Know your Investment Platform

Catherine Alexander
Partner & Mortgage and Protection Adviser at GDA

One of the reasons it is good to have access to a financial adviser is to help select the best investment platform for your money. Your adviser will look at what you are hoping to achieve and ensure that the platform from which you invest meets your needs, and more importantly, that there are no hidden costs that come into play once you are committed.

Unfortunately, many investors ignore critical investment costs because they can be confusing or obscured by fine print and jargon. There are many types of fees involved in the investment process including: annual fees, ongoing fees, transaction fees, account maintenance fees, and advisory fees. However, there are two fees that are often glossed over when it comes to investors considering a platform:

Fund switch fees
Some platforms will charge a fee for every switch you want to do, therefore, if you are planning to make changes to your portfolio regularly this type of platform may not be right for you.

Fund transfer fees
If you decide that you want to transfer your holdings to another provider there is often a transfer fee. However, some platforms will charge a fee based on how many funds you hold which can be costly.

Having a financial adviser to help you choose a platform is invaluable for your financial planning and getting the most from your investments. Be careful not to be swayed by a glossy advert or claims regarding how many other people think the platform is wonderful. Make sure it is right for you before you commit yourself.

This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice.