Possible Charges & Fees

Due to the administration costs involved in managing stock market-linked investments, you will usually be charged administration fees by your investment provider. There is a reasonable amount of work involved in stock market investment, certainly in comparison to that involved in a regular savings account, and there are also fees charged for trading stocks and shares. It is not, therefore, totally unreasonable that investors be asked to sacrifice a share of their investment returns in exchange for this service. These charges may be calculated based on a percentage of the capital invested, or be regular flat fees. You may also face charges if you wish to withdraw money from your investment before the investment period is over. It is important to consider the charges associated with investment carefully and shop around between providers, as charges can vary widely. Often, charges will tend to be larger for riskier investment options, since these portfolios may involve more administration and have the potential for larger returns.