What is Fund Platform Fee?

Full Definition

A fund platform fee is the charge an online investment provider makes for holding, administering and giving you access to your investments, such as funds, shares, an ISA or a pension. It is typically expressed as an annual percentage of the value of your holdings, sometimes capped above a certain balance, while a few platforms charge flat monthly fees instead. This platform fee is separate from, and additional to, the ongoing charges figure (OCF) levied by the fund manager and any dealing or transfer costs. Although a fraction of a percent sounds trivial, platform fees compound over decades and can noticeably erode returns, so comparing them matters, especially for larger portfolios where flat fees often beat percentage charges. Fees are deducted automatically, usually from cash held on the platform or by selling units. Always check the full cost stack -- platform fee plus fund charges plus trading costs -- rather than any single figure in isolation.

Related Calculators

See Also