Self-invested personal pension (SIPP) fees can be confusing, inconsistent, and surprisingly costly over the long term.
As such, you might even be tempted to ignore their existence. In fact, a 2025 survey from Freetrade and YouGov found nearly a third (29%) of investors have no idea how much they pay for their investment accounts.
But this ignorance could result in you losing thousands from your retirement savings - and that’s no exaggeration.
To keep you from scratching your head, this guide explains the different charges you might face, how they can add up in simulated scenarios, and explores how Freetrade’s low-cost SIPP stacks up against other platforms.
Before we get started, make sure to find out more if you are not sure what a SIPP is.
What are SIPP fees and charges?
Platform fee/Account fee
These fees are paid monthly or annually and may be a flat fee, or a percentage of your portfolio. Remember that percentage fees might seem small, but they can be quite large when you take the size of your portfolio into account, and they will continue to grow with your wealth.
From January 2026, Freetrade is making SIPPs free for all customers, along with access to mutual fund and gilt investments.
Dealing fee/Commission fee
This is an amount charged for each trade you make with your account.
Some providers might charge different fees depending on the nature of the trade, depending on factors such as the type of asset you are buying or selling, or how many trades you have completed so far in a particular month.
Freetrade is commission free, and will not charge you in this way. However, other charges may apply.
FX fees
These are charged for currency conversion, and will usually be applied to any purchase not made in your local currency.
For example, if you are buying US-listed shares these need to be paid for in USD. FX fees automatically cover the cost of the GBP in your account being converted into USD as part of the transaction.
Other fees
While the three above variants are the most common fee types for SIPP customers to worry about, they may incur other charges. These include:
- One-time fees: Some providers charge one-time fees for things like transferring out (also known as exit fees), transferring in, or entering drawdown.
- Fund management fees: Investments like mutual funds and ETFs usually charge a percentage annual management fee. Remember, this is charged by the fund managers and not your SIPP provider.
- Stamp duty: A 0.5% charge on eligible UK share purchases. This is a tax that will be automatically taken from a relevant transaction.
Always make sure to check a provider’s fees to make sure you understand what you will be charged.
Freetrade SIPP cost comparison
Freetrade fees based on new fee structure as of 22 January 2026. Interactive Investor fees based on new fee structure as of 1 February 2026. Other fees correct as of 21 December 2025.
*ii UK and US share dealing is £2.99 with Premium. International share dealing is £7.99 with Plus or £5.99 with Premium. Fund dealing is £1.49 with Plus and free with Premium. Dividend reinvestment is free with Premium.
While Freetrade has tried to keep things simple, that’s not the case across the board. As you can see, some providers have complex fee arrangements that might leave you scratching your head as to how much you will actually end up paying for your SIPP.
SIPP fee scenarios
We can’t delve into your personal finances, but here are how fees are racked up in some example scenarios. Remember that these are just the fees charged by the provider. Some types of investments, such as ETFs and funds, may charge their own management fees as well.
In each example, the applicable account with the lowest platform fee has been used.
1. Share trader
In this scenario, you have £150,000 invested in a SIPP and make ten share trades per month. These trades are split evenly between the UK and the US, with five UK trades totalling £5,000, and five US trades totalling £5,000.
2. Fund trader
In this scenario, you have £25,000 invested in a SIPP and make five fund trades per month. Four of these are for UK-based funds, but one £500 transaction is for a USD fund based in the US.
3. Set and forget
Of course, you might not be a particularly active trader. When investing with long-term horizons, sometimes it’s best to just let time smooth out the bumps in the road with a hands-off approach. Here is a breakdown of pricing for a £120,000 SIPP account invested in funds with no trading activity.
How does Freetrade make money?
When the platform’s prices are this low, you might be asking how Freetrade is able to afford it. You might even be thinking “what’s the catch?”. Fortunately, there isn’t one. Instead, Freetrade makes money through:
- FX fees
- Interest earned on uninvested cash and shares
- Subscription fees
Find out more with our explainer of how Freetrade makes money.
Are you paying too much for your SIPP?
This might leave you asking if your retirement pot is losing too much money to high fees. Remember that pensions are held over the long term, so the impact of high fees spread over years can be enormous.
In the rudimentary example below, you can see how three different £100,000 portfolios growing by 8% each year are impacted by charges. A fraction of a percentage might seem small at first, but over just two decades the difference can be tens of thousands of pounds.
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These are just illustrative figures. The actual amount you pay for your SIPP will likely depend on how you invest it, and the value of your portfolio may fall as well as rise. For tips on how to invest your SIPP at different ages, check out our guides to retirement investing in your 20s and 30s, and in your 40s and 50s.
Should you open a SIPP?
A SIPP can be a great way to bolster or seize control of your retirement savings, but it’s not right for everyone.
The main perks of a SIPP account include:
- Control: With a SIPP, you choose what to invest in. Normal DC pensions often leave you with a slim choice of generic funds, but SIPPs can give you access to thousands of stocks, ETFs, funds, and more.
- Consolidation: Opening a SIPP can be a means of consolidating your existing pension pots into one. This may make managing them simpler, and could reduce fees.
- Tax relief: Unlike other tax-efficient accounts, such as stocks and shares ISAs, SIPPs allow you to take advantage of tax relief on your contributions. This tax relief is between 20% and 45% depending on your tax bracket.
A good starting point is looking at the current state of your retirement savings. Check our guide to checking and improving your pension’s performance.
How to open a Freetrade SIPP
You can open a new SIPP and start saving for the future with Freetrade today. If you want to transfer an existing SIPP, just open an account via the web or mobile app and select ‘Transfer a pension’.
If you want to know more, check our key considerations for pension transfers.
Capital at risk. The value of your investments can go down as well as up and you may get back less than you invest.
SIPP rules apply. Tax treatment depends on your personal circumstances and current rules may change.
A SIPP is a pension designed for people who want to make their own investment decisions. You can normally only access your money from age 55 (57 from 2028).
Freetrade currently only supports Uncrystallised Fund Pension Lump Sums (UFPLS) for SIPP withdrawals.
Seek professional advice if you need help with your pension.
Before transferring, check for any exit fees or loss of benefits from your current provider.
Pensions transferred to Freetrade may lose protected pension age benefit, meaning you may not be able to draw the money until age 57.
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