UK Investment for Beginners: How Can I Keep My Fees Low?

It's easy to pay away your precious investment returns in fees. Fees compound over time just like interest. So what fees do you pay as an investor and how can you keep them as low as possible? We look at platform fees, entry & exit fees, trading fees, transaction fees and whether percentage or flat fees are best.

This is what else PensionCraft Offers:

Recommended PensionCraft YouTube Playlists

#PensionCraft #LowFeeInvesting #FinancialLiteracy

[xredo]

The more you know, the less you pay ! Thank you very much Ramin

[korkmazbaran]

Can we add these videos in the UK schooling curriculum as the title 'Life Finance'?

Or better yet, can PensionCraft give workshops to schools?

[tahir]

A real eye-opener about the compounding effect of fees, thank you. Just to point out that the otherwise very expensive platform Hargreaves Lansdown is not too bad if you only hold ETFs, investment trusts and company shares (and make lump sum investments and are essentially a buy and hold investor so that you minimise dealing fees) - platform fee capped at £45 p.a. Exit fees are a problem (across most of the industry). Hopefully the regulator will stamp on that at some point soon...

[saurabhchavda]

Very useful eye opening video. Thank you very much for sharing such a good details

[tellyrotsyourbrain]

How do you find out what the transaction fees are on an ETF? For example, the KIDD for Vanguard ETFs says "Portfolio transaction costs will have an impact on performance" and "The ongoing charges figure ... may vary from year to year. It excludes portfolio transaction costs." It quotes the ongoing charges, but doesn't tell you what the transaction costs are.

[adiazim]

HiExcellent site!I'm paying Fidelity .35 %  or 765 annually for my ISA account.Could I ask would I be better to transfer to iWeb?

[exsiophysiotherapy]

Thanks for the advice Ramin. would you need to pay for advice if you merely want to use the account for gaining compound interest and nothing else? Especially since the lifestrategy fund is already managed for us.

[pistonslapuk]

Good morning Ramin, is there any platform for investing in individual stocks within an isa? I’m struggling to find anything. Thank you, Leon.

[tc]

Hi Ramin,


Serious question (yield taken from effective YTM in the fund's portfolio data)


VGOV yields 1.4% with 12.6 duration
VUKIGB (£ corp bonds) yields 2.6% with 7.6y duration
VGB (global bonds) yields 1.8% with 6.8y duration
VGCB (global corp bonds) yields 3% with 6.4y duration
VUSGB (VUTY but hedged) yields 2.6% with 5.9y duration
VUSIGC (VUCP but hedged) yields 3.7% with 6.4y duration


To me, this is a genuinely good reason to hold US bonds instead of £ bonds, or at least add a significant weighting of US bonds to my 25% bond allocation. I'm looking for a reason not to do this and the only one I can think of is that gilts appear to more directly and more strongly swing against UK equity downturns than other bonds.

[rustys]

Here in late 2024.

Just as valid five years later.

[gordongrowth]

@2:53 - Are you just using a basic FV formula (FV=PV(1+r)^n) to calculate the total gain and amount lost in fees?

[FlorinVZaharia]

Hi Ramin and all. I currently hold a Vanguard ISA and invested in SP500. I would like to start pucking individual shares but Vanguard does not offer this service. Are there any (well established and secure) platforms out there that offer share purchasing u der ISA tax wrapper or does the UK Gov only allow fund investment under ISA?