Financial expert warns: Why ETF savings plans could become more expensive and how investors should react.

Financial expert warns: Why ETF savings plans could become more expensive and how investors should react.

According to a report by amp.focus.de, it is feared that ETF savings plans could become more expensive in the future. The reason for this lies in a possible EU ban on so-called “incentives” for “execution-only” sales, which also include ETF savings plans. These incentives, known as kickbacks, are payments made by ETF providers to banks and brokers, allowing them to offer free savings plans.

According to a study by the investor portal extraETF, there are almost 6.8 million ETF savings plans in Germany, and small savers in particular have used them because of their attractiveness. Many neobrokers and direct banks currently do not charge any fees for ETF savings plans because the ETF providers cover the costs of order execution. If the EU ban is implemented, many banks and brokers could be forced to introduce fees for ETF savings plans. This would particularly disadvantage small savers.

The introduction of fees could result in investors having to pay an expense ratio of up to 4 percent for their savings plans, which could deter many. This measure would also counteract the EU's goals of promoting access to low-cost financial products. However, it remains to be seen whether the kickback ban will actually be implemented. Investors could still take action against the introduction of fees by contacting MEPs or starting an online petition.

It remains unclear what the future of ETF savings plans will look like, whether with or without fees. However, there are currently no concrete recommendations for new investors. In any case, it seems advisable to follow further developments closely and, if necessary, to represent your own interests as an investor.