Down with exorbitant platform fees, down!

Simon Brown of JustOneLap.com focuses on a fee that is mostly overlooked and patently unfair – platform fees.

Somehow the global financial services  industry has got away with charging a percentage-based platform fee, calculated on the value of your investment portfolio. So as your investment portfolio grows, so does your platform fee.

Admittedly, many platforms will reduce the percentage rate as the value increases, but the question is simple: Does it really cost more for them to hold a record of a R50 000 portfolio than it does to hold a record of a R20 000 portfolio?

Both portfolios are just entries on a database; entries that cost exactly the same regardless of how much money the entry may be for.

The reality is that the cost is fairly fixed, and investment platforms should be charging a flat fee.

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