Fidelity Institutional Wealth Services is slashing fees for advisers who trade on its FundsNetwork platform with the notable exceptions.
Effective from 1 January 2014, Fidelity will reduce fees to US$30, from US$40 for all buy and sell trades on its FundsNetwork platform, accounting for a saving of 25%.
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Additionally, Fidelity is also increasing buy fees by 25% to US$50 on five fund families, including the mutual fund offerings from the Vanguard Group.
The fund families that will be affected by the increase in fees include Dimensional Fund Advisors, CGM Funds, Dodge & Cox Funds and Sequoia Funds. However, sell-price for these five fund companies will be reduced to US$30, while purchase commissions for these funds will be US$50.
The fee changes will aslo apply to the retail channel.
Fidelity said that the round-trip for funds produced by these five fund companies will cost $80 — which is only $20 more than a new round-trip exchange for the other funds.
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By GlobalDataErica Birke, spokeswoman for Fidelity, said: "The reason we’re adding this charge is to address some disparity among the funds on the FundsNetwork platform. Unlike 99% of the fund families on the platform, these firms noted are not compensating Fidelity for administrative and shareholder services that Fidelity performs on their behalf.
"These services include but are not limited to, processing trades, dividends, answering questions, delivering required documents, supporting client inquiries and problem resolution, web and trading infrastructures, compliance and reporting to the fund," she added.
