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
Service Fee per year
Amount between
£20,000 - £50,000
Service Fee per year
Amount between
£50,000 - £100,000
Service Fee per year
Amount over
£100,000
Service Fee per year
Our Service Fees are only paid at the time interest payments are received.
The custody, and administration of all investments is included in the Service Fees.
Got questions? We’ve got answers.
The following applies only to investments in the £ Fractional Bonds. € Fractional Bonds have 0% Service Fees. All investments made in € Fractional Bonds before the end of 2019 will continue to have 0% Service Fees until maturity.
Tiered Annual Service Fee
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 an interest payment (this is either on a quarterly, semiannual 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 € Fractional Bonds or other WiseAlpha products are not counted in the Service Fee Tiering calculation above.
Fees will automatically be deducted from your WiseAlpha account when coupon payments are made on each Fractional Bond - there's no extra payment to be made.
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.