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How much to transfer between fund platforms?

Investment | ISAs Helpful? 5

Asked by Redwinebox20499, submitted 06 October 2012.

Open Quote Do platforms make entry / exit charges to change funds in ISA & SIPPS from one platform to another. If so do you have any details please?End Quote

Answered by Justin on 15 October 2012

In general, yes, you'll pay a fee one way or another. There are three main charges that typically may apply:

Setup charge: Quite rare these days, especially for ISAs, although the FundNetwork SIPP sold via discount brokers has a setup charge of around £116.

Exit charge: Fairly common, especially amongst the very cheapest SIPPs (who in fairness probably require customers to remain on board for longer to be profitable versus more expensive rivals). For example, Interactive Investor charges £360 to exit its SIPP and Alliance Trust Savings charges £150.

Transfer charge: If you want to transfer fund investments 'as is' (called an 'in-specie' transfer) rather than sell, transfer cash and repurchase on the new platform, then you'll usually have to pay a fee. For example, Hargreaves Lansdown charges £30 per fund. If the funds are sold and repurchased initial fund charges may apply, but these are rare nowadays when using low cost platforms/discount brokers.

I'm afraid it would be too time consuming to construct a full table highlighting these costs, but I've detailed many of these charges on our low cost SIPP comparison. Better still, if you want to check specific platforms just take a look at their charges schedules, which highlight the above charges if applicable.

Provided you're holding tens of thousands of pounds then transfer charges, while a pain, shouldn't be too big a deterrent to switching platforms if you feel moving is in your best interests overall.

Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if necessary, use a qualified professional adviser.

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