Why does a 1.5% order fee cost far more than it sounds?

Because it is charged on every single execution, not once. Monthly saving means twelve deductions a year, each from the full instalment. Over twenty years that is 240 charges of 1.5% — and with every deducted amount goes the return it would have earned until the end of the term.

Is a flat fee better than a percentage fee?

It depends on the instalment. At 50 a month, one unit per execution is more expensive than 1.5%; at 500 a month it is far cheaper. Set both models in the calculator and compare the final value — the break-even sits where the flat amount and the percentage produce the same deduction.

What exactly is the TER?

The total expense ratio is the fund's ongoing cost. It is not billed separately: it is taken pro rata out of fund assets every day and therefore reduces performance. Broad index ETFs typically sit between 0.05% and 0.25% per year; active funds considerably higher.

Why is total fees higher than the order fees added up?

Because the figure captures the full damage: order fees paid, TER cost, and the return those amounts could no longer earn. The comparison is against the same plan with no charges at all. The plain sum of order fees paid is shown as its own line underneath.

No. Capital gains tax, notional-income charges, partial exemptions and local surcharges depend on residency, fund structure and personal circumstances. Every figure is nominal and pre-tax, and inflation is not modelled either.

Calculators

ETF savings plan calculator

Costs and final value of a savings plan over time.

An ETF savings plan carries two layers of cost: the fee taken off each instalment at execution, and the TER charged continuously against fund assets. The first is obvious, the second almost never is. This calculator separates them, shows the balance year by year, and puts a 1.5% order fee next to a free execution across the whole term.

Your plan

One execution per month, the fee comes off before anything is invested.

Monthly instalment

Term20 years

Expected return p.a.6 %

Before TER and order fees.

Order fee model

Order fee per execution

What the broker charges for each savings-plan execution.

ETF TER

Ongoing fund cost, charged annually against fund assets.

Currency

Assumptions

One execution per month. Saving quarterly costs less under a flat fee and exactly the same under a percentage fee.
The order fee is deducted from the instalment; only the remainder is invested. Percentage fees scale with the instalment.
The TER is deducted as percentage points from the annual return and applies to the whole fund holding.
The return is treated as constant. Real markets fluctuate, and the order of the years changes the result.
Not included: taxes, front-end loads, custody fees, trading spreads and currency effects.

Final value

€109,193

After order fees and TER.

Total contributions: €60,000
Investment gains: €49,193

Total fees

€4,167

The gap to the identical plan with no order fee and no TER — fees paid plus the return they could no longer earn.

of which order fees (paid): €900
of which TER cost: €3,267
Share of the fee-free result: 3.7 %

1.5% order fee against 0%

€1,663

Same return, same TER, same term — only the order fee differs.

At 1.5% per execution: €109,193
With no order fee: €110,855
Difference: €1,663

Year by year

Year	Contributions	Order fees	Gains	Balance
1	€3,000	€45	€33	€3,033
2	€6,000	€90	€241	€6,241
3	€9,000	€135	€636	€9,636
4	€12,000	€180	€1,228	€13,228
5	€15,000	€225	€2,028	€17,028
6	€18,000	€270	€3,048	€21,048
7	€21,000	€315	€4,302	€25,302
8	€24,000	€360	€5,802	€29,802
9	€27,000	€405	€7,563	€34,563
10	€30,000	€450	€9,601	€39,601
11	€33,000	€495	€11,930	€44,930
12	€36,000	€540	€14,569	€50,569
13	€39,000	€585	€17,535	€56,535
14	€42,000	€630	€20,846	€62,846
15	€45,000	€675	€24,524	€69,524
16	€48,000	€720	€28,589	€76,589
17	€51,000	€765	€33,064	€84,064
18	€54,000	€810	€37,973	€91,973
19	€57,000	€855	€43,340	€100,340
20	€60,000	€900	€49,193	€109,193

Note: These calculators are for information only and are not investment advice. Content on Brokaro is for information purposes only and is not investment, legal or tax advice. All information is provided without guarantee; only the provider's own statements are authoritative.

How this is calculated

The plan is stepped through month by month. First the order fee comes off the instalment — only the remainder is invested, exactly as at real execution. Then the balance is compounded at the effective monthly rate, which already has the TER deducted from the annual return.

Formula

Invested per month = instalment − order fee; balance = previous balance × (1 + i) + invested, where i = (1 + return − TER)^(1/12) − 1

For the total cost figure the same plan is run a second time with no order fee and no TER. The difference between the two final values is the complete fee damage, because it also carries the return every deducted unit could no longer earn. The 1.5% versus 0% comparison holds return, TER and term constant and varies only the order fee.

Which brokers offer savings plans with no execution fee, and on what terms, is documented in the individual reviews — promotional conditions are often time-limited or tied to a minimum instalment.