A simple tiered approach to fees
We’ve opened up the corporate bond market for private investors but in exchange we ask for a reasonable fee to help us run the platform.
On the first
£20,000
1%
Service Fee per year
Amount between
£20,000 - £50,000
0.75%
Service Fee per year
Amount between
£50,000 - £100,000
0.5%
Service Fee per year
Amount over
£100,000
0.25%
Service Fee per year
We only earn when our clients earn
Our Service Fees are only paid at the time coupon payments are received.
All inclusive
The custody, and administration of all investments is included in the Service Fees.
Frequently Asked Questions
Got questions? We’ve got answers.
Why Have I been Charged Fees When Transferring Money To or From My WiseAlpha Account?
When making international bank transfers, it's important to be aware that various financial institutions may apply fees for processing cross-border transactions.
These fees can be incurred at different stages of the transfer, including both the sender's and receiver's banks.
In the case of crediting your WiseAlpha account, if the funds are coming from an international bank account, the sender maybe charged fees by WiseAlpha’s bank. Local bank transfers, generally, do not incur such fees. Similarly, in the debit transactions will also incur fees. Again, having a local bank account should mitigate these charges.
International payments involve multiple intermediaries, and each may charge a fee for their services. Additionally, exchange rates may fluctuate, impacting the final amount received.
It's advisable to check with both the sending and receiving banks to understand their fee structures and policies on international transfers. This can be done by emailing customerservice@wisealpha.com.
WiseAlpha tries to minimise the impact of banking charges on its clients, however these are set by the bank themselves and WiseAlpha has no control over the charge rates.
When does WiseAlpha charge fees and how are they calculated?
The following applies only to investments in the £ Fractional Bonds and the fees are charged by WiseAlpha Technologies ("arranger") and not the Issuer of the Fractional Bonds, WiseAlpha PLC, which does not charge any fees to investors.
Tiered Annual Service Fee
For € & £ investments:
On the first £20,000 - 1%, amount between £20,000 and £50,000 - 0.75%, amount between £50,000 and £100,000 - 0.5%, amounts above £100,000 - 0.25%.
Based only on the principal amounts of the Fractional Bonds invested. Fees are collected on a pro rata basis when a borrower makes a coupon payment (this is either on a quarterly, semi-annual or annual basis).
Example calculation:
1) If you held £50,000 in principal amounts of Fractional Bonds you would be charged 1% on the first £20,000 and 0.75% on the next £30,000 giving an effective annual fee rate of 0.85%.
2) If you held £120,000 in principal amounts of Fractional Bonds across all of your WiseAlpha accounts (individual, SIPP, ISA, Corporate) you would be charged 1% on the first £20,000, 0.75% on the next £30,000, 0.5% on the next £50,000 and 0.25% on the final £20,000 which would give an effective annual fee rate of 0.60%.
Sale Fee
0.25% Sales Fee Payable only on the principal amount of the Fractional Bonds that you sell prior to maturity.
Please note any amounts you invest in UK Government bonds (Gilts) are not counted in the Service Fee Tiering calculation above. UK Government bonds (Gilts) are charged at a flat annual fee of 0.2%.
Where are fees taken from?
Service Fees will automatically be deducted from your WiseAlpha account when coupon payments are made on each Fractional Bond and if applicable the Sale Fee is taken from your proceeds at the time your Fractional Bond holding is redeemed (sold).
Can I sell my Fractional Bonds portfolio and withdraw my funds at anytime?
Clients wishing to sell their investments prior to their maturity dates can do so by creating a sell order on the Market page or relevant product page. Liquidity on our secondary market is dependent on there being an available and willing buyer at the market price. You will receive your cash in your account once another member has purchased the investments you are selling. Please note that a Sales Fee may apply.
To date everyone who has wanted to sell their investments has been able to do so. However, liquidity is not guaranteed.