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Fidelity clawback of free ETF trading costs to hit investors

Nine issuers have been told it will cost $100 to buy any of their funds if they do not make ‘support’ payments
The proposed increase in the cost of trading some ETFs runs against a long-term trend in which trading and investment costs have dropped sharply

Fidelity plans to start charging investors $100 per trade to buy exchange traded funds if sponsors do not agree to make “support payments”, pushing back against retail brokers’ long-standing policy to offer customers low-cost trading.

Fidelity’s brokerage arm is asking ETF sponsors to pay 15 per cent of total fund revenue to avoid the $100 charge, said multiple people with knowledge of the support payment agreements.

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