Because structured products are bespoke, it is important that investors understand the terms of an instrument before investing. The terms will determine how an instrument will behave if certain conditions are met. Thoroughly evaluate any financial professional with whom you intend to do business.
Understanding the fees an investor pay is key to understanding an investment. As with any business, there are costs associated with running an activity that buys and sells securities or provides investment advice. These include transaction costs and operating expenses such as salaries, advertising, and technology.
Product costs may not be paid directly by yourself, they could be charged by the manufacturers and reduce the returns achieved. Those fees should be disclosed in both the pre-trade and annual costs and charges reports to improve clarity and help you understand what you are paying for.