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Monthly charges v annual charges

Matioli Woods have a deposit charge and then monthly charge for investing with them.  Is this usual practice? I thought most investment companies made an annual charge. 

Comments

  • Albermarle
    Albermarle Posts: 31,210 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    I had to look these up.
    A wealth management company, so probably lots of charges.

    Anyway to answer your question.
    Normally investment platforms take a monthly fee, but no deposit fee.
    Investments funds ( OEICS) I think take a daily fee, but it comes out of the fund so you do not see it directly.
  • jimjames
    jimjames Posts: 19,264 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Matioli Woods have a deposit charge and then monthly charge for investing with them.  Is this usual practice? I thought most investment companies made an annual charge. 
    Vanguard make a quarterly charge
    Remember the saying: if it looks too good to be true it almost certainly is.
  • masonic
    masonic Posts: 29,619 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Monthly tends to be more common, as a lump sum covering a year is both tough for a client to swallow and unable to account for changes in the portfolio over the year that might affect the fee. I hold four investment accounts with different providers that charge a custody fee and all are charged monthly.
  • Thank you for the comments.  I think the decision is about whether to invest with a wealth management company or not. 
  • dunstonh
    dunstonh Posts: 121,282 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Thank you for the comments.  I think the decision is about whether to invest with a wealth management company or not. 
    The decision should be to either use an IFA or DIY.    Not going to FAs or salesforces.  

    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.
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