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Lowest cost investment platform for Stocks and Shares ISAs
citymoke
Posted: 30 April 2018 22:30:27(UTC)
#21

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Yes, that's the only downside that I can see with iWeb, ie. a very much reduced choice of investments available compared with other platforms.

I suppose one can liken it to Tesco verses the corner shop. Tesco being HL and the corner shop being iWeb (as far as choice of goods go).

The difference is that the larger of the two choices in this case is the more expensive!
Samual Saunders
Posted: 01 May 2018 06:42:34(UTC)
#22

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With all the comments on low charging platforms, the Hargreaves Lansdown platform, where I have been for many years with my Sipp, do offset initial charges, sometimes fully. They also provide loyalty bonuses, which all helps to negate part of their charges.

Their site must be one of the best for information and ease of use and all the information you may need is easy to obtain, but I would feel a lot happier if their ongoing charges at 0.45% to £250,000 were lowered above £150,000, with proportionate dealing charges in addition'
Sam
citymoke
Posted: 01 May 2018 15:25:16(UTC)
#23

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@Samual Saunders

Yes, HL do have this loyalty Bonus scheme, but mostly on 'bundled' investments. However, as I have chosen to convert any 'bundled' investments that I had with HL to 'unbundled' versions, I receive virtually none or very little cash back in the form of loyalty bonuses, so I'm paying virtually the full 0.45% annual platform charge that HL apply.

However, to offset this, 'unbundled' funds do have a slightly lower investment management charge associated with them. Swings and roundabouts really, but at the end of the day, iWeb still come out cheaper when you look at the bottom line of overall charges!

I agree though that HL's website and services are very good, which I suppose is what one is paying for, although with most of my investments now in a 'fit and forget' mode, I don't really need a top class service and/or website.
3 users thanked citymoke for this post.
william barnes on 01/05/2018(UTC), Samual Saunders on 01/05/2018(UTC), Alan M on 04/05/2018(UTC)
Samual Saunders
Posted: 01 May 2018 20:00:57(UTC)
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Thanks citysmoke.

Sorry, but you have lost me on bundled and unbundled funds. Have no idea what the difference is but will look it up just for increased knowledge.

I have obviously not been keeping up with messages as I see today that I have £1,711.71 in loyalty bonuses that is just sitting there. Must get on and invest it.
Sam
Tim D
Posted: 01 May 2018 20:43:13(UTC)
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Samual Saunders;61584 wrote:

Sorry, but you have lost me on bundled and unbundled funds. Have no idea what the difference is but will look it up just for increased knowledge.


This might help: https://www.sharesmagazi...derstanding-clean-funds

I've never understood why HL still offer the "bundled" ("non-clean") ones. I can only assume they're another way of somehow making even more money off anyone spendthrift enough to hold funds on their platform.
1 user thanked Tim D for this post.
Samual Saunders on 01/05/2018(UTC)
Samual Saunders
Posted: 01 May 2018 21:05:36(UTC)
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Thanks TimD and for the lead on to the information.

Having now read and reasonably understood what you were getting at, it seems that HL have it covered within charges.

All of the investments, made within the last week have a charge of 0 to 1% but offset by discount leaving a maximum of 0.67 on the JO Hambro down to 0.48% on others, so I believe they may be 'clean'.

Sam
colin overton
Posted: 02 May 2018 12:12:44(UTC)
#27

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Whenever these questions come up I always re-check my HL account platform charges and rebates.
Not all the rates mentioned in this thread are correct, neither are the comments about the loyalty bonuses. The "fantastically high" HL costs are I suppose a matter of judgment, but can at best be described as an exaggeration, in my view and for me.
As I previously stated my portfolio is similar in size to Harold's and is split between two accounts and also Equities, UTs and ITs. I have never found an investment I wanted to make that I couldn't buy thru' HL.
In one account my yearly fees are ~£75 and my loyalty bonuses ~£36, so about half and not "negligible" in my opinion. This is a mixture set of investments (~1/3rd of each) and all the UTs are unbundled i.e. the lowest cost available.
Another account cost me ~£220 last year with a rebate of ~£92, so around 42% of the costs, not really "negligible". This account has about 2/3rds in Equities/ITs and the rest in UTs. Again I always choose and check that these UTs are the lowest costs or equal to the lowest cost versions available.
I would therefore say that if HL has "fantastically high" costs their loyalty bonuses can't be described as "negligible" as these rebates, for me, amount to around 45% of the fees.
HL is not the lowest cost provider and will work well for some and not for others. I like their on-line share/IT trading as I almost always use their sell at a (high) target price feature and occasionally buy at a lower than current price feature. HL's admin is good and on the rare occasions you need to speak to someone they are generally well informed. Their on-line info and graphical comparison features are good for UK based investments, less so for equities quoted on foreign bourses. Every time I have queried or complained you get a prompt and complete answer.
I certainly can't explain their complicated fee structure but you will have to decide whether £170 net plus dealing costs is "fantastically high"?
If I used a "free" platform for what I consider to be a valuable portfolio I would be concerned that this service could stop or deteriorate with there being little comeback. I no longer wish to have more that one stocks and shares platform provider, so, for the moment, I will stay with HL.


2 users thanked colin overton for this post.
Luca Brasi on 02/05/2018(UTC), Samual Saunders on 02/05/2018(UTC)
citymoke
Posted: 02 May 2018 13:03:33(UTC)
#28

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To give some perspective to all this discussion about fees, the bottom line for me was that I was paying HL about £1,400 in fees per annum (after loyalty bonus deductions)

After I moved some of my investments from HL to iWeb (iWeb weren't able to accept ALL the ones that I wanted to move), I am now saving at least £300 per annum in fees.

Moving those investments away from HL was certainly worth it in my view!
3 users thanked citymoke for this post.
Tim D on 02/05/2018(UTC), Samual Saunders on 02/05/2018(UTC), Alan M on 04/05/2018(UTC)
Samual Saunders
Posted: 02 May 2018 13:40:57(UTC)
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Thanks citysmoke, I do understand.

Moving from HL is still something I am considering, although I have spent the last week reviewing all the holdings of my wife and myself, as well as the pension funds of my son-in-law and daughter who have a number of personal pensions each, obtaining new illustrations and fund information is so very easy with HL.

Obtaining present valuations and information from other providers can be a real pain and take easily twice as long and not be so informative, so I often look at HL info as well. Therefore, paying some extra for that should be OK, but when to pot grows to £250k and maximises the 0.45% it only reduces to 0.25% on the next lump of value. Overall, too much when I do all the work and they just administer for me.
Sam
1 user thanked Samual Saunders for this post.
Alan M on 04/05/2018(UTC)
colin overton
Posted: 03 May 2018 17:02:00(UTC)
#30

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Dear citymoke. If I was paying anyone £1400 net platform fees I would move - unless I had several million pounds invested. No one Platform/Broker/UT Supermarket is for everyone. The figures I quoted are correct and honest for me.

Dear Samual Saunders, Why not see if your accounts can be amalgamated or treated as "one" and get a lower % tariff? If you are still unhappy move. However I agree that you need to be sure that you are not just paying less for less services/poor service.

One last comment on value rather than just cost. I have for many years kept my own investment spreadsheets and updated them every week, month or several months - as appropriate. I few years ago I began to realise that this work was arguably double work - HL show you accurately the instantaneous value of your portfolio. Every 6 months you get a report you can down load and you still have access to these reports for many years. So I no long bother to update my spreadsheet so often. I do still keep a private note of divs by individual share and capital gains.

I see there are other current Citywire forums on platform costs and the health of platforms.

citymoke
Posted: 03 May 2018 17:55:27(UTC)
#31

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@Colin Overton - as I said previously, it was £1400 per annum, but not any more. I'm paying about £45 per month with HL for my income drawdown private pensions and about the same for my 4 remaining ISA investments. I was only able to manage to move 3 out of the 7 ISA investments originally held with HL as iWeb would not accept the rest!

I was thinking of moving my pensions to another platform to save even more, but that's something that I'll need to think about as the ISA movements were not straightforward due to incompetence mainly at iWeb's end. For something that should have taken a few weeks took about 3 months to complete. Both HL and iWeb were blaming each other for any hold ups!
citymoke
Posted: 03 May 2018 20:35:13(UTC)
#32

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Also, thinking about it, is it even possible to switch one's pension to another platform if one is already in drawdown? I looked at one or two platforms for any info on this, and the only comment on one of the platforms was 'contact us if you wish to consider doing that'.

If anyone out there has had experience of this, I (and probably others as well) would be interested to read your thoughts/comments (good or bad).
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