Thanks to MiFID II regulations which came into force in 2018, providers must send you an annual statement breaking down these charges. This makes it much easier for you to see where your money is going and ensure you are comfortable with the fees associated to your account.
What is MifID II?
MiFID II is the Markets in Financial Instruments Directive II – a set of rules that affects certain financial service companies across the European Union.
It is intended to make sure financial service providers are being transparent with their customers.
This directive make sit much easier for investors to see what they’ve been charged – and then be able to compare the cost of various platforms to see whether they can get a better deal.
Why is this important?
For many investors, fees can feel like a distant concept. By receiving a detailed breakdown in pounds and pence of all the fees they pay for their investment each year, customers have more information and power over their finances – just as it should be.
Although the figure on the statement may come as a shock to some, the transparency is there to help investors understand exactly how much they are paying and decide whether the service they are receiving is worth the overall price.
There is always a cost to investing, but any charges you pay can have an impact on the size of your pot. The effect of fees over time can make a big difference in the long term so they’re worth considering.
This doesn’t mean that the cheapest is always the best, but it’s important that you feel you are getting value for the money you are spending.
At OpenMoney we believe the financial industry could be a lot more transparent and we celebrate directives like this which ensure customers are in the know about their own money.
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