind of irrelevant once you have more than (now) £25,714 in exchanged traded instruments (i.e. ETFs or shares). FX charges are pretty common, but at least they're reducing on Fidelity - maximum of 0.75%, down to 0.5% for £10k+ or 0.25 from £25k+.

For SIPPs it is still indeed competitive as per Albermarle's post - if you have any knowledge of a cheaper SIPP for these kind of investments please share!

Outside of SIPPs, less so, due to competition from fee-free platforms.

As I said previously, it will depend on where you sit.
Share dealing currently £10 per share dealing, 200 share dealing a year, it will already cost a person 200X£10 = £2,000 extremely competitive, cheap ???
Add that 

- Service fee. 0.35%

- Foreign exchange (FX) charges 1% for each transaction in foreign currency

For a person who just need a drawdown, no active investing than no fee for drawdown platform is a no brainer.
If you have not needed drawdown, but instead you actively invest, e.g sell/buy, doing DCAs and you want to do it under SIPP than have a look at Freetrade SIPP ?? Drawdown is a also in their pipeline. Trading212 will launch its SIIP platform but no definitve date yet.

InvesterJones

adindas said:

InvesterJones said:

adindas said:

Stargunner said:

Alistair31 said:

Albermarle said:

Alistair31 said:

Very disappointing. 100% increase in fee and no individual notification? 

Where do I move my SIPP now then to save? (100% invested in one ETF, no further contributions)

I think you have to just accept that the £45 was always a mystery why it was so low, especially for a SIPP and no extra charges for drawdown.
I think A J Bell charge £120 for the same and HL £200. 

I guess when you look at market movements, you can gain or lose £45 in a second.

Fair enough for new customers IMO, but bad crack moving the goalposts on existing customers.

All companies are in their rights to change prices. Have your energy prices and your monthly food shop remained the same for the last 12 months. £90 per year is still extremely competitive with no drawdown fees.

"Most noticeable to people on this board are probably the reduction in online share dealing fee from 16th Jan 2023 to £7.50 (was £10), and the doubling of the service fee cap for exchange traded instruments to £90 (was £45) from 1st Feb 2023. Foreign exchange charges are also reducing slightly."

With this fee "extremely competitive ????????????" Well, it will depend on where you sit.

It might be competitive for some people who just do drawdown and do not trigger a dealing fee, FX fees.

They might get partial subsidy from those  who need to do share dealing or DCA regular investment as well a trading

Add that with

- Service fee. 0.35%

- Foreign exchange (FX) charges 1% for each transaction in foreign currency

My coffee hasn't kicked in yet so apologies if I've misunderstood you. The service fee is capped, so it's kind of irrelevant once you have more than (now) £25,714 in exchanged traded instruments (i.e. ETFs or shares). FX charges are pretty common, but at least they're reducing on Fidelity - maximum of 0.75%, down to 0.5% for £10k+ or 0.25 from £25k+.

For SIPPs it is still indeed competitive as per Albermarle's post - if you have any knowledge of a cheaper SIPP for these kind of investments please share!

Outside of SIPPs, less so, due to competition from fee-free platforms.

As I said previously, it will depend on where you sit.
Share dealing currently £10 per share dealing, 200 share dealing a year, it will already cost a person 200X£10 = £2,000 extremely competitive, cheap ???

You want to adjust your pension portfolio four times a week?! Some people would say even four times a year is on the high side.

adindas

InvesterJones said:

adindas said:

InvesterJones said:

adindas said:

Stargunner said:

Alistair31 said:

Albermarle said:

Alistair31 said:

Very disappointing. 100% increase in fee and no individual notification? 

Where do I move my SIPP now then to save? (100% invested in one ETF, no further contributions)

I think you have to just accept that the £45 was always a mystery why it was so low, especially for a SIPP and no extra charges for drawdown.
I think A J Bell charge £120 for the same and HL £200. 

I guess when you look at market movements, you can gain or lose £45 in a second.

Fair enough for new customers IMO, but bad crack moving the goalposts on existing customers.

All companies are in their rights to change prices. Have your energy prices and your monthly food shop remained the same for the last 12 months. £90 per year is still extremely competitive with no drawdown fees.

"Most noticeable to people on this board are probably the reduction in online share dealing fee from 16th Jan 2023 to £7.50 (was £10), and the doubling of the service fee cap for exchange traded instruments to £90 (was £45) from 1st Feb 2023. Foreign exchange charges are also reducing slightly."

With this fee "extremely competitive ????????????" Well, it will depend on where you sit.

It might be competitive for some people who just do drawdown and do not trigger a dealing fee, FX fees.

They might get partial subsidy from those  who need to do share dealing or DCA regular investment as well a trading

Add that with

- Service fee. 0.35%

- Foreign exchange (FX) charges 1% for each transaction in foreign currency

My coffee hasn't kicked in yet so apologies if I've misunderstood you. The service fee is capped, so it's kind of irrelevant once you have more than (now) £25,714 in exchanged traded instruments (i.e. ETFs or shares). FX charges are pretty common, but at least they're reducing on Fidelity - maximum of 0.75%, down to 0.5% for £10k+ or 0.25 from £25k+.

For SIPPs it is still indeed competitive as per Albermarle's post - if you have any knowledge of a cheaper SIPP for these kind of investments please share!

Outside of SIPPs, less so, due to competition from fee-free platforms.

As I said previously, it will depend on where you sit.
Share dealing currently £10 per share dealing, 200 share dealing a year, it will already cost a person 200X£10 = £2,000 extremely competitive, cheap ???

You want to adjust your pension portfolio four times a week?! Some people would say even four times a year is on the high side.

Because in your mind you might be thinking people doing SIIP are just pensioners, doing drawdown, doing rebalancing portfolio with the aim of preserving wealth rather than generating wealth!!

For some people, balance portfolio, investing in multi assets fund to include bonds are just a nonsense strategy if the aim is to generate wealth, rather than to preserve wealth.

Some people are doing swing trading. They will be doing it anyway under GIA. Why would it be different if they are doing it under SIIP and they get top up, they get another tax relief.

masonic

gee9fam said:

I took advantage of the Fidelity incentive to transfer some ISA/SIPP funds a little while back. I remember there was a minimum timescale to leave the funds with them or they would claim the incentive back should you wish to transfer out. I've checked my paperwork and their website but can't seem to find the timescale. I think it was 12 or 18 months. Can anyone advise or point me in the right direction?

They have run multiple incentives, but IIRC the last one was a 12 month tie-in, but definitely worth asking them if you are considering leaving as they always remove promotional offer terms from their website after the incentive period. Their offering still seems very competitive for large accounts, I was previously with AJ Bell before moving to Fidelity and Fidelity is still cheaper after the custody fee increase. The only downside is not being able to use regular investing separately from regular contributions, which has always meant they are best for a LTBH portfolio.

I can live with ~£102 per year including dividend reinvestment fees. I don't think I'd be able to find anything cheaper than that.

Edit: clearly I can't rely on memory ... From the FAQ section of the website, could be in relation to a previous offer, so still worth double checking with them: