Do SIPPs cost more?
Wanting to control you investments for you retirement is a very natural thing. The Self-Invested Personal Pension (SIPP) is a type of personal pension that allows you to manage your pension pot in a tax-efficient way. And SIPP charges are not that different from normal trading fees.
SIPP is a great option if you want to control your own investments. Typically, SIPP accounts do not cost more than having a trading account, while with SIPP you can also take advantage of the tax benefits.
We, at BrokerChooser, want to help you make sense of a complicated financial world, so we checked brokers that offer SIPP to save hours of research for you. Find our top recommendations for best brokers for SIPPs here.
But first, let's see what fees you need to take into account when opening a SIPP account!
What are the SIPP charges at Hargreaves Lansdown
Fees associated with a SIPP account are generally the same ones you would to pay when holding a regular trading account with a broker. If you want to learn more about what these fees mean, check out our explainer.
Here is an overview of the typical fees for a SIPP account:
Non-trading fees:
- Account fees: fixed amount, or a percentage of the value of the portfolio
- Custody fees: fixed fee charged for managing your account
- Inactivity fees: charged after a certain amount of time you stop using your account
Trading fees: charged when you invest in an asset (same as with a trading account)
- It depends on what asset you trade and on which market
- You might need to pay a conversion fee if your transaction requires a currency conversion
|
Account fee
|
No
|
Yes
|
No
|
|---|---|---|---|
|
Annual SIPP management fees
|
$180.0 | $155.9 | $120.0 |
|
Custody fee
|
No
|
No
|
Yes
|
|
Inactivity fee
|
No
|
No
|
No
|
|
UK stock fee
|
$14.9
|
$5.0
|
$12.4
|
|
US stock
|
$14.9
|
$5.0
|
$12.4
|
|
EU/UK government bond
|
$14.9
|
$5.0
|
$12.4
|
|
US Treasury bond
|
-
|
-
|
-
|
|
Fund trading fee
|
$0.2 | $10.0 | $3.8 |
Data updated on July 19, 2024
Are there other SIPP related charges to consider?
No, the table above covers all costs that might occur when using a SIPP account. However, if you decide to move your pension to another service provider, the sending service provider might charge you a transfer out cost.
It is either a:
- Fixed fee: e.g. $145 per transfer
- Variable fee: that is calculated per asset in portfolio
Let's see the how much it would cost to transfer a portfolio with 10 assets.
|
SIPP transfer portfolio out fee
|
$0 | $0 | $0 |
|---|
Data updated on July 19, 2024
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Further reading
Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.
