james100
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Post by james100 on Mar 3, 2018 18:20:09 GMT
<snip> Even Vanguard direct add 0.15% platform charge, which I avoid if I use iWeb! <snip> In addition, Vanguard direct, unsurprisingly, deals only in Vanguard products, making it pretty impossible to manage the 30 day rule if I want to maximize my utilization of CGT allowance via non-ISA wrapped equities but maintain my equivalent portfolio holdings (as opposed to swapping e.g. VUKE for ISF with a provider that offers a full range).
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stevio
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Post by stevio on Mar 7, 2018 20:24:05 GMT
I have looked at REGULAR INVESTMENT options due to the low cost. I realize selling incurs the normal trading cost, so have bared that in mind. I hope to hold for a long period with little selling and when I do sell, sell in large amounts to limit the trading cost
Some Regular investment sites restrict what you can invest in to, particularly I discounted H&L RI due to this.
I also looked for accounts with NO ANNUAL FEE. As I plan to hold for a long period, I just want to pay for trading costs and not an additional annual fee. I realize some annual fees incorporate trading costs, but generally I found those who just charged for trading with no ongoing costs were cheaper for me.
I assumed a trading cost of 10 trades per £50k invested. Obviously other assumptions would produce different results.
Where there was a different cost to trade funds vs shares, I evaluated both options. With the % fee brokers, normally there is no cap on % charge on funds, but often a very reasonable cap on holding shares. For flat fee brokers, there is a trading cost for funds or shares, so there is less benefit to holding shares (ETFs)
Looking at TRADING accounts, iii seemed good with £1 regular investing but had a £90/yr fee. Halifax had £2 RI and no annual fee. Halifax is obviously a major bank and I am more happy to hold investments with them.
For an ISA, again iii has £1 RI but £90/yr fee. Halifax £2 RI and £12.50/yr fee. x-o.co.uk had no RI and therefore a higher trading cost at £5.95/trade but then I was not reliant on RI and selling costs were the same as purchase costs. x-o.co.uk had no annual fee. IWeb has a one off £25 (no annual fee) and slightly cheaper trading costs than x-o.co.uk of £5 vs £5.95 as well as being run by Lloyds group
For a SIPP, iii annual fee appeared to be (£120+£90) £220, Halifax £180 (for £50k+) and x-o.co.uk refunds any annual fee (with trading account). RI could be used for both iii and Halifax to reduce trading cost, but x-o.co.uk effectively has no annual fee.
For a LISA, as I wanted to invest in the stock market, it was a choice of H&L or AJ Bell for me. Other stock market options seemed too high cost. I was looking at investing the full £4k/yr and just one trade/yr. AJB RI is £1.50 trading and 0.25%/yr with a £30 cap on share costs, which as the balance increase, makes shares much cheaper than even funds. H&L RI is also £1.50 but has a very restrictive list. H&L % cost will also be higher for most.
I am wary of having large amounts on x-o.co.uk and would prefer Halifax/IWeb, but for the SIPP x-o.co.uk seems a good deal
With £50k FSCS protection on securities, per institution and per individual, it might be advantagous to pick different institutions for Trading, ISA, SIPP and LISA. As this is per individual, splitting investments with a partner effectively doubles this protection between you.
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mary
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Post by mary on Mar 7, 2018 20:35:02 GMT
Here is a reasonable comparison tool as every investor is different, and have different asset targets and goals...it allows you to predict costs based on your investment and trading frequency...for ISA and SIPP, and general... monevator.com/compare-the-brokers/ |
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jlend
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Post by jlend on Mar 7, 2018 21:29:56 GMT
I have haggled down the holding charge with H&L when I said I was leaving.
Might be worth a try for anyone with them who likes the service but thinks it is too expensive.
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Post by holmes on Mar 7, 2018 21:37:41 GMT
I have haggled down the holding charge with H&L when I said I was leaving. Might be worth a try for anyone with them who likes the service but thinks it is too expensive. I'm with HL too and like the platform but not the fees - if you don't mind me asking what did you manage to wangle out of them?
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jlend
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Post by jlend on Mar 7, 2018 21:53:07 GMT
I have haggled down the holding charge with H&L when I said I was leaving. Might be worth a try for anyone with them who likes the service but thinks it is too expensive. I'm with HL too and like the platform but not the fees - if you don't mind me asking what did you manage to wangle out of them? 0.25% up to 1m then zero after that. I have a lot in bonds and investment trusts which have a cap of £200 anyway which is worth bearing in mind
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Post by holmes on Mar 7, 2018 22:08:19 GMT
Thanks jlend - I feel a phone call coming |
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hazellend
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Post by hazellend on Mar 7, 2018 22:15:45 GMT
I'm with HL too and like the platform but not the fees - if you don't mind me asking what did you manage to wangle out of them? 0.25% up to 1m then zero after that. I have a lot in bonds and investment trusts which have a cap of £200 anyway which is worth bearing in mind HL is very cheap if you avoid funds and hold equities, ITs or ETFs. Even if you held millions they would be capped at £45 per year in ISA and around £200 per year in a SIPP.
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stevio
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Post by stevio on Mar 7, 2018 22:40:51 GMT
0.25% up to 1m then zero after that. I have a lot in bonds and investment trusts which have a cap of £200 anyway which is worth bearing in mind HL is very cheap if you avoid funds and hold equities, ITs or ETFs. Even if you held millions they would be capped at £45 per year in ISA and around £200 per year in a SIPP. AJ Bell You invest is cheaper again at £30 cap ISA and £100 SIPP for shares. Plus there fee is only 0.25% vs 0.45% at H&L. Though funds are £1.50 per trade but free at H&L. Regular investment is £1.50 and although H&L do the same, H&L only allow about 10 different ETFs, where as AJ has a comprehensive list (including several Vanguard ETFs)
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jlend
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Post by jlend on Mar 8, 2018 7:34:44 GMT
0.25% up to 1m then zero after that. I have a lot in bonds and investment trusts which have a cap of £200 anyway which is worth bearing in mind HL is very cheap if you avoid funds and hold equities, ITs or ETFs. Even if you held millions they would be capped at £45 per year in ISA and around £200 per year in a SIPP. Ì also like I can pay the fees from money outside the tax wrappers.
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jlend
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Post by jlend on Mar 8, 2018 7:50:18 GMT
0.25% up to 1m then zero after that. I have a lot in bonds and investment trusts which have a cap of £200 anyway which is worth bearing in mind HL is very cheap if you avoid funds and hold equities, ITs or ETFs. Even if you held millions they would be capped at £45 per year in ISA and around £200 per year in a SIPP. And if you hold equities, bonds, ITs and ETFs with them outside a tax wrapper then the holding fee for those is zero which is good
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jlend
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Post by jlend on Mar 8, 2018 8:31:08 GMT
0.25% up to 1m then zero after that. I have a lot in bonds and investment trusts which have a cap of £200 anyway which is worth bearing in mind Interesting. (Equity) Bonds is new to me. I’m all direct equity HYP for now but heading towards IT in about 10 years time. Could you elaborate why bonds and give a couple of examples? I have bought nearly all of the bond's on the lse orb at par on issue with no dealing costs via h&l inside and outside a tax wrapper. www.londonstockexchange.com/prices-and-markets/retail-bonds/newrecent/newrecent.htmI have sold bits of some of them over the years when the price has gone very high. Doing this outside a tax wrapped there is no cgt liability on any capital gain with a listed bond. New issues have dried up as companies can raise funds cheaper elsewhere. I must say I am no expert.... and bonds can fall as well as rise in value. They have been very liquid investments to date.
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jlend
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Post by jlend on Mar 8, 2018 9:41:10 GMT
Thanks jlend , the mechanics is interesting, but, I was more interested in why. Why personally might you buy SSE bonds rather than SSE shares for example? Less volatility? Capital gains (without tax)? Are you only buying on the primary market? It’s certainly none of my business and I’m happy to be told so if you say! Good question I. Spread of asset classes 2. CGT 3. Can be less volotile than shares in my experience 4. Regular income 5. Some bonds are index linked 6. I have plenty of shares via various pension schemes, funds. I do hold a corporate bond fund but have reduced that over the years 7. I did OK with them in the early days so have stuck with them 8. I have only ever bought at issue to keep costs low. There is always a premium for good bonds on the secondary market so I have never bought there. I am sure the stats will say that equites where you can get dividends and capital gains are better longer term so your approach is good I think
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jlend
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Post by jlend on Mar 8, 2018 10:01:20 GMT
A bit off topic
My favorite passive investment has been my tax free national savings index linked certificates that I roll over.
Not the most exciting or profitable but I like the guaranteed tax free income that beats inflation and guaranteed capital.
Am not surprised these are no longer available for new investment
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james100
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Post by james100 on Mar 8, 2018 13:26:53 GMT
Not so much for passive investing, but in addition to the monevator list, for anyone ok with % fee and wanting strong analytics and customer service, do also look at Saxo. I was with them for a fair few years...0.12% custody fee with excellent trading interface and depending on holdings they throw in their pro trading system and a personal account manager "for free". They also sell *everything*, have good currency spreads/comms and run a global cross-asset call/presentation at the start of the week which is hugely informative (thankfully I've not been removed from that mailing list yet).
I moved to cheaper shores but still miss them.
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