Fund charges can be broken-down into two areas; the first are the charges imposed by the administrator or execution only broker and the second are the charges levied by the actual fund management company.

Depending on which broker an investor uses, an investor can expect to pay their broker an annual fee between 0.2-0.4% to their administrator. The administrator will be the online execution only broker where the funds were purchased. An administrator will also potentially charge for other items associated with the service; some charge exit fees and some charge administration fees on accounts as examples.

The actual fund manager charge is usually larger in terms of percentages. This is usually around 0.95% per year, and this pays for the running of the fund and the fund management team.

It is important to understand the full charges associated with an execution broker and chose the broker that best suits requirements as significant savings can be made by selecting the most suitable broker.