Investment fees focus: why they matter

Investment fees rarely get people excited. Markets rising? Interesting. Markets falling? Definitely interesting. But fees? Easy to ignore. And yet, they quietly shape outcomes year after year.

Then, every so often, they’re in the headlines for one reason or another. And when that happens, it’s a timely reminder to look at what you’re paying.

• Want to move to us? Get £300 to £3000 in our latest cashback offer. T&Cs apply.

Why fees matter

Over time, even small differences in the fees you pay can have a meaningful impact on the value of your investments. A fraction of a percent might not look like much on paper but, years down the line, it can shape what you ultimately end up with.

What are the types of investment fees?

When people talk about investment fees, they’re often referring to two main types of fees and charges.

Underlying fund fees - these are the fees you pay the fund manager of any fund you invest in.

Platform fees - these are the fees you pay the company that you invest with - like Fidelity - for administering and servicing your account.

Understanding the difference is important. One relates to where you invest. The other relates to what you invest in. They’re charged in different ways, and there are different ways within your gift to keep them under control.

Underlying fund costs

Every fund has its own ongoing charge, often referred to as the ongoing charges figure (OCF). This is set by the fund manager and reflects the cost of running the fund. Charges can vary significantly and are separate from any platform fees.

Some index funds, which simply track a market such as the FTSE 100 or S&P 500, may charge as little as 0.05% a year, or £5 for every £10,000 invested

Actively managed funds are run by a team that is essentially attempting to outperform the market. They typically charge more for this service - mostly likely 0.75% to 1.25% a year - as it reflects the research, analysis and portfolio management involved in picking the underlying investments.

What you can control: Even within the same sector, costs can differ widely between funds with similar objectives. For investors who are mindful of charges, it can be worth comparing like-for-like options. Passive funds may offer lower-cost exposure to broad markets. Global tracker funds often come with competitive charges. Exchange-traded funds (ETFs) can also be cost-efficient, depending on the strategy. Tools such as our investment finder can help filter options by charges and make comparisons easier.

• What are the best low-cost index funds to save for retirement?
• Which global index fund is best for you?
• Index fund ideas from our Select 50

Platform costs

Platforms structure their fees in different ways. Some charge a percentage-based annual service fee, others apply a flat monthly subscription. Dealing charges may apply when you buy or sell certain investments. Some platforms also charge for trading funds, while others do not. In some cases, service fees are capped for particular types of investments, such as shares, ETFs or investment trusts.

How Fidelity structures its fees

We split our fees (platform costs) into two parts - service fees and dealing fees.

Our service fees

This covers all the administration and servicing of your account. There are different rates depending on how much, and how regularly, you invest with us. As your investments grow, the percentage you pay falls - and eventually flattens completely.

A couple of additional fee notes:

• Junior Accounts - We do not charge service fees on Junior ISAs and Junior SIPPs (but normal fund charges apply).
• Shares - service fee applied to any exchange-traded investments, including shares, in an ISA or SIPP - 0.35% (reduced to 0.20% if you invest £250,000 or more) and capped at £7.50 per month. We do not apply a service fee to any exchange-traded investments held in an Investment Account.
• Cash - We also don’t charge a service fee on any cash held in your account (Cash available to invest).

Dealing fees

You only pay these if you’re buying and selling shares, exchange-traded funds (ETFs) or investment trusts (in other words, anything that’s traded on the stock market during market hours, with prices that change throughout the day). We don’t charge dealing fees on funds.

Our fee ‘sweet spots’

As I mentioned earlier, every provider structures their fees differently. Here are what I consider areas that give particular value for money.

Exclusive perks if you invest over £250k

If you invest over £250k with Fidelity, you automatically qualify for our Wealth Management services. This means you’re eligible for our lowest service fee at 0.2% and you also get access to an exclusive range of exclusive benefits - including your own relationship manager, regular portfolio reports and events with leading industry experts. These benefits - including the 0.2% fee - extend to your family circle (anyone in the same household as you).

• Learn more about our Wealth Management service

The £90 service fee cap on exchange-traded investments

If you hold shares, ETFs or investment trusts in an ISA or SIPP, the service fee applied to those investments is capped at £7.50 per month (£90 a year). This cap relates to the service fee — not to dealing charges.

No service fees for children

We don’t charge service fees on Junior ISAs or Junior SIPPs. So every pound you invest for your child stays invested. There’s no annual platform charge nibbling away at it year after year (normal fund charges apply).

• Learn more about our Junior ISA
• Learn more about our Junior SIPP

Total investment value, not per account

Fidelity calculates the service fee based on the total value of all your investments across accounts, not on a per-account basis.

No exit fees

Staying should be your choice - not the result of a penalty. So, we don’t charge exit fees if you decide to move elsewhere.

Looking to move your accounts to us? Get £300 to £3,000 cashback

Transfer or deposit at least £50,000 into a Fidelity SIPP or Stocks and Shares ISA - or a combination of both - and we'll give you cashback to help you reach your financial goals faster.

The cashback value is based on the total amount added across your accounts. Exclusions and T&Cs apply. The offer ends on 5 April 2026.

• Transfer a pension
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• Want to move to us? Get £300 to £3000 in our latest cashback offer. T&Cs apply.

Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. This information is not a personal recommendation for any particular investment. Eligibility to invest in an ISA and tax treatment depends on personal circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). It’s important to understand that pension transfers are a complex area and may not be suitable for everyone. Before going ahead with a pension transfer, we strongly recommend that you undertake a full comparison of the benefits, charges and features offered. To find out what else you should consider before transferring, please read our transfer factsheet. If you are in any doubt whether or not a pension transfer is suitable for your circumstances we strongly recommend that you seek advice from one of Fidelity’s advisers or an authorised financial adviser of your choice. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.