Our ISA fees and charges
As with all investing, there are generally always fees and charges associated with having a Stocks and Shares ISA.
Key types of fees and charges
The costs of investing within a Stocks and Shares ISA will vary depending on which type of financial product you invest in and which provider you use. No matter which investment manager or provider you choose, make sure you know about and understand all the fees and charges involved before you commit.
Below are a few types of charges you might see when considering your investment options, and explanations of what they mean. Further down we explain specifically how the fees and charges work with J.P. Morgan Personal Investing.
Platform charge
The platform charge is the administration fee you may pay if you have a Stocks and Shares ISA with a platform provider. Platform fees – also called account fees, among other names – are a charge for holding your investments, but not managing them. It is important to understand that even if you do not have an investment manager (which can attract a different fee, explained below), you may still pay a platform fee. The platform fee can vary considerably from provider to provider. Platform fees can be charged at a flat rate or on a percentage value of your funds.
Annual management fee
The annual management fee, which is also called the fund manager fee, is what an investment firm or investment manager will charge to look after your Stocks and Shares ISA. It relates to the ongoing cost of managing your investments on your behalf. This fee can vary considerably between investment managers. This is often separate (and can be on top of) a platform fee set out above.
Cost of selling and buying funds
A key part of investing is buying and selling different funds, as well as holding them. Whether you buy or sell funds on a platform yourself, or an investment manager does this while managing your Stocks and Shares ISA for you, both trading (transaction costs) and the funds themselves (investment fund cost) have a price.
Another cost linked to the buying and selling of funds is what’s known as the market spread. Whenever funds are bought and sold, there is often a buying price, and a selling price – the difference between these two prices is the market spread.
Transfer out fee
Some providers may charge a ‘transfer out’ or 'exit fee' if you decide you want to move to a different investment manager or platform provider. This can be charged per account, per security in the account, or both.
Advice fees
Some people like to use a financial adviser to help decide how to invest their money. If you do so, you’ll most likely pay a fee for these services. A financial adviser could help you manage your money and investments to fit with your personal circumstances, needs and financial goals.
J.P. Morgan Personal Investing ISA fees and charges
As a discretionary investment manager, we make the investment decisions on your behalf. If you have a Stocks and Shares ISA with us, the costs will include an annual management fee, the fund costs, and the effect of market spread. We do our best to keep these fees and charges as low as possible.
Our annual management fee
Like other investment managers, we charge a fee for managing your investments – the annual management fee. We charge this as a percentage of your portfolio value, and it includes any applicable VAT. We calculate the fee daily based on your portfolio value at the close of business, and then collect the fee automatically from your J.P. Morgan Personal Investing account once a month.
Investment fund cost
When you invest with us, as with any other investment manager, we use your money to buy investments on your behalf. These funds carry their own charges that impact your portfolio performance (as mentioned above). We primarily use exchange-traded funds (ETFs) as these help to keep your costs as low as possible. The costs of the funds held are reflected in the investment performance, and not charged separately to the account holder.
Effect of market spread
When you invest with J.P. Morgan Personal Investing, we buy and sell assets on your behalf. Another cost linked to the buying and selling of funds is what’s known as the market spread. Whenever funds are bought and sold, there is often a buying price, and a selling price – the difference between these two prices is the market spread, outlined above. We work hard to choose ETFs with smaller spreads, and we combine customers’ contributions and withdrawals when trading, to minimise this cost. This is also reflected in the performance of your portfolio, and not charged separately.
We offer six different investment styles for you to choose from. The costs of investing differ depending on the style you choose for your J.P. Morgan Personal Investing Stocks and Shares ISA.
Our personal advice service
We want to ensure you get the support you’re looking for, which is why we offer a personal financial advice service. This service is separate to investing with us. If you’d like to try our advice service, the initial phone call is free of charge. If, after the initial chat, you decide you want tailored recommendations and financial advice, we can prepare this for you for a fee. Details of these fees are available here. J.P. Morgan Personal Investing provides 'restricted advice', which means we will only make investment recommendations on the products and services that we offer.
Risk warning
As with all investing, your capital is at risk. The value of your portfolio with J.P. Morgan Personal Investing can go down as well as up and you may get back less than you invest. ISA eligibility and tax rules apply.
We provide 'restricted advice', which means we will only make investment recommendations on the products and services that we offer.