bigfoot12
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Post by bigfoot12 on Nov 28, 2018 8:41:14 GMT
jordan my feedback is similar to that of many above. I wouldn't consider your current product at all. I already have accounts with many of your platforms and I wouldn't want to be forced to invest further with those. Your new self select product is a little more interesting, but I don't understand how the 0.25% exit fee works. When is this charged? Even then I don't think that your product is aimed at me. Opening an Orca account is not much easier than opening the two additional accounts that I might want (that I don't currently have), and a 0.65% fee when some of these platforms pay interest of 3.1% seems a little high. Presumably for some platforms such as Octopus Choice you could reduce this fee as they pay fees to IFAs. I think I am very unlikely to open an account, if I was new to P2P I might. However, if you introduced an ISA that enabled me to invest in multiple platforms, and move between platforms without having to do and ISA transfer I might consider that. I would think long and hard about the fee, whether or not I want an extra layer of risk and complexity. I would want to be able to move money from one platform to another with no fee (as investments reach maturity) - so that if I no longer like one platform, or it has rates too low I can move money to another.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Nov 28, 2018 10:35:04 GMT
jordan my feedback is similar to that of many above. I wouldn't consider your current product at all. I already have accounts with many of your platforms and I wouldn't want to be forced to invest further with those. Your new self select product is a little more interesting, but I don't understand how the 0.25% exit fee works. When is this charged? Even then I don't think that your product is aimed at me. Opening an Orca account is not much easier than opening the two additional accounts that I might want (that I don't currently have), and a 0.65% fee when some of these platforms pay interest of 3.1% seems a little high. Presumably for some platforms such as Octopus Choice you could reduce this fee as they pay fees to IFAs. I think I am very unlikely to open an account, if I was new to P2P I might. However, if you introduced an ISA that enabled me to invest in multiple platforms, and move between platforms without having to do an ISA transfer I might consider that. I would think long and hard about the fee, whether or not I want an extra layer of risk and complexity. I would want to be able to move money from one platform to another with no fee (as investments reach maturity) - so that if I no longer like one platform, or it has rates too low I can move money to another. IMO this is the key message. Transferring an ISA takes a few weeks and some admin and on some platforms there is a transfer out fee.. Saving on these might justify a fee even for members of this forum.
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IFISAcava
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Post by IFISAcava on Nov 28, 2018 10:51:00 GMT
jordan my feedback is similar to that of many above. I wouldn't consider your current product at all. I already have accounts with many of your platforms and I wouldn't want to be forced to invest further with those. Your new self select product is a little more interesting, but I don't understand how the 0.25% exit fee works. When is this charged? Even then I don't think that your product is aimed at me. Opening an Orca account is not much easier than opening the two additional accounts that I might want (that I don't currently have), and a 0.65% fee when some of these platforms pay interest of 3.1% seems a little high. Presumably for some platforms such as Octopus Choice you could reduce this fee as they pay fees to IFAs. I think I am very unlikely to open an account, if I was new to P2P I might. However, if you introduced an ISA that enabled me to invest in multiple platforms, and move between platforms without having to do an ISA transfer I might consider that. I would think long and hard about the fee, whether or not I want an extra layer of risk and complexity. I would want to be able to move money from one platform to another with no fee (as investments reach maturity) - so that if I no longer like one platform, or it has rates too low I can move money to another. IMO this is the key message. Transferring an ISA takes a few weeks* and some admin and on some platforms there is a transfer out fee.. Saving on these might justify a fee even for members of this forum. *or with some platforms a lot longer (see my earlier posts). I agree, this would be a key advantage. The flexibility, lack of exit fee and avoidance of cash drag could justify the additional platform fee for many investors.
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Post by jordan on Nov 28, 2018 12:41:30 GMT
jordan - I've not been following this thread to be honest but I saw mention of a 0.65% fee. One thought springs to mind, and I guess this won't be popular (rightly so), but is there scope to gather your fee directly from the platforms? Essentially, the sort of deals that were done pre-RDR in the fund management industry. It would be funded from the platforms marketing budgets, i.e. along with advertising, direct marketing, refer a friend, affiliates etc so the end user (investor) would have access to the platforms at the same rates as going direct. Couple that with self-select in an IFISA wrapper and you'd have a significant advantage. I've no idea of whether RDR applies to business' like yours? And I'm not sure of the ethics of hidden kick-backs, or more precisely the behaviour it encourages but let's be honest, the industry hasn't covered itself in glory recently! We do receive a fee from the underlying platforms for referring clients and no we're not impacted by RDR (as far as I'm aware) - we're not in the business of giving advice, but it's a good point to raise; how these commercial structures could be impacted as regulation evolves etc. I've mentioned a couple of times on this thread that the user fee (0.65%) seems to be a major sticking point, which is very helpful to understand. Certainly something we'll take back and evaluate. Appreciate you taking the time to feedback. Much appreciated.
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Post by jordan on Nov 28, 2018 12:43:10 GMT
jordan my feedback is similar to that of many above. I wouldn't consider your current product at all. I already have accounts with many of your platforms and I wouldn't want to be forced to invest further with those. Your new self select product is a little more interesting, but I don't understand how the 0.25% exit fee works. When is this charged? Even then I don't think that your product is aimed at me. Opening an Orca account is not much easier than opening the two additional accounts that I might want (that I don't currently have), and a 0.65% fee when some of these platforms pay interest of 3.1% seems a little high. Presumably for some platforms such as Octopus Choice you could reduce this fee as they pay fees to IFAs. I think I am very unlikely to open an account, if I was new to P2P I might. However, if you introduced an ISA that enabled me to invest in multiple platforms, and move between platforms without having to do an ISA transfer I might consider that. I would think long and hard about the fee, whether or not I want an extra layer of risk and complexity. I would want to be able to move money from one platform to another with no fee (as investments reach maturity) - so that if I no longer like one platform, or it has rates too low I can move money to another. IMO this is the key message. Transferring an ISA takes a few weeks and some admin and on some platforms there is a transfer out fee.. Saving on these might justify a fee even for members of this forum. Great, this is clear and concise, so thank you. Will feedback to the team. IFISAcava same to you; some positive trends emerging - balanced with some concerns (fee), which is even more useful.
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ton27
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Post by ton27 on Nov 30, 2018 10:12:46 GMT
I invest directly in quite a few platforms but could see some benefit in using Orca for further diversification. For me the fee is too high for Orca to be attractive for large sums. Is the fee tax deductible - if not that would be another disadvantage? The offer would be improved if there was some sort of assessment of platforms.
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Post by jordan on Nov 30, 2018 13:57:05 GMT
I invest directly in quite a few platforms but could see some benefit in using Orca for further diversification. For me the fee is too high for Orca to be attractive for large sums. Is the fee tax deductible - if not that would be another disadvantage? The offer would be improved if there was some sort of assessment of platforms. Thanks for your feedback ton27, appreciate it. Do you have any platforms in mind that you'd like to see aggregated by Orca? As you rightly point out, you already hold some of the platforms we offer exposure to. Is the fee tax deductible - if not that would be another disadvantage? I'll need to double check that and gain clarity on the tax implications on the fee once we launch the ISA. The offer would be improved if there was some sort of assessment of platforms.Yes, absolutely. This is something we'll explore, seeking to make the due diligence we conduct on providers more readily available.
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Post by jordan on Nov 30, 2018 14:13:29 GMT
jordan my feedback is similar to that of many above. I wouldn't consider your current product at all. I already have accounts with many of your platforms and I wouldn't want to be forced to invest further with those. Your new self select product is a little more interesting, but I don't understand how the 0.25% exit fee works. When is this charged? Even then I don't think that your product is aimed at me. Opening an Orca account is not much easier than opening the two additional accounts that I might want (that I don't currently have), and a 0.65% fee when some of these platforms pay interest of 3.1% seems a little high. Presumably for some platforms such as Octopus Choice you could reduce this fee as they pay fees to IFAs. I think I am very unlikely to open an account, if I was new to P2P I might. However, if you introduced an ISA that enabled me to invest in multiple platforms, and move between platforms without having to do and ISA transfer I might consider that. I would think long and hard about the fee, whether or not I want an extra layer of risk and complexity. I would want to be able to move money from one platform to another with no fee (as investments reach maturity) - so that if I no longer like one platform, or it has rates too low I can move money to another. Hi bigfoot12 , apologies I thought I'd come back to you. very fair, I can understand why it's not of value currently, and I do appreciate your consideration of our self-select product. The 0.25% exit fee is admin fee we charge for selling loans early on the underlying platforms, perhaps this needs to be explained better in our web literature. Thanks for flagging. Totally understand that the product is not suited to you in its current state, as you say though, perhaps more suitable when we launch the ISA. Great feedback though, and certainly food for thought regards the fee and ability to switch your allocation from one platform to another - something we'll explore.
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aju
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Post by aju on Nov 30, 2018 16:10:56 GMT
Hi jordan, I'm slightly confused on the 0.25% exit fee discussed above especially as I've never sold my way out of any of my loans so far so very little experience. Would I be right in thinking that this fee is in addition to the exit fees of any given platform. So in the example given "Lending Crowd" has a sellout fee of 1% so if I'm right to sell out on LC it would really be 1.25%. Do the Interest rates against each platform change from the investment screen, i'm guessing they do, so the ORCA Portfolio screen might be more useful if each live prospect had my projected/actual interest rate against it too or at least the indicative rates. Also on the portfolio screen it would be nice to have the number of loans that make up a given prospect value. Currently Zopa would diversify the £2000 loans into a 100 £20 loans, however, if you lent £1999 it could be 199 £10 loans or with lower value loans it could be more than 200 loans. On the LC sub screen it says no more than 5% to any one loan, is this platform based or orca based. Zopa has a similar setup but as I said above I can get a better loan spread by setting £1999 as Zopa uses min of £10 and uses the lent amount to control the diversification. Is Orca using platform rules or managing this itself. If so would orca lend £1999 to Zopa in £20 blocks with 1 at £19 or would it apply what I lend and let the platform control the lending. Hope these comments will help and hopefully I'm not repeating what others have said. |
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ton27
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Post by ton27 on Dec 1, 2018 14:22:43 GMT
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ton27
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Post by ton27 on Dec 1, 2018 14:27:38 GMT
jordan What I was trying to ask was, is the fee of .65% allowable for tax outside an ISA (it does not apply in an ISA as it is all tax exempt)
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Post by jordan on Dec 3, 2018 12:15:14 GMT
Hi jordan , I'm slightly confused on the 0.25% exit fee discussed above especially as I've never sold my way out of any of my loans so far so very little experience. Would I be right in thinking that this fee is in addition to the exit fees of any given platform. So in the example given "Lending Crowd" has a sellout fee of 1% so if I'm right to sell out on LC it would really be 1.25%. Do the Interest rates against each platform change from the investment screen, i'm guessing they do, so the ORCA Portfolio screen might be more useful if each live prospect had my projected/actual interest rate against it too or at least the indicative rates. Also on the portfolio screen it would be nice to have the number of loans that make up a given prospect value. Currently Zopa would diversify the £2000 loans into a 100 £20 loans, however, if you lent £1999 it could be 199 £10 loans or with lower value loans it could be more than 200 loans. On the LC sub screen it says no more than 5% to any one loan, is this platform based or orca based. Zopa has a similar setup but as I said above I can get a better loan spread by setting £1999 as Zopa uses min of £10 and uses the lent amount to control the diversification. Is Orca using platform rules or managing this itself. If so would orca lend £1999 to Zopa in £20 blocks with 1 at £19 or would it apply what I lend and let the platform control the lending. Hope these comments will help and hopefully I'm not repeating what others have said. You are correct that the 0.25% Orca fee is in addition to the sellout fees offered by the underlying platforms (for exiting loans early). E.g, we'd charge 0.25% on the total value you withdraw; the fee the underlying platform charges will apply to the amount being withdrawn from them, specifically. Do the Interest rates against each platform change from the investment screen, i'm guessing they do, so the ORCA Portfolio screen might be more useful if each live prospect had my projected/actual interest rate against it too or at least the indicative rates.
Good feedback. We're looking into how we reflect the rate earned on your Orca portfolio and how this is displayed on the Orca Dashboard (portfolio screen). Presently, we display an 'indicative return' which is a weighted blend of the advertised rates offered by the platforms, but am aware the actual return may be different. This would be a design/user experience concern I feel, so will relay back to the team. In terms of your other comments, we use platform rules, and don't decide the level of diversification at the underlying platform. The platforms control the lending. We set the % allocated to each provider within the current 'Model' portfolio, however, you would be able to control the % allocation to each platform with the 'Self Select' portfolio builder. As ever, very useful comments, so thank you aju
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Post by jordan on Dec 3, 2018 13:59:36 GMT
jordan What I was trying to ask was, is the fee of .65% allowable for tax outside an ISA (it does not apply in an ISA as it is all tax exempt) Ah OK I see, my apologies, misread slightly. The tax treatment will depend on your individual circumstances. The return we offer is net of our fees, but we could provide statements to illustrate the effects of gross and net and will look to do so in time.
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Post by jordan on Dec 17, 2018 15:08:44 GMT
Hi folks, Thanks to everyone for their feedback in this thread, it's extremely helpful. If you're interested in finding out more about the ISA and Self-Select portfolio builder, click below and join our Wait List! Wait List |
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aju
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Post by aju on Dec 17, 2018 15:17:56 GMT
Hi folks, Thanks to everyone for their feedback in this thread, it's extremely helpful. If you're interested in finding out more about the ISA and Self-Select portfolio builder, click below and join our Wait List! Wait ListNot sure I would be advertising the rates on Zopa as correct at the time I linked through, they seem a bit on the high side relevant to what mine are posting at the moment (Core is 4% and Plus is 4.8% projected, I'm expecting actuals to not be that good though depending on my luck!). Just a thought. I can;t speak for other offering on the list. That said, I'd not really be interested anyway so it won't affect me but if I were interested I'd question whether I'd still be interested if the info is not really valid. I'm guessing it's a snapshot but not really going to work if it's not very accurate, I feel. Good Luck anyway Jordan.
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