What fees do you pay on a UK investment fund platform?

Full answer

When you invest through a UK fund platform you generally pay more than one charge, and confusing them is a common mistake. The platform fee (also called a custody or service charge) is what the platform charges to hold and administer your investments. It is usually either a percentage of the value held - often tiered so the rate falls on larger pots - or a flat annual fee, which tends to suit larger portfolios better. On top of that sits the fund's ongoing charges figure (OCF), paid to the fund manager and deducted within the fund itself, so you never see it leave your account but it still reduces your return. Other charges can apply: dealing or trading fees per buy or sell (more common for shares, ETFs and investment trusts than for open-ended funds), fees for holding investments in a SIPP or for taking pension income, foreign exchange spreads on overseas holdings, and exit or transfer-out charges, although many platforms have dropped exit fees. Why it matters: fees compound against you. A worked illustration - on a GBP 50,000 pot, a 0.45 percent platform fee is GBP 225 a year and a 0.20 percent fund OCF is GBP 100 a year, a combined GBP 325 annually before any dealing costs. Over decades, even small percentage differences materially reduce the final value because each year's charge is taken from a pot that would otherwise keep growing. Who this affects: anyone using an ISA, SIPP or general investment account through a platform. The tax wrapper matters too - holding funds in an ISA (GBP 20,000 allowance for 2026/27) or pension shelters dividends and gains, but platform and fund fees still apply inside the wrapper. To see the long-term drag from fees, model your contributions with and without the charge in the compound interest calculator.

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