GLOSSARY TERM
Platform Fee
A platform fee is a fee charged by an investment platform or broker for using its service.
What does this mean in practice?
It may be charged monthly, yearly or as a percentage of the assets you hold. Unlike a trading fee, it can apply even when you are not actively buying or selling. This means the cost can continue simply because your investments are held on that platform.
Example
A broker charges 0.25% per year for holding and managing your investment account on its platform. Even if you make no trades, the platform fee still affects your return.
Why it matters
Platform fees can reduce long-term returns more than people first expect, especially over many years. They are worth checking alongside fund costs and trading fees.
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