Changes to Fidelity fees Jan/Feb 2023

InvesterJones

adindas said:

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.

OK yes, this being the savings and investment board I thought we were talking about savings and investments, not trading. I agree the fidelity platform isn't the best suited for short term trading. I don't think they intend it to be either.

EthicsGradient

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 ???
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.

For someone using Fidelity like your example, this is excellent news. A reduction from £10 to £7.50 per trade, for 200 deals per year, saves them £500, far outweighing the increase in the cap from £45 to £90.

Why they would already have chosen Fidelity, with its relatively high old charge per trade, when they're a frequent trader, is another matter, that we cannot fathom.

adindas

EthicsGradient 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 ???
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.

For someone using Fidelity like your example, this is excellent news. A reduction from £10 to £7.50 per trade, for 200 deals per year, saves them £500, far outweighing the increase in the cap from £45 to £90.

Why they would already have chosen Fidelity, with its relatively high old charge per trade, when they're a frequent trader, is another matter, that we cannot fathom.

I said "currently" that is what is shown on their website.

The fact it reduces from £10 to  £7.50 it does not make them extremely competitive, cheap like it is claimed in this thread. In fact £7.50 is far from competitive for people who do their desk work to do comparison, for people who have not needed a drawdown.

EthicsGradient

So your "point" is that someone who had already chosen a product very unsuitable for their (fairly rare) needs will find this not quite as bad for them as it was before. Well done. 

Albermarle

adindas said:

EthicsGradient 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 ???
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.

For someone using Fidelity like your example, this is excellent news. A reduction from £10 to £7.50 per trade, for 200 deals per year, saves them £500, far outweighing the increase in the cap from £45 to £90.

Why they would already have chosen Fidelity, with its relatively high old charge per trade, when they're a frequent trader, is another matter, that we cannot fathom.

I said "currently" that is what is shown on their website.

The fact it reduces from £10 to  £7.50 it does not make them extremely competitive, cheap like it is claimed in this thread. In fact £7.50 is far from competitive for people who do their desk work to do comparison, for people who have not needed a drawdown.

By far the majority of posters on this forum (regular and new) are buy and hold type investors, with minimal regular buying and selling, whether in drawdown or not. So it makes sense that the comments about Fidelity revolve around this type of investor, as that would be the typical reader.

Albermarle

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.

Even better if you transferred in during an incentive period.
Although I pay more than that, as I hold some funds with them as well, so overall I pay about 0.1%. However due to two transfer cashbacks, I have not in reality actually paid anything for over two years.

adindas

EthicsGradient said:

So your "point" is that someone who had already chosen a product very unsuitable for their (fairly rare) needs will find this not quite as bad for them as it was before. Well done. 

I am not saying that I simply rebuff the comment which is stating Fidelity is "extremely competitive" just by reducing the share dealing fee from £10 to £7.50. People will need to access the suitability of the product with their needs. People who are just doing drawdown, no need for share dealing no drawdown fee platform for SIIP is a no brainer. It is good to see when other people are partially subsidising you, isn't it ??

But those who want to do many share dealing or trading within SIIP fidelity is far from competitive. Also keep in mind the people interest in investing platform are not just the existing customers or people who simply want to do a drawdown. There are newcomers out there might want to start SIIP with different nature

InvesterJones said:

OK yes, this being the savings and investment board I thought we were talking about savings and investments, not trading. I agree the fidelity platform isn't the best suited for short term trading. I don't think they intend it to be either.

Albermarle said:

By far the majority of posters on this forum (regular and new) are buy and hold type investors, with minimal regular buying and selling, whether in drawdown or not. So it makes sense that the comments about Fidelity revolve around this type of investor, as that would be the typical reader.

DCA is a well known recognisable strategy in investing (not just trading) especially in the bear market. Also someone might need to do weekly DCA due to getting paid weekly, count that how much it translates into fee. Let alone if the amount to be DCAed is tiny, say £50-£100 a week count that how it translates into percentage to overall investment return.

noclaf

Albermarle said:

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.

Even better if you transferred in during an incentive period.
Although I pay more than that, as I hold some funds with them as well, so overall I pay about 0.1%. However due to two transfer cashbacks, I have not in reality actually paid anything for over two years.

I can't complain either tbf as transferred to Fidelity due to an employer discount (0.3% rather than 0.35% platform fee though I use ETF's so not that beneficial) however more welcoming was the £100 bonus/cashback I received as part of an offer at the time.... though being a rather fickle investor I was a tad upset about missing out on £300 as my pension funds value had dipped just before the transfer to Fidelity....first world problems I know......

talexuser

adindas said:

 It is good to see when other people are partially subsidising you, isn't it ??

Pretty well applies to any platform you care to name, and... slap forehead!  you can then shop around to find the best value for your usage!

masonic

Albermarle said:

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.

Even better if you transferred in during an incentive period.
Although I pay more than that, as I hold some funds with them as well, so overall I pay about 0.1%. However due to two transfer cashbacks, I have not in reality actually paid anything for over two years.

I did transfer during an incentive period (in fact I think it was a post from you that alerted me to the incentive, so thanks for that!)

adindas said:

DCA is a well known recognisable strategy in investing (not just trading) especially in the bear market. Also someone might need to do weekly DCA due to getting paid weekly, count that how much it translates into fee. Let alone if the amount to be DCAed is tiny, say £50-£100 a week count that how it translates into percentage to overall investment return.

Well they do have a £1.50 regular investment option, but those dribbling in small amounts have other platforms far more suited to that sort of activity. Some people have a large account with one provider, and a small one with another, and then transfer from small to large periodically. If you have £50-£100 a week, then a 7% regular saver is an option, then make a once a year contribution of the resultant lump sum. The best option of all for an employed individual may be to contribute the £50-£100 to their workplace pension where there may be additional reliefs and employer matching available, and most workplace schemes do not have any trading charges.

It's worth remembering that no offering is so perfect that there is no downside for some group of potential customers. That doesn't invalidate it as a good option for those it does work for.