SIPP Fees Explained: What to Watch for in 2026

When people compare SIPPs, they often start by looking at the headline platform fee.

That makes sense, but it does not tell the full story.

A SIPP can involve a range of costs, and some of the most important ones are not always the most obvious. In many cases, the real drag on returns comes not just from administration charges, but from dealing costs, foreign exchange pricing, custody structures and how the provider handles client cash.

This matters even more if you invest internationally.

Many UK platforms still operate in a way that forces clients to buy and sell USD and EUR positions in GBP first, rather than allowing straightforward multi-currency trading. That means every purchase and sale can involve a currency conversion, and if the provider's FX rate is opaque, the true cost of investing may be much higher than it first appears.

What are SIPP fees?

SIPP fees are the charges linked to running and using a Self-Invested Personal Pension.

These may include:

• annual platform or administration fees
• dealing charges
• custody charges
• drawdown fees
• transfer fees
• foreign exchange charges
• underlying fund charges

Some of these are clear and visible. Others are less obvious.

That is why looking only at the annual platform fee can be misleading. A SIPP that looks cheap on paper may still be expensive overall if the provider makes money elsewhere.

The problem with headline pricing

A lot of providers market themselves around a simple message.

It may be:

• free trading
• low-cost investing
• subscription pricing
• no platform fee

But those headline messages do not always mean the investor is getting clean execution.

In practice, some firms may:

• retain interest earned on client cash
• add spreads to FX conversions
• widen the effective dealing spread
• charge subscription fees while still monetising trading activity in the background

So while the front-end message may sound cheap, the total cost can be much harder to see.

Why FX costs matter so much in a SIPP

This is one of the most overlooked parts of SIPP pricing.

A lot of UK investors want access to US and European markets. That means buying assets priced in USD or EUR. On many platforms, clients are still required to trade through GBP, which creates a conversion on the way in and another on the way out.

If the FX rate is not clearly shown, the investor may not realise how much is being lost in the process.

Some providers may add spreads of up to 1% on FX or on the effective trade price. That may not sound huge at first, but over time it can become a meaningful drag on returns, especially for larger portfolios or investors trading regularly.

This is one reason “free” is not always really free.

The UK retail trading model and the hidden spread issue

A lot of the UK retail platform market still works on an outdated model.

Clients are often shown:

• no commission
• simple subscription pricing
• low or capped annual fees

But behind the scenes, the provider may still be earning revenue from:

• FX spreads
• retained cash interest
• wider dealing spreads
• internal execution margins

That means the investor may be paying, just not in a way that is easy to see.

For anyone building a long-term pension portfolio, that matters. A small hidden cost repeated across every currency conversion and every international trade can add up over many years.

What transparent SIPP pricing should look like

A transparent SIPP should make it easy to understand:

• what the annual fee is
• what each trade costs
• whether there is a custody fee
• whether cash interest is passed back or retained
• how FX is priced
• whether the investor can hold and trade in multiple currencies directly

The more moving parts there are, the more important clarity becomes.

A provider does not have to be the cheapest on every line item to offer value, but the investor should be able to see clearly where the costs arise and how the model works.

Commission-free is not always the same as low-cost

This is another area where investors need to look closely.

A provider may advertise commission-free trading, but if it adds a spread elsewhere, the investor still pays.

The real question is not just: “Is there a dealing fee?”

It is: “What is the total cost of completing this trade?”

That total cost may include:

• the dealing fee
• the bid/offer spread
• the FX rate applied
• any custody or wrapper charge
• any retained interest on cash awaiting investment

Invinitive’s approach

At Invinitive, we believe SIPP pricing should be straightforward.

Our approach is built around:

• commission-free trading
• spread-free trading
• no hidden mark-up added to the trade price
• FX priced at 0.0025 against spot, which is closer to institutional-style execution than the traditional UK retail model

That matters because it helps avoid the common situation where a client buying or selling a USD or EUR position through GBP is quietly losing value in the conversion process.

We also believe investors should be wary of platforms that push the “free” or subscription narrative while still retaining cash interest and adding spreads in the background. In our view, transparent pricing means the client should be able to see how the provider is paid and what the true cost of investing really is.

Why this matters over the long term

SIPP investing is long-term by nature.

That means small differences in cost can have a meaningful impact over time. If unnecessary friction is built into trading, FX or cash handling, it can quietly reduce the value of the portfolio over many years.

This is especially relevant for investors who:

• trade internationally
• hold US or European assets
• rebalance regularly
• keep meaningful cash balances during transfers or while waiting to invest

The cleaner the structure, the more of the return stays with the client.

What to ask when comparing SIPP providers

If you are comparing SIPPs, it is worth asking:

• Do I have to buy and sell foreign assets via GBP?
• Can I hold cash in multiple currencies?
• What FX rate is actually applied?
• Is any spread added to the conversion?
• Is cash interest retained by the provider?
• Are there dealing or custody charges beyond the headline fee?
• What is the real total cost of ownership?

These questions usually tell you more than the front-page pricing summary.

Final thoughts

SIPP fees are not just about the annual platform charge.

For many investors, especially those using international markets, the bigger issue is often the hidden cost of trading and currency conversion. In the UK, it is still common for platforms to force USD and EUR trades through GBP, using FX rates that are not always easy to see or compare.

That is why it is important to look past the “free” narrative and understand how a provider really makes money.

A good SIPP should not just look competitive on the surface. It should offer genuine clarity on fees, cash handling, dealing and FX, so the client can make informed decisions and keep more of their returns.

FAQ

What fees can apply to a SIPP?

A SIPP may include platform fees, dealing charges, custody fees, drawdown fees, FX charges, transfer fees and underlying fund charges.

Are all SIPP fees obvious?

No. Some costs are visible, but others may sit within FX pricing, dealing spreads or retained interest on cash.

Why does FX matter in a SIPP?

If you invest in US or European assets, currency conversion can become a meaningful cost, especially if the provider forces trades through GBP and applies an opaque FX rate.

Is commission-free trading always really free?

Not necessarily. A provider may remove an explicit dealing fee while still earning money through spreads, FX mark-ups or retained cash interest.

Why should I care about cash interest?

Because some providers retain interest earned on client cash, which can form part of their revenue model even when headline pricing looks low.

What should I ask a SIPP provider?

Ask how FX is handled, whether trades are forced through GBP, whether cash interest is retained, and what the true total cost of ownership looks like.