Investors Chronicle

May 2002

Investment · Savings · Protection Buy into cheaper dealing

Discount broker Cavendish Online will now return all the annual trail commission it receives from fund and Isa purchases. Some discount brokers refund up to 50 per cent of their annual trail commission, but Cavendish will refund it in full and charge a £10 annual fee instead. If the trail commission is less than £10, Cavendish will waive the remainder of its fee. Assuming 0.5 per cent trail commission and 5 per cent annual growth on a £50.000 investment, a 50 per cent refund of trail commission would return £1,572.25 over 10 years, whereas Cavendish Online would refund £3,044.46 after charges. Cavendish Online will also refund full trail commission on VCTs, with-profits bonds and offshore bonds, but not on pensions, as this is not permitted for tax reasons. There is a £20 commission (fee) for fund or Isa purchases (£25 if you need to be sent the application form) and all initial commission is refunded. Customers of other IFAs can switch their investments to Cavendish Online for a £10 transaction fee. For more details, see www.cavendishonline.co.uk or telephone 01225 471 912.

John McLeod