Alaric wrote:Cookie wrote:I am encountering TRANSACTION FEES from some brokers in the quote of the cost, which is not included with other brokers - is this a charge for a fund/ETF specific to that platform?
Brokers will vary in their treatment of funds. ETFs would usually have the same commissions as shares, that would be in the £ 5 to £ 20 range on both purchase and sale and higher for telephone dealing. OIECs may be treated the same by the Broker (interactive investor for example) but many will still follow the old method whereby there was no Broker fee on purchase, but there would be a periodic levy as a percentage of value whilst the funds were held. This used to be paid by the Fund management group back to the Broker using a higher management charge. That was outlawed so it's now collected directly. It would usually be termed a platform fee.
If you named the Brokers, those who use them could comment on their charging methods.
Yes I realize there is a broker dealing charge and also a fund/ETF running cost
But there appears to be a TRANSACTION CHARGE as well as a FX charge
I had to go through them all again, so its taken me a while
1) Transaction Costs/fees
- Shown on Youinvest and H&L.
- H&L define these as "The explicit cost the manager incurs whilst dealing......".
- Adds 0.1-0.2% to effectively the OCF - not too much of a problem, but should be in OCF
- Examples:
HSBC AMERICAN INDEX CLASS C - ACCUMULATION
(
http://www.hl.co.uk/funds/fund-discount ... tion/costs)
FIDELITY INDEX US CLASS P - ACCUMULATION
(
http://www.hl.co.uk/funds/fund-discount ... tion/costs)
SWDA (
http://www.hl.co.uk/shares/shares-searc ... -acc/costs)
2) FX charge
- Shown on Youinvest when go to deal and review charges
- 1% - enough to consider holding funds instead
- Examples:
CSP1, VUSA, HMWO
But not on IUSA, SWDA