stevio
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Post by stevio on Mar 8, 2018 14:09:59 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. Could you help me in understanding their charges, it seems you need a degree to understand it! If I were just to buy funds or ETFs for example
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james100
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Post by james100 on Mar 8, 2018 15:05:16 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. Could you help me in understanding their charges, it seems you need a degree to understand it! If I were just to buy funds or ETFs for example This might help www.home.saxo/en-gb/rates-and-conditions/equities-and-etfs/commissions so if you are on the standard activity rate card it looks like transaction commission 0.1% min £5 per trade on LSE. Plus the 0.12% custody fee. I think the transaction charges used to be higher than this, but I was signed up with the Singapore office and pricing varies across regions...I was definitely paying 0.15% min $20 per trade when I was there. If you click on the blue box at the top of that link you can sign up for a demo version of the SaxoGO trading platform to play with...it won't show the full capabilities but will give a good idea. If you sign up for a live account you have to subscribe to different info source T&Cs as a private investor to get the cheaper or free compared to non-professional rates which I assume is why they aren't pre-selected on the demo version...I was getting Level 2 for £7/month (compared with roughly equivalent option for interactive investor £24/month) but everything else was free.
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Post by mattygroves on Mar 9, 2018 11:28:33 GMT
I was with HL and agree that their website and customer service is good. I moved when they changed their charging structure (even though I managed to get them down to 0.25% by threatening to leave). There were too many fixed cost options that were considerably cheaper. I was tempted to keep my shares / ITs / ETFs with them though as the £45 flat charge is cheap - in the end I took advantage of the fee free transfer out as I couldn't be sure that would be in place in the future.
I'm now with iii and after the initial pain of moving everything over am happy with their service (but I haven't got complex needs). They offer all the shares, ETFs, ITs and funds I've ever wanted to invest in although I am much more of an active
The £90 charge covers me for both my ISA and trading account and as it is a trading credit it covers the trading costs of rebalancing that I do each year. I am no longer regularly investing but it would be enough to cover 4 trades a month for free and almost 5 at £1.50 a trade. When I was investing monthly into my ISA I bought 4 funds so it would have been enough. A normal trade costs £10 and if you do more than 10 in a month (all accounts combined) then the unit cost comes down to £6 a trade. So it would be possible to get 15 trades out of your £90 fee if you were prepared to do them all in one month.
The SIPP costs me £120 a year but no trading credit although I can use the trading credit accrued on my other accounts if I want to trade. Given I contribute once a year this isn't a hardship.
BlackRock and Legal and General do alternatives to the Vanguard lifestyle fund if you want one fund rather than a mix of ETFs for diversification and I am sure there are others as well.
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stevio
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Post by stevio on Mar 9, 2018 22:30:41 GMT
Could you help me in understanding their charges, it seems you need a degree to understand it! If I were just to buy funds or ETFs for example This might help www.home.saxo/en-gb/rates-and-conditions/equities-and-etfs/commissions so if you are on the standard activity rate card it looks like transaction commission 0.1% min £5 per trade on LSE. Plus the 0.12% custody fee. I think the transaction charges used to be higher than this, but I was signed up with the Singapore office and pricing varies across regions...I was definitely paying 0.15% min $20 per trade when I was there. If you click on the blue box at the top of that link you can sign up for a demo version of the SaxoGO trading platform to play with...it won't show the full capabilities but will give a good idea. If you sign up for a live account you have to subscribe to different info source T&Cs as a private investor to get the cheaper or free compared to non-professional rates which I assume is why they aren't pre-selected on the demo version...I was getting Level 2 for £7/month (compared with roughly equivalent option for interactive investor £24/month) but everything else was free. Thanks for taking the time to explain, I will take your word for the charges as I looked again after reading you explanation and still seems hazey With those charges, is there any benefit here over lower cost brokers like iweb and x-o?
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stevio
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Post by stevio on Mar 9, 2018 22:38:46 GMT
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. Thanks jlend very interesting How come no dealing costs? Are they not classed in with shares and the like? How come no CGT, looking briefly, bonds seem to have IT??? What is the most yours have risen and over how long? Thanks
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jlend
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Post by jlend on Mar 9, 2018 23:16:15 GMT
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. Thanks jlend very interesting How come no dealing costs? Are they not classed in with shares and the like? How come no CGT, looking briefly, bonds seem to have IT??? What is the most yours have risen and over how long? Thanks Good questions 1. I bought all of them when they were first issued, hence no dealing costs on buying them. New issues have dried up as you can see. Sorry should have made clear, of course there are dealing costs if you sell. But you can keep them till the redemption date which ì do as rule for the income 2. No CGT on qualifying corporate bonds if you sell which is nice, but equally you cannot offset any losses if you sell at a loss. All bonds on the LSE ORB are qualifying corporate bonds. You don't really buy bonds for the capital gain though. It is just a nice feature you can make use of sometimes. monevator.com/bonds-and-bond-funds-taxed/3. Bond values do go up quite often, but then gradually go down as they apprach the redemption date. Clearly you can only bank the gain if you sell before the redemption date. As an example I have these Severn Trent (SVTL) 1.3% RPI Linked Notes 11/7/22. They were issued July 2012. They are currently up 22% so I have sold some. Anything rpi rated is popular right now, but I have national savings index linked certificates which are tax free so I have some inflation hedge elsewhere. I don't sell as a rule, I prefer to keep for income diversification. I did quite often buy more than ì wanted of many issues, and then sold half the amount shortly after they were allocated for a small profit. Bonds were very popular and went up a bit as soon as they were issued. Didn't make a lot, but easy money. Bonds have served me well. I have never tried investing with bonds via the wisealpha platform. That might be worth you looking at. Not investment advice.... be careful as bonds can fail just like all investments. I have had mixed results with p2p...
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Post by Ace on Mar 10, 2018 17:07:50 GMT
Hi all, this very interesting thread has prompted me to try and sort out my passive investment charges. I have a 6 figure sum directly invested in 5 L&G index tracking ISAs. They are currently in retail (R) class funds that charge OFCs in the order of 0.8% per year.
I realize that this is relatively expensive for a passive fund, so I am considering trying to transfer them to a broker, such as ii who I believe would charge a flat fee of £90 and OFCs of about 0.1%.
1) Can anyone help me understand the mechanics of this? If I open an ii ISA and arrange for them to transfer my L&G ISAs in, what actually happens?
2) On transfer would I end up with exactly the same number of units, or, is there some selling and rebuying involved with a possible change of price between?
3) Will I still have class R units, or will they be converted to a different class (which I think I need to reduce the cost)?
4) Or, am I completely wrong about all of this and I'm stuck with class R units and charges of 0.8ish percent?
I would appreciate any info you knowledgeable folks can give😊
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stevio
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Post by stevio on Mar 17, 2018 15:42:52 GMT
I have been analyzing ETFs, I was looking for:
- Fund or ETF - some preference for ETFs as they would be cheaper to hold with some brokers
- A World and USA tracker - some preference for S&P 500 for USA tracker due to lower costs to track this index
- Accumulation so no further costs to reinvest dividends
- Available in GBP to lower currency costs
- Preference for a larger number of holdings for more diversity
- Preference for larger size so not newly established, so less chance of ending and having to transfer elsewhere
- Trading history for at least 5yrs in line with sector
I picked a fund and ETF to allow take advantage of broker charging
For S&P 500 I found:
- ISHARES VII PLC CORE S&P 500 ETF - TER 0.07%
- HSBC AMERICAN INDEX CLASS C - ACCUMULATION FUND - TER 0.06%
For World tracker I found:
- Fidelity Index World (Class P) Accumulation Fund - TER 0.13%
- iShares Core MSCI World UCITS ETF - TER 0.20%
How do these sound?
Any lower TER for the sector and still in the requirements above?
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Post by charlata on Mar 17, 2018 17:08:52 GMT
I have been analyzing ETFs, I was looking for: - Fund or ETF - some preference for ETFs as they would be cheaper to hold with some brokers - A World and USA tracker - some preference for S&P 500 for USA tracker due to lower costs to track this index - Accumulation so no further costs to reinvest dividends - Available in GBP to lower currency costs - Preference for a larger number of holdings for more diversity - Preference for larger size so not newly established, so less chance of ending and having to transfer elsewhere - Trading history for at least 5yrs in line with sector I picked a fund and ETF to allow take advantage of broker charging For S&P 500 I found: - ISHARES VII PLC CORE S&P 500 ETF - TER 0.07% - HSBC AMERICAN INDEX CLASS C - ACCUMULATION FUND - TER 0.06% For World tracker I found: - Fidelity Index World (Class P) Accumulation Fund - TER 0.13% - iShares Core MSCI World UCITS ETF - TER 0.20% How do these sound? Any lower TER for the sector and still in the requirements above? Don't know the answer to your question, but the MSCI world is already 60% weighted to US stocks, so unless you're eally confident Chump is going to make America greater still, you probably don't need both trackers.
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hazellend
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Post by hazellend on Mar 17, 2018 18:12:13 GMT
One tip incase anybody is not aware.
Do not buy accumulation funds or ETFs in taxable accounts.
You still have to declare the dividends even though theyaccumulate and it is a mess to try and do your tax return.
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stevio
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Post by stevio on Mar 17, 2018 18:23:15 GMT
One tip incase anybody is not aware. Do lot buy accumulation funds or ETFs in taxable accounts. You still have to declare the dividends even though the accumulate and it is a mess to try and do your tax return. Do you by distribution funds and ETFs in taxable accounts then? Is that easier to work out?
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Nomad
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Post by Nomad on Mar 17, 2018 18:28:37 GMT
One tip incase anybody is not aware. Do lot buy accumulation funds or ETFs in taxable accounts. You still have to declare the dividends even though the accumulate and it is a mess to try and do your tax return. distribution funds and ETFs in taxable accounts then? Is that easier to work out? These discussions would be much easier to follow if folks checked what they typed! Do NOT buy accumulation funds ?? Do you BUY distribution funds ??
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hazellend
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Post by hazellend on Mar 17, 2018 18:38:53 GMT
One tip incase anybody is not aware. Do lot buy accumulation funds or ETFs in taxable accounts. You still have to declare the dividends even though the accumulate and it is a mess to try and do your tax return. Do you by distribution funds and ETFs in taxable accounts then? Is that easier to work out? Yes, in taxable accounts I would always buy distrubuting ETFs. Much easier to work out at year end. I also don't reinvest dividends in taxable accounts. I just lump sum round numbers so it is easier to keep track. Hargreaves Lansdowne does a reasonably good tax summary for its taxable account.
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Post by dan1 on Mar 17, 2018 20:56:46 GMT
I have been analyzing ETFs, I was looking for: - Fund or ETF - some preference for ETFs as they would be cheaper to hold with some brokers - A World and USA tracker - some preference for S&P 500 for USA tracker due to lower costs to track this index - Accumulation so no further costs to reinvest dividends - Available in GBP to lower currency costs - Preference for a larger number of holdings for more diversity - Preference for larger size so not newly established, so less chance of ending and having to transfer elsewhere - Trading history for at least 5yrs in line with sector I picked a fund and ETF to allow take advantage of broker charging For S&P 500 I found: - ISHARES VII PLC CORE S&P 500 ETF - TER 0.07% - HSBC AMERICAN INDEX CLASS C - ACCUMULATION FUND - TER 0.06% For World tracker I found: - Fidelity Index World (Class P) Accumulation Fund - TER 0.13% - iShares Core MSCI World UCITS ETF - TER 0.20% How do these sound? Any lower TER for the sector and still in the requirements above? On ETFs... World ETFs (sorted by lowest TER)... www.justetf.com/de-en/find-etf.html?assetClass=class-equity&groupField=none&sortField=ter®ion=World&sortOrder=ascUS ETFs... www.justetf.com/de-en/find-etf.html?assetClass=class-equity&groupField=none&sortField=ter&sortOrder=asc&country=USSome observations - be careful with synthetic ETFs because you're exposed to counterparty risk - as said, US contributes vast bulk of world indices - MSCI and FTSE are subtly different, Korea being the biggest difference - US trackers are very cheap, i.e. it may be cheaper to get US and World ex-US ETFs instead of World - World trackers may include emerging market (EM) exposure - World trackers expose you to currency risk unless hedged, the UK accounts for < 10%. Currency risk is generally uncompensated but unless you pay for hedging you have little choice if you want broad exposure (UK is heavy in financials and natural resources) - accumulation ETFs are relatively uncommon (I guess they'll cost more?) - distributions are likely to be in USD and your broker will convert to sterling for a fee (they're kind like that  ). AJ Bell charge 0.5% for this and I think HL charge 1.5%, a big difference. - try and investigate tracking error. Easier said than done but eyeballing a chart with the appropriate index overlaid should give you an idea. Worth taking a look at - HSBC MSCI World UCITS ETF USD - iShares Core S&P 500 UCITS ETF (Acc) <---- accumulation by the looks
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stevio
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Post by stevio on Mar 27, 2018 16:24:35 GMT
In terms of Passive Investing in a tracker, I have looked at a World tracker vs S&P 500 tracker
- The S&P 500 appears to have significantly outperformed the World trackers from about 2010
- World trackers consist of at least 50% US based companies
- World tracker top 10 holdings are all US based companies
- Any drop in the US market is likely to be mirrored in other world markets, so the extra 50% diversity doesn't seem worthwhile
- World trackers hold such small amounts of other markets (10% of emerging markets), that any upside is not really going to make a significant difference
- World trackers start from about 0.13% OCF (several are higher) were as S&P 500 trackers are half that at 0.07% OCF
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). AJ Bell charge 0.5% for this and I think HL charge 1.5%, a big difference.