Save a packet using an execution-only broker
IN these times of economic slowdown smart investors are looking at ways of putting more money back into their pockets.
One of the best ways of achieving this is to review your investment decisions and by doing extra research on what financial products are available.
This applies particularly when looking at the charges you pay for pensions and investment products.
And this is where execution-only brokers come into their own, because you can save yourself a packet in terms of commissions and fees.
The downside is you do not receive any advice on the product or the funds.
Online financial service provider Gerard Sheehy of www.prsa.ie says savings of €8,000 to €9,000 over an 11-year period are possible on an investment or pension if you opt for a competitive product from an execution-only broker compared with one of the less competitive products that you might buy from a product provider.
An execution-only broker will sell the product on a nil-commission basis, saving you initial commission which can be as high as 27pc over the 11 years, renewal commission of 2pc and trailer commissions of up to 1pc.
But do take advice if you are not comfortable in making your own investment decisions.