Charges
Dealing charges used to be fixed - on a scale of commissions laid down by the Stock Exchange - but this practice ended years ago.
Now full competitive pressures apply and all our members, in fixing these levels, need to take market forces into account.
There are essentially two systems.
- There are commissions charged on each purchase or sale of securities, normally as a percentage of the money being invested or raised.
- And there are fixed fees, charged perhaps once or twice a year, for a continuing service such as investment management (this is not normally associated with the actual buying and selling of shares).
Some firms offer a tariff which combines elements of both of these systems, a mixture of fees and commissions.
Many firms offer different scales of charge for different services and, if you find these in any way difficult to understand, you should not hesitate to ask the firm in question to explain them in detail.
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