How to cut down on broker fees

While brokers have cut charges for some investments, many have raised fees on others. So, where can you still get a good deal? Cris Sholto Heaton explains.

If you invest in open-end' funds (such as unit trusts), we have good news your costs are likely to drop over the next few years. That's because the trail commission' payments made by fund managers to brokers (which ultimately come out of the money you've invested) are being banned.

Instead, brokers will charge you directly for looking after your money, and this will be both more transparent and less expensive than paying the broker indirectly via commission. It's about time as we've often noted here at MoneyWeek, unit trusts have rarely represented the best-value way to invest.

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.