stevio
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Post by stevio on Feb 23, 2018 17:58:05 GMT
I have been looking into costs, particularly % fee brokers vs fixed fee brokers I am looking for multiple purposes: - S&S ISA - Non ISA Trading account - SIPP - Pension Administrator/Trading Account (eg for a SSAS) - Company I have looked on LemonFool and here monevator.com/compare-the-brokers/ I have a H&L account and back when they restructured their fees, I made a complaint (prompted by the success of many on the MSE board) and they agreed to reduce the annual fee to 0.25% on upto 1M. This then seems to match the lowest % fee brokers I can find It seems iWeb might have the lowest fixed fee at £25 one off setup and £5 per trade With a fixed fee broker I am not sure how many trades I should estimate making? For 2 trades (assuming a buy and sell) is 2x£5=£10 with iWeb (ignoring setup) which is what I would pay on a portfolio of £4000 at H&L (£4000x0.25%=£10) Are there others I should consider? Where do you do yours? |
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stevio
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Post by stevio on Feb 24, 2018 18:31:11 GMT
Looking into this further
Iweb for me seems to generally the cheapest at £25 to open and then £5 a trade
I have also looked at some other slightly less mainstream options:
- Degiro - around £2 trading costs for shares
- Trading 212 - similar costs to Degiro, but 10x free trades per month of up to £10k each trade (which would be enough for me)
- Plus 500 - no trading fees, seems to some how make money from the spread and deposit/withdrawal fees
How do any of these sound or have you used any?
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jlend
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Post by jlend on Mar 7, 2018 21:44:54 GMT
Looking into this further Iweb for me seems to generally the cheapest at £25 to open and then £5 a trade I have also looked at some other slightly less mainstream options: - Degiro - around £2 trading costs for shares - Trading 212 - similar costs to Degiro, but 10x free trades per month of up to £10k each trade (which would be enough for me) - Plus 500 - no trading fees, seems to some how make money from the spread and deposit/withdrawal fees How do any of these sound or have you used any? I also got the reduction to 0.25% as soon as they increased their fees when I said I was leaving. My main reason for staying is... I hold most of the corporate bonds that have ever been issued on the LSE ORB market having purchased them at issue, and HL have been good handling those and corporate actions so I have stayed with them. The holding fee for bonds is less I should say and buying them at issue cost nothing. New issues have dried up....
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Post by dan1 on Mar 12, 2018 10:10:04 GMT
AJ Bell Youinvest is preparing for their own IPO targeted for end 2018 beginning 2019... www.ajbell.co.uk/news/aj-bell-prepares-ipo-exclusive-customer-elementI'm not sure what impact this would have on their offerings and in particular fees but my inner pessimist says a fee hike but I've no evidence whatsoever for this statement! Edit: as per P2P you should at least consider the long term health of your chosen platform. |
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stevio
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Post by stevio on Mar 19, 2018 15:55:23 GMT
I am encountering TRANSACTION FEES from some brokers in the quote of the cost, which is not included with other brokers - is this a charge for a fund/ETF specific to that platform?
I am looking to buy GBP versions of ETFs, but I am still quoted a FX fee - how does that work?
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james100
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Post by james100 on Mar 19, 2018 16:29:14 GMT
I am encountering TRANSACTION FEES from some brokers in the quote of the cost, which is not included with other brokers - is this a charge for a fund/ETF specific to that platform? I am looking to buy GBP versions of ETFs, but I am still quoted a FX fee - how does that work? Can you say which ETF? It sounds like you are purchasing a global or partially non-UK ETF which is listed in USD but available to purchase in GBP. Some are also listed in multi-currencies same ISIN e.g. VWRL (buy in GBP) or VWRD (buy in USD). If you try to buy VWRD version with GBP you'll be charged forex spread and additional commission fee (for example). Btw most global ETFs will be distributing in USD even if they are listing in GBP (like both VWRL and VWRD) and if you're in a GBP-only account (inc all ISAs) then whatever broker forex commission charges exist will be applied on dividend day too*. Broker forex commissions and spreads vary - for commisssions IIRC iweb is 1.5% flat, x-o was "undefined and variable", ii is 1.5% - 0.25% sliding scale so you may well get different rates between different brokers. *Edit: you can get around that, dependent on your numbers, by using a multi-currency account, e.g. accepting VWRL/D dividends in USD and reinvesting that back into VWRD but only GBP allowed in ISAs. Am also not averse to accumulation funds btw and find reporting straightforward.
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mary
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Post by mary on Mar 19, 2018 17:27:31 GMT
iWeb is particularly cost effective for low volume traders and for buying and holding funds - there is zero platform holding charge vs 0.45% at HL and even 0.15% at Vanguard (which is restricted to its own funds).
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Post by dan1 on Mar 19, 2018 17:48:28 GMT
I am encountering TRANSACTION FEES from some brokers in the quote of the cost, which is not included with other brokers - is this a charge for a fund/ETF specific to that platform? I am looking to buy GBP versions of ETFs, but I am still quoted a FX fee - how does that work? Can you say which ETF? It sounds like you are purchasing a global or partially non-UK ETF which is listed in USD but available to purchase in GBP. Some are also listed in multi-currencies same ISIN e.g. VWRL (buy in GBP) or VWRD (buy in USD). If you try to buy VWRD version with GBP you'll be charged forex spread and additional commission fee (for example). Btw most global ETFs will be distributing in USD even if they are listing in GBP (like both VWRL and VWRD) and if you're in a GBP-only account (inc all ISAs) then whatever broker forex commission charges exist will be applied on dividend day too. Broker forex commissions and spreads vary - for commisssions IIRC iweb is 1.5% flat, x-o was "undefined and variable", ii is 1.5% - 0.25% sliding scale so you may well get different rates between different brokers. I had it in writing from x-o.co.uk "A foreign exchange charge of 1.5% will be included in the rate used to convert the value of your deal to sterling. This rate is set at 8am each day."
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stevio
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Post by stevio on Mar 19, 2018 19:35:31 GMT
I am encountering TRANSACTION FEES from some brokers in the quote of the cost, which is not included with other brokers - is this a charge for a fund/ETF specific to that platform? I am looking to buy GBP versions of ETFs, but I am still quoted a FX fee - how does that work? Can you say which ETF? It sounds like you are purchasing a global or partially non-UK ETF which is listed in USD but available to purchase in GBP. Some are also listed in multi-currencies same ISIN e.g. VWRL (buy in GBP) or VWRD (buy in USD). If you try to buy VWRD version with GBP you'll be charged forex spread and additional commission fee (for example). Btw most global ETFs will be distributing in USD even if they are listing in GBP (like both VWRL and VWRD) and if you're in a GBP-only account (inc all ISAs) then whatever broker forex commission charges exist will be applied on dividend day too*. Broker forex commissions and spreads vary - for commisssions IIRC iweb is 1.5% flat, x-o was "undefined and variable", ii is 1.5% - 0.25% sliding scale so you may well get different rates between different brokers. *Edit: you can get around that, dependent on your numbers, by using a multi-currency account, e.g. accepting VWRL/D dividends in USD and reinvesting that back into VWRD but only GBP allowed in ISAs. Am also not averse to accumulation funds btw and find reporting straightforward. I had to go through them all again, so its taken me a while 1) Transaction Costs/fees - Shown on Youinvest and H&L. - H&L define these as "The explicit cost the manager incurs whilst dealing......". - Adds 0.1-0.2% to effectively the OCF - not too much of a problem, but should be in OCF - Examples: HSBC AMERICAN INDEX CLASS C - ACCUMULATION (http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-american-index-class-c-accumulation/costs) FIDELITY INDEX US CLASS P - ACCUMULATION (http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/f/fidelity-index-us-class-p-accumulation/costs) SWDA (http://www.hl.co.uk/shares/shares-search-results/i/ishares-iii-plc-core-msci-world-acc/costs) 2) FX charge - Shown on Youinvest when go to deal and review charges - 1% - enough to consider holding funds instead - Examples: CSP1, VUSA, HMWO But not on IUSA, SWDA
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james100
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Post by james100 on Mar 20, 2018 11:43:35 GMT
stevioRight, your 1st question seems straightforward. This is an existing additional cost which is applied irrespective of brokerage but is widely unreported by fund managers and/or platforms (even though as you rightly say it should be classified as part of the ongoing charges fee). It's basically the portfolio balancing costs for maintaining the advertised ETF profile (so potentially flows with changing market caps, forex swings etc and for this reason can be variable). MiFID II is making it compulsory to report these and some platforms are putting in estimates. Whether they do or not, the cost is still there and is being deducted from the overall return. 2nd question I can't answer unfortunately. I don't hold these ETFs and am not with YouInvest so can't see the screen. Best guess: 1% is general forex being applied randomly to non GBP funds, but if so, it should not be applied additionally to VUSA unless they have it linked to the EUR or CHF instead of the GBP one (all share the same ISIN inc USD variant VUSD). I am no expert on this point but I've experienced broker-error in this area before when I've had stock magically morph into a different variant...they are only (mostly) human so it's worth phoning to double-check the situation with individual ETFs.
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stevio
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Post by stevio on Mar 20, 2018 12:43:18 GMT
stevio Right, your 1st question seems straightforward. This is an existing additional cost which is applied irrespective of brokerage but is widely unreported by fund managers and/or platforms (even though as you rightly say it should be classified as part of the ongoing charges fee). It's basically the portfolio balancing costs for maintaining the advertised ETF profile (so potentially flows with changing market caps, forex swings etc and for this reason can be variable). MiFID II is making it compulsory to report these and some platforms are putting in estimates. Whether they do or not, the cost is still there and is being deducted from the overall return. 2nd question I can't answer unfortunately. I don't hold these ETFs and am not with YouInvest so can't see the screen. Best guess: 1% is general forex being applied randomly to non GBP funds, but if so, it should not be applied additionally to VUSA unless they have it linked to the EUR or CHF instead of the GBP one (all share the same ISIN inc USD variant VUSD). I am no expert on this point but I've experienced broker-error in this area before when I've had stock magically morph into a different variant...they are only (mostly) human so it's worth phoning to double-check the situation with individual ETFs. Thanks Yes, I think it is just a relatively hidden cost I have to bare in mind Although the "view costs" prior to getting a quote, includes FX charge, the quote itself doesn't. I couldn't go any further without accepting the quote. So I think it might be an error in the cost calculation. I have emailed them and will see
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stevio
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Post by stevio on Mar 20, 2018 18:25:24 GMT
stevio Right, your 1st question seems straightforward. This is an existing additional cost which is applied irrespective of brokerage but is widely unreported by fund managers and/or platforms (even though as you rightly say it should be classified as part of the ongoing charges fee). It's basically the portfolio balancing costs for maintaining the advertised ETF profile (so potentially flows with changing market caps, forex swings etc and for this reason can be variable). MiFID II is making it compulsory to report these and some platforms are putting in estimates. Whether they do or not, the cost is still there and is being deducted from the overall return. 2nd question I can't answer unfortunately. I don't hold these ETFs and am not with YouInvest so can't see the screen. Best guess: 1% is general forex being applied randomly to non GBP funds, but if so, it should not be applied additionally to VUSA unless they have it linked to the EUR or CHF instead of the GBP one (all share the same ISIN inc USD variant VUSD). I am no expert on this point but I've experienced broker-error in this area before when I've had stock magically morph into a different variant...they are only (mostly) human so it's worth phoning to double-check the situation with individual ETFs. Reply This appears to be an error sir - I can confirm that you only pay FX fees when you are trading on an overseas exchanges in non GBP- denominated currencies. In turn, you are not charged an FX fee for CSP1. Thank you for bringing this to our attention.
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Post by dan1 on Mar 29, 2018 11:08:10 GMT
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stevio
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Post by stevio on Mar 29, 2018 15:42:26 GMT
I am considering using www.x-o.co.uk for a SIPP, as the Annual Fee and Transfer Fees are refunded by Jarvis and x-o dealing fees are one of the lowest. The SIPP administrator is Gaudi and the x-o platform supplied by Jarvis Can anyone help me in analyzing the financial health of both Jarvis and Gaudi? I am not great at interpreting accounts, so any great accountants or anyone capable in this area, would be appreciated elliotnI am not so concerned with Jarvis, but any information would be useful. Being considerably smaller, I would appreciate any analysis of Gaudi JARVIS INVESTMENT MANAGEMENT LIMITED beta.companieshouse.gov.uk/company/01844601Jarvis Securities Plc (AIM listed company) beta.companieshouse.gov.uk/company/05107012Gaudi beta.companieshouse.gov.uk/company/06638918 |
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macq
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Post by macq on Mar 29, 2018 16:31:06 GMT
I am considering using www.x-o.co.uk for a SIPP, as the Annual Fee and Transfer Fees are refunded by Jarvis and x-o dealing fees are one of the lowest. The SIPP administrator is Gaudi and the x-o platform supplied by Jarvis Can anyone help me in analyzing the financial health of both Jarvis and Gaudi? I am not great at interpreting accounts, so any great accountants or anyone capable in this area, would be appreciated elliotn I am not so concerned with Jarvis, but any information would be useful. Being considerably smaller, I would appreciate any analysis of Gaudi JARVIS INVESTMENT MANAGEMENT LIMITED beta.companieshouse.gov.uk/company/01844601Jarvis Securities Plc (AIM listed company) beta.companieshouse.gov.uk/company/05107012Gaudi beta.companieshouse.gov.uk/company/06638918 As you are checking platform finances and i assume compensation for platforms - have seen you mention ETF's not sure if you know but the compensation per fund can also depend on where they are domiciled i.e UK or Ireland
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