InvestEngine charges an annual flat management fee of 0.45% on your investments. And that is it. We like to keep things simple and transparent.
There are no stamp duty fees, initial setup fees, transaction fees, trading fees or any other administration charges to worry about. Our fee covers everything you need and we even regularly rebalance your portfolio for no additional cost.
It is also worth noting that when you invest, all financial products come with a fee regardless of the product or provider that you use. To implement our investment strategies we use low-cost ETFs that attract a small average annual fund cost of 0.17%. All ETFs have this fee, which is built into their performance, and is known as the expense ratio. Alternative financial products can have fees as high as 1% or more.
The InvestEngine management fee is quoted annually, to make them easier to understand, but it is collected from your account on a monthly basis. To calculate your monthly fee, simply divide 0.45% by 12, i.e. your monthly fee is 0.45%/12 = 0.0375%.
Your fee is calculated daily and is based on the daily value of each portfolio. All of these "daily" fees are added up at the end of the month and deducted in the following month.
Yes, VAT is included in our competitive annual flat management fee of 0.45%.
InvestEngine's management fees are calculated daily and deducted from your account on a monthly basis, usually a few days after the end of the month. You will be able to see the fee being deducted as a transaction in your dashboard.
ETF fees are taken at source by the ETF companies (such as Vanguard and iShares) who manage the ETFs we use to invest your money. Fees vary for different ETFs but the ones we use have an average annual fund cost of 0.17%. You won't find these fees in any transactions listed on your dashboard because they are built into the ETF performance but they should be considered in the overall annual cost of your investments.
Transaction fees and costs are incurred at the time of buying and selling your ETFs and are not reflected in your dashboard but must be considered as part of the overall annual cost of your investments.
Transaction fees are the costs incurred as a result of buying and selling investments. There is usually a small fee paid to a broker when we buy or sell an ETF on your behalf.
All transaction fees are included in your InvestEngine annual flat fee of 0.45%.
Market spread is the difference between the buy and sell price when we trade in the market on your behalf. In our case the average impact of market spread is 0.04% per annum.
All trading activity is subject to market spread. However, we use a buy and hold investment strategy, only selecting liquid ETFs with smaller market spreads, and we only deal when the spreads are at their narrowest, enabling us to keep the average impact of market spread to 0.04% per annum.
We use historic market trading data, assume a balanced InvestEngine portfolio, and limit our orders through the professional dealers at Ramsey Crookall to trade only when the spreads are within certain predefined tolerances.
We provide you with a consolidated tax certificate at the end of each tax year, showing all your investment income and what each account has earned in the tax year. This information can be used to help complete your tax return.
Your General Investment Account (“GIA”) will be subject to income and capital gains taxes but your ISA does not pay any tax on your investment gains.
We do not provide tax advice.
It is also worth noting that most ETFs pay dividends, which will be added to your account. Because dividends are income for an investor, dividends generated from ETFs can be subject to tax in your GIA.
If you are still unsure, it may be worth seeking independent financial advice.
The value of your portfolio with InvestEngine can go down as well as up and you may get back less than you invest. Learn more about the risks
InvestEngine (UK) Limited does not provide investment advice, or give recommendations. If you are unsure of the risk or of the suitability of an investment, you should seek advice from an independent financial adviser.
InvestEngine® is a trading name and registered trade mark of InvestEngine Limited. InvestEngine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority. The Firm Reference Number is 801128. InvestEngine (UK) Limited is incorporated in the UK with company number 10438231 and has its registered office at Lawford House, Albert Place, London, United Kingdom.