I am very late getting a pension set up - …ok, so I’ll do a FreeTrade SIPP and do some trading off my own research - all good…
…then I find out the scumbag government want to charge me 0.5% of the captial on each trade!!! …so angry about that as it renders any “trading up” ideas totally bunk to me, and anyway I dont want to pay the govenment a single penny if I don’t have to…
…so what are the alternatives? - does anyone know how I find which assets in a Freetrade SIPP are not subject to some charge like this, or otherwise have suggestions, or words that might calm me down?
thanks Cameron - I don’t really know much about funds. Is this a way to go that avoid this 0.5% stamp duty? I imagine there are management fees, but don’t know how much they are. Can I buy these through free-trade on my own, or will I have to go through some other pension provider that will charge me god knows what?
any clues much appreciated
EDIT - oh - “ETF” is a fund? - I thought we were talking about these crypto signed things, but those are “NFTs” -
Haha yes, it’s just a fund that is bought/sold on an exchange. I would have serious reservations about a pension of NFTs.
Although you can avoid the stamp duty funds will still have management fees, you can buy through Freetrade but however you buy them you have to pay the management fee (which isn’t a separate charge it’s just baked into the price of the fund.
Each fund will tell you how much you pay (in %) for management fees in the documentation.
The reason so many people choose funds is to diversify risk and because they believe they cannot outperform the market. If they believe they can identify talented fund managers who will beat the market they might choose an actively managed fund if not they will probably choose a passive fund, which tends to be cheaper.
If you’re investing with your pension it’ll likely be far larger than any other savings you have, please please please research before buying anything! Waiting a few days to ask questions here and read that extra article might make the difference between eating AND heating as opposed to having to choose.
No worries … Yesterday I bought some Bitcoin on Kraken after transferring via bank transfer and then sent the BTC to exodus wallet… I lost 8% of the value in the process… Bear in mind Kraken is one of the cheapest exchanges! Therefore I’m not complaining about 0.5%