Are you one of the many wasting £140 a year on Broker fees?
This article is for information only and no recommendation is being made or should be construed from the contents of the article. Always seek independent financial advice prior to taking any action.
According to research undertaken by Broker Compare, investors waste on average £140 a year on broker fees, sometimes purely down to the fact that they do not understand how they are being charged for their investments.
Each IFA’s or broker’s charging model is different – it can be made up from a combination of factors such as value of the assets, the number of trades undertaken and the type of investments plus also paying to meet an advisor, which can add to the confusion. Sometimes the cheapest broker for one investor could prove to be the most expensive for another.
Is there a way of reducing these fees? The simple answer is yes. With Prosperity IFAs new online advisor service there are no broker management fees as you take charge of your own investment portfolio.
This means, based on the research above, you could make an extra £5,200 on top of your investments returns over a 20 year period. (Based on an ave. £140 extra invested each year, at growth rate of 6 per cent).
Prosperity IFA’s Personal Finance Portal (PFP) makes online investing easy with straightforward, affordable advice. You will still receive tailored recommendations based on what your objectives and appetite for risk are but you are in control.
This online service is ideal if you have between £1,000 and £50,000 available to invest over a period of between 3 and 30 years, and you’re looking for effective, low-cost investment management*. It is the perfect tool for making the most of your 2016 ISA allowance, if you haven’t already invested the full £15,240. ISA’s are a good investments as they are a very tax efficient way of saving, plus following the changes in April 2015, the investments can be in all cash.
The PFP app will allow you to view all your finances in one place 24/7 on any mobile or web device – and at the click of a button you can review all your fund information, an up-to-date valuation of your portfolio and assess how you’re progressing against your goals.
If you would like more information on this new service, have a look on our website, or you can call us on 01892 300303 to speak to one of our professional advisors to see how the Personal Finance Portfolio could help you and your investments.
* PFP is not suitable if you have significant liabilities or debts (not including your mortgage), particularly if your liabilities are greater than your total assets. This is a restricted advice service which is limited to investment in funds from a single provider within ISAs and GIAs, so it isn’t suitable if you want to apply for a regulated pension product. Further information can be found in our Terms of Service.