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scubascuba3
Posted: 20 April 2017 17:03:50(UTC)
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I'm interested what people think is the best platform to use? I'm mostly invested in Funds for Investments, ISAs and SIPP. I used to be with Hargreaves Lansdown but their charge based on market value couldn't be justified. I moved to Interactive Investor who charge a flat fee of £20 per quarter plus £10 per trade. The £20 charge can be used for trades.

I'm happy with Interactive Investor but wondered if people agree or maybe there's something better out there.

I haven't reviewed recently how II SIPP drawdown charges compare to other companies. So any thoughts on that would be useful.
tom_b
Posted: 20 April 2017 18:37:16(UTC)
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I really like iWeb - for an ISA it's ultra cheap at £25 account opening and £5 per trade after that.

The website is very simple and very fast.

I've used Share Centre, HL and Selftrade in the past, wasn't happy with any of the sites or any of their prices.
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scubascuba3 on 21/04/2017(UTC)
xcity
Posted: 20 April 2017 19:07:57(UTC)
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tom_b;46014 wrote:
I really like iWeb - for an ISA it's ultra cheap at £25 account opening and £5 per trade after that.

But for a SIPP, it is £180pa (£50k+ - half if under) + £60 per plan to transfer in, £90 to transfer out, £180 pa for drawdown (up to age 75, £300 if over 75), £90 for assigning additional funds to drawdown, £90 per uncrystallised payment.
Expensive from my point of view but might be cheaper than HL if you have a large SIPP entirely in funds. Much dearer if you are in ITs & shares and are withdrawing money or have a smaller SIPP.
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scubascuba3 on 21/04/2017(UTC)
Sara G
Posted: 20 April 2017 20:01:27(UTC)
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Scuba, I did the same thing - switched to Interactive Investor due to the HL charges. I've had a few niggles with ii, but mostly OK. But the real disadvantages for me (in comparison to HL) are:

- No free fund dealing
- Fund deals can take days to execute
- Lump sumps into the SIPP have to be paid in by cheque

After a while I started to miss the HL experience so I have tried to achieve the best of both worlds by leaving the bulk of my SIPP holdings with ii and using HL for regular fund dealing and my ISA holdings (the ISA charge is capped at £45 for ITs and shares). I've definitely saved money that way, but it really depends on how frequently you trade as to which is the best for you.

I can't comment on the drawdown arrangements as I am not at that point yet.

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scubascuba3 on 21/04/2017(UTC)
xcity
Posted: 20 April 2017 20:21:51(UTC)
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Sara G;46018 wrote:
I can't comment on the drawdown arrangements as I am not at that point yet.

iii £170 + VAT for drawdown
UFPLS £40 + VAT per payment

Drawdown is the one area where HL are very low priced (free)
2 users thanked xcity for this post.
Andrew Smith 259 on 20/04/2017(UTC), scubascuba3 on 21/04/2017(UTC)
S Dobbo
Posted: 20 April 2017 21:01:07(UTC)
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Sara G;46018 wrote:

- Lump sumps into the SIPP have to be paid in by cheque



Under SIPP account forms, there's a large orange button 'Online Contribution Form' that opens in a new window and submits your form directly - no need to print and post. You then make a bacs payment to your SIPP bank account, the sort code and account number are on you account page.
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Joe Soap on 21/04/2017(UTC), scubascuba3 on 21/04/2017(UTC)
Andrew Smith 259
Posted: 20 April 2017 21:45:20(UTC)
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xcity;46019 wrote:
Sara G;46018 wrote:
I can't comment on the drawdown arrangements as I am not at that point yet.

iii £170 + VAT for drawdown
UFPLS £40 + VAT per payment

Drawdown is the one area where HL are very low priced (free)


I am not quite ready for Drawdown yet, but I had started thinking about what costs might be involved. I use HL for my SIPP and noticed that they do not appear to charge for drawing an income from investments within SIPP. Are there any other costs involved with drawing income/25% tax free lump sum from SIPP?

Just wondering what costs I might be facing when the time comes.
xcity
Posted: 20 April 2017 21:50:43(UTC)
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Andrew Smith 259;46023 wrote:
I use HL for my SIPP and noticed that they do not appear to charge for drawing an income from investments within SIPP. Are there any other costs involved with drawing income/25% tax free lump sum from SIPP?

Not as far as I know. I've not actually drawn anything yet so I cannot be certain, but I've found no sign of any charges.
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Andrew Smith 259 on 20/04/2017(UTC)
Freddy4Skin
Posted: 20 April 2017 21:56:53(UTC)
#12

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I'm in a similar position to other posters. To save on cost I transferred my SIPP and ISA accounts from HL to iii.

I would have to say the level of service I have received whilst with iii is very poor. From lost letters and forms, unanswered messages, none return of phone calls, slow and on one occasion incorrect payment of dividends to other peoples holdings appearing in my account to just general incompetence.

My investments with iii consists mainly ITs but I do also hold 5 oeics and a couple of ETFs. Given the size of my accounts the saving in cost with iii compared with HL do amount to several thousand pounds a year. Given also that I am 10 to 15 years away from withdrawing from either account the saving compounded over this time mean I have so far persisted with iii. The £20 per quarter for two deals suit my level of dealing. Apparently the cost drops to £5 per deal if you trade more than 10 times per month.

I guess in the end you get what you pay for or maybe I have just been unlucky but from my personal experience I would not recommend iii for the service.
xcity
Posted: 20 April 2017 22:18:32(UTC)
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Freddy4Skin;46026 wrote:
My investments with iii consists mainly ITs but I do also hold 5 oeics and a couple of ETFs. Given the size of my accounts the saving in cost with iii compared with HL do amount to several thousand pounds a year.

I would not recommend iii for the service.

Nothing to stop you splitting your SIPP and transferring the IT and ETF components to HL. That would limit your HL cost to £200 + dealing; more than now, but less than thousands and might reduce your aggravation with iii.
2 users thanked xcity for this post.
Freddy4Skin on 20/04/2017(UTC), scubascuba3 on 21/04/2017(UTC)
Freddy4Skin
Posted: 20 April 2017 22:54:46(UTC)
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xcity;46027 wrote:
Freddy4Skin;46026 wrote:
My investments with iii consists mainly ITs but I do also hold 5 oeics and a couple of ETFs. Given the size of my accounts the saving in cost with iii compared with HL do amount to several thousand pounds a year.

I would not recommend iii for the service.

Nothing to stop you splitting your SIPP and transferring the IT and ETF components to HL. That would limit your HL cost to £200 + dealing; more than now, but less than thousands and might reduce your aggravation with iii.


Thanks, I might look into that although if I understand you correctly it would still amount to an extra £200 per year. Also at the time of transfer I had more oeics so the saving with ii was obviously larger. As I near retirement I envision my oeic holdings will increase again.

Maybe I was a bit harsh with ii, most of the grief and believe me, it was serious grief over many months was when I collected up several personal pensions I had accrued over the years and collected them together into my SIPP with ii. That was a few years ago and is settled.

The sending of forms for SIPP contributions in the past was also less than smooth although this has finally been automated online but the contribution is still slow in appearing in my account compared with HL.
Joe Soap
Posted: 21 April 2017 06:45:44(UTC)
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S Dobbo;46021 wrote:
Sara G;46018 wrote:

- Lump sumps into the SIPP have to be paid in by cheque



Under SIPP account forms, there's a large orange button 'Online Contribution Form' that opens in a new window and submits your form directly - no need to print and post. You then make a bacs payment to your SIPP bank account, the sort code and account number are on you account page.

Many thanks, I was unaware of this, but I'm not contributing at the moment. Still useful to know.
Joe Soap
Posted: 21 April 2017 06:53:26(UTC)
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And I am yet another person saving more than GBP 120 every month by moving from HL to II. My experience of moving the SIPP and ISA is here in the retirement section for reference.

The point here is this - Nobody yet offers HL style experience AND II low costs. the GBP 20 per quarter fee at II suits me very well. IT just about covers my needs for buying/selling and helps to reduce the tendency to tinker too much.

The other side of the coin is that HL have the highest profit margin of any FTSE 100 company by a huge margin. IIRC their margin of profit from turnover is in excess of 80%. This means two things -

For the very good customer service and (the entirely free for use by anyone) website you are paying through the nose. It's quite clear there.

It means that there is lots of scope for a competitor to yet emerge in the market who can emulate the HL customer service level but at far lower profit margin.

It hasn't happened yet, but will it happen? I recall Questor in the Telegraph (I think it was) thought that it was unlikely that a serious challenger would emerge. I'm not so sure.
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scubascuba3 on 21/04/2017(UTC)
scubascuba3
Posted: 21 April 2017 07:05:02(UTC)
#15

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Freddy4Skin;46026 wrote:
I'm in a similar position to other posters. To save on cost I transferred my SIPP and ISA accounts from HL to iii.

I would have to say the level of service I have received whilst with iii is very poor. From lost letters and forms, unanswered messages, none return of phone calls, slow and on one occasion incorrect payment of dividends to other peoples holdings appearing in my account to just general incompetence.

My investments with iii consists mainly ITs but I do also hold 5 oeics and a couple of ETFs. Given the size of my accounts the saving in cost with iii compared with HL do amount to several thousand pounds a year. Given also that I am 10 to 15 years away from withdrawing from either account the saving compounded over this time mean I have so far persisted with iii. The £20 per quarter for two deals suit my level of dealing. Apparently the cost drops to £5 per deal if you trade more than 10 times per month.

I guess in the end you get what you pay for or maybe I have just been unlucky but from my personal experience I would not recommend iii for the service.

Yes when you pay £20 a quarter you can't expect them to have a top class customer service and apps. I watch transactions closely to make sure they are processed properly. If transferring in watch like a hawk, my investments were all transferred at no book cost, they seemed surprised i wanted it updated but i like them warts and all.

The amount of money you save by not paying HL/other MV % fees is well worth moving to iii
scubascuba3
Posted: 21 April 2017 07:07:04(UTC)
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xcity;46019 wrote:
Sara G;46018 wrote:
I can't comment on the drawdown arrangements as I am not at that point yet.

iii £170 + VAT for drawdown
UFPLS £40 + VAT per payment

Drawdown is the one area where HL are very low priced (free)


Is the £170 an annual charge? Assumes 12 drawdowns?
xcity
Posted: 21 April 2017 07:29:03(UTC)
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scubascuba3;46034 wrote:
Is the £170 an annual charge? Assumes 12 drawdowns?

Annual charge.
Andrew Hirst
Posted: 21 April 2017 07:53:45(UTC)
#17

Joined: 24/02/2017(UTC)
Posts: 2

Hi, it sounds as if most of you have portfolios worth several hundred thousand to be paying the level of fees indicated. As a relatively new small scale investor with a stocks & shares ISA and a handful of shares with HL, it would be good to know how they compare for people like me?
Mickey
Posted: 21 April 2017 08:19:30(UTC)
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We've been with a few online platforms after our original choice folded. We have found Hargreaves Lansdown to be the best of the lot for us. We keep costs low by only using IT's which are free to hold in the Fund & Share account and capped fees for ISA and SIPP's.

We originally used 'American Express Sharepeople' and if they returned to the market we may be tempted as they were very good, other than that we are very happy with the way HL deal with our accounts and respond to queries etc.
scubascuba3
Posted: 21 April 2017 09:03:30(UTC)
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Mickey;46044 wrote:
We've been with a few online platforms after our original choice folded. We have found Hargreaves Lansdown to be the best of the lot for us. We keep costs low by only using IT's which are free to hold in the Fund & Share account and capped fees for ISA and SIPP's.

We originally used 'American Express Sharepeople' and if they returned to the market we may be tempted as they were very good, other than that we are very happy with the way HL deal with our accounts and respond to queries etc.

I can't think of any logic why HL and others charge a % fee based on MV for Funds but not shares. Anyone worked it out? Fair enough Managers charging a management % fee but HL for doing nothing no that's not fair enough.
xcity
Posted: 21 April 2017 09:23:27(UTC)
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scubascuba3;46046 wrote:
Fair enough Managers charging a management % fee but HL for doing nothing no that's not fair enough.

So what about when they are doing something, but not charging?
A simple fee structure requires charging more for some things than they cost and then vice versa. Be glad that other platforms have fee structures that suit the way you want to invest; 'twasn't always so.
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