Adviser, platform and fund charges: what is the total cost?
An adviser fee may be only one part of the bill. Ask for advice, platform, fund and any other charges separately, then check the total. Only add percentages directly when they apply to the same amount over the same period and are not already included elsewhere.
Understand financial advice costs →
An example using the same £200,000 for a full year
| Charge | Illustrative rate | Annual cash cost |
|---|---|---|
| Ongoing advice | 0.75% | £1,500 |
| Platform | 0.25% | £500 |
| Funds | 0.20% | £400 |
| Combined | 1.20% | £2,400 |
Invented rates with a constant balance, no tiers or minimums, and no overlap between charges. Initial advice, dealing, product charges, tax and other costs are excluded. A real quote may use different charging bases.
What cost layers can apply?
Why separate them?
Two advisers can quote the same ongoing adviser percentage while recommending arrangements with different underlying costs. Separating each layer makes comparison clearer.
Ask for pounds as well as percentages
A total percentage can be translated into a cash amount at your current asset level. That makes it easier to understand what a typical year may cost.
Cost still needs service context
The lowest total cost is not automatically the best option. Compare what planning, access, investment oversight and reviews are actually included.
Build the total one layer at a time
Start with the service you are buying, then list every organisation paid to deliver it. There may be an adviser, a platform or pension administrator, an investment manager and the underlying funds. Some charges appear as deductions while others are reflected within investment values.
Ask whether quoted figures include initial planning, implementation and ongoing advice. Then add the recurring product and investment costs that apply. Do not add two figures blindly if one already includes the other; request a consolidated illustration identifying which amounts are included and which are additional.
The total should relate to the same assets and period. A percentage charged on invested assets cannot always be compared directly with a flat administration fee or a transaction charge that arises only when you trade.
A worked example of a layered quote
Imagine an unchanged £200,000 portfolio with a 0.75% adviser charge, 0.25% platform charge and 0.20% fund cost. On that simplified basis, the annual amounts are £1,500, £500 and £400, making £2,400 or 1.20% altogether. If a separate £2,000 initial planning charge applies, the simplified first-year total becomes £4,400.
This is an invented comparison, not a current offer or a return forecast. It excludes any additional dealing, transaction, tax or discretionary-management costs. Actual deductions can differ because values change and providers use different calculation periods.
Now compare a quote showing a single 1% figure. It could be cheaper if that includes equivalent services and underlying costs, or more expensive if it is only the adviser layer. The missing scope is more important than the apparent difference between 0.75% and 1%.
Look at the existing arrangement as well
Ask for the current cost of keeping what you already have. A proposed move should be compared against the relevant alternative, including any lost benefits, transfer costs or new initial charge. A cheaper ongoing service does not instantly recover an expensive move.
Separate costs you control from costs that depend on activity or market values. Ask how often the firm will provide a cost statement and how it explains changes. If you stop advice, establish which platform and investment charges continue.
The lowest total is not automatically the most suitable service, but an unexplained total makes informed comparison difficult. Before agreeing, you should be able to describe what each major charge pays for and which provider is responsible.
Sources and further reading
MoneyHelper - Financial adviser fees ↗
Advisedly: published financial advice fees research and methodology ↗
