How you invest in an exchange-traded fund will affect the costs you pay. If you invest through a stockbroker you will pay brokerage charges, depending on the size of the transaction, and typically a minimum brokerage charge will apply. There is also a custodian and administration fee. If you use an investment plan you typically pay an annual administration charge and debit-order fee on recurring investments, but the SatrixNow platform only charges a transaction fee. If you use an investment platform, you will pay an annual administration fee. ETFs and index-tracking unit trusts have total expense ratios that show the asset management costs, audit, custodian and trustee fees and other costs incurred within the fund. But to assess the impact of the costs of accessing an investment through a platform or investment plan, you need to look at the effective annual cost.
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