Custody Fee
What is a custody fee?
A custody fee is what some platforms charge for looking after your investments. Your shares and funds are held in their name on your behalf. Custody means safekeeping.
Is it the same as a platform fee?
Sometimes. Some platforms bundle custody into their platform fee. Others list it separately. A few charge custody fees on top of platform fees.
When comparing platforms, look at the total cost. Not just one fee in isolation.
How much are custody fees?
It varies. Some platforms charge nothing. Others charge a percentage of your holdings (like 0.25% per year) or a flat fee (like £5 per month). The structure matters more than the label.
Do all platforms charge custody fees?
No. Many platforms include custody in their standard fee. Some commission-free platforms don’t charge any custody or platform fee at all. They make money other ways, like earning interest on your uninvested cash or charging for premium features.
Key points about custody fees
- Fee for holding your investments. Safekeeping
- Often bundled into platform fee. Check what’s included
- Some platforms don’t charge it. Business models vary
- Compare total costs, not individual fee labels