Fidelity SIPP 'Service Fee'

vienly

Hello, could someone clarify whether the Fidelity SIPP service charge applies if I only hold an ETF within the SIPP?

For example, if I had £100,000 invested in VWRP (ETF), I understood that I would pay just £7.50 per month (capped at £90 per year). Would this be the only fee, or would I also need to pay their “Service Charge” of 0.35%? If the service charge does apply, I assume that would be £350 per year, which added to the £90 platform fee would total £440 annually.

The same question would go to AJ Bell too with their 'Account charge' of 0.25%

Thank you.

kinger101

I have ETF in my Fidelity SIPP and my charges are capped at 7.50 pcm.  I'm confused a little by their site but the 0.35 pc seems to be related to regular savings.

vienly

Thanks, saw this and it didn't quite make sense as it's under SIPP

https://www.fidelity.co.uk/services/sipp/

"Our service fee"

Albermarle

The 0.35% fee applies to all investments, but for ETFs; ITs and shares it is capped at £90 per year.

There is no cap for investments in OEIC funds. However buying and selling of these is free, whilst the others have a £7.50 trading fee for each buy and sell.

vienly

Thanks, in that case I will transfer my Standard Life pension over to Fidelity SIPP and save about £600 a year.
Standard life is currently charging me about £700 a year on a £300k pension (that's with the employer discount already).

Moving it to Fidelity SIPP seems like a no brainier

Cus

Double check that with them, their site says that you don't pay a service fee for holding ETF's in an 'investment account', which appears as a separate type of account to a sipp or ISA so the worry would be that the 0.35% is charged for ETF's in a sipp, but not in a regular investment account.  Especially as the sipp fees section has no carve out of fees for ETF's written anywhere..

vienly

Good call, I will contact them prior to opening an account and will query.

gm0

I have a SIPP in drawdown.  Fidelity.  I pay 0.07% service fees for the mix of ETF and funds I use. (Not all the things I want are in ETF format).  

Important - the fairly regular Fidelity cashback incentive to transfer in is worth it.  I got nearly 3 years of fees - platform, trade etc. out of it.  Missing it - is not sensible.  Autumn/Spring i think is typical.

vienly

Thanks, part of my company is being bought out meaning I will have to TUPE across sometime early next year. My old pension provider will be Standard life and I will most likely being transferring it over to Fidelity because of it's cheap £90 ETF SIPP fee (saving £600 a year for now until it grows further).

I am most likely going to miss out on the cashback incentive as I would be entitled up to £1000 which is quite a lot! Hopefully they will roll this cashback over to next year.

Cus

gm0 said:

I have a SIPP in drawdown.  Fidelity.  I pay 0.07% service fees for the mix of ETF and funds I use. (Not all the things I want are in ETF format).  

Important - the fairly regular Fidelity cashback incentive to transfer in is worth it.  I got nearly 3 years of fees - platform, trade etc. out of it.  Missing it - is not sensible.  Autumn/Spring i think is typical.

I'm thinking of moving all of my sipps into my fidelity sipp as it's a protected pension age of 55, so this thread is of interest to me. After looking at the detailed fee document, etf( and IT) investments(edit: in a sipp, but in a non sipp/ISA account are zero for some reason) are capped at £90 a year, where as other investments like funds appear to have a 0.35% service fee up to a certain size of portfolio and a few other carve outs.

So £100k in a sipp of funds you pay £350 a year, but all in ETF's it's £90.  Wonder why?

vienly

I calculated with my £300k pension in Standard Life, moving it into Fidelity SIPP only buying a global ETF (£90 fee a year), no monthly pension contributions but with a 5% annual growth (after inflation) for the next 15 years, I would be saving at least £15k in today's money in fees alone. What a huge difference!