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Lowest cost investment platform for Stocks and Shares ISAs
CGT/Dividend Tax Obsessive
Posted: 25 April 2018 14:36:08(UTC)
#1

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Hi all,

I’m using Charles Stanley Direct as my investment platform for my S&S ISAs – they charge 0.15% a year. This seems a bit strange to me, as I’m investing in funds that have OCFs such as 0.06%.

My investment plan goes as far as paying passive trackers and sitting on them, probably for a few decades, nothing fancier than that.

Is there an investment platform worth looking at transferring my ISAs to?

Thanks!
Tom Bards
Posted: 25 April 2018 14:45:45(UTC)
#2

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CGT/Dividend Tax Obsessive;61235 wrote:
Hi all,

I’m using Charles Stanley Direct as my investment platform for my S&S ISAs – they charge 0.15% a year. This seems a bit strange to me, as I’m investing in funds that have OCFs such as 0.06%.

My investment plan goes as far as paying passive trackers and sitting on them, probably for a few decades, nothing fancier than that.

Is there an investment platform worth looking at transferring my ISAs to?

Thanks!



Why is that strange? There is no correlation between OCF and platform charges. The platform charge is the charge of holding the funds on the platform, it is nothing to do with the OCF.

0.15% is actually very cheap in comparison to other platforms that charge percentage fees. Vanguard charges 0.15%. I would say that is low cost.

If you are just holding trackers you could consider transferring to ETF's and holding them on Hargreaves Lansdown which only charges max £45 on ETF's holdings regardless of size.

EDIT: If your portfolio is over £250,000 and it is just index trackers you could also move it over to Vanguard. There is no platform fee over £250,000.
2 users thanked Tom Bards for this post.
Law Man on 25/04/2018(UTC), David 111 on 28/04/2018(UTC)
Tim D
Posted: 25 April 2018 14:46:17(UTC)
#3

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The broker/platform takes a fee too for their trouble of looking after your holdings.

Nice list of platform fees at http://monevator.com/com...heapest-online-brokers/

Once your pot gets big enough, it's pretty much guaranteed that you'd be better off on a platform charging "flat fee" or a capped percentage.

For example, a flat £120 fee per year for an ISA would be just 0.024% of a £500K ISA.
2 users thanked Tim D for this post.
CGT/Dividend Tax Obsessive on 25/04/2018(UTC), Peter59 on 25/04/2018(UTC)
Alan Selwood
Posted: 25 April 2018 14:52:51(UTC)
#4

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X-O (not for funds) has no annual platform charge for dealing accounts or ISA accounts, and each deal is a flat £5.95
5 users thanked Alan Selwood for this post.
Tony Peterson on 25/04/2018(UTC), Christopher Propert on 25/04/2018(UTC), Tim D on 27/04/2018(UTC), kWIKSAVE on 27/04/2018(UTC), john_r on 02/05/2018(UTC)
Julianw
Posted: 25 April 2018 16:51:10(UTC)
#5

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X-O for UK shares, investment trusts and ETFs.

Had an investment account with them for years, no issue.

Probably the cheapest for SIPP also if you stick to only UK shares and ETFs.
Altogether now
Posted: 25 April 2018 16:57:55(UTC)
#6

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Doesn't get much cheaper than iWeb as long as their account opening fee is on offer.
2 users thanked Altogether now for this post.
Franco on 25/04/2018(UTC), william barnes on 25/04/2018(UTC)
Harold Stephens
Posted: 25 April 2018 18:11:11(UTC)
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I invest in an ISA through Chelsea Financial Services and there are 3 separate annual fees for up to £250,000 invested:

(i) a fund management fee (typically0.75% of your investment)

(ii) a platform fee of 0.2% charged by Cofunds

(iii) a service fee to Chelsea of 0.4%

Chelsea's website is very poor although improvements are planned. Would I be better moving to a different d-i-y platform to take advantage of lower charges? If so can you recommend one which would allow free switching throughout the year?
william barnes
Posted: 25 April 2018 18:45:30(UTC)
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Iweb
Harold Stephens
Posted: 27 April 2018 05:19:58(UTC)
#10

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CGT/Dividend Tax Obsessive;61235 wrote:
Hi all,

I’m using Charles Stanley Direct as my investment platform for my S&S ISAs – they charge 0.15% a year. This seems a bit strange to me, as I’m investing in funds that have OCFs such as 0.06%.

My investment plan goes as far as paying passive trackers and sitting on them, probably for a few decades, nothing fancier than that.

Is there an investment platform worth looking at transferring my ISAs to?

Thanks!

Joe 90
Posted: 27 April 2018 06:42:06(UTC)
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I moved from Charles Stanley as they were charging 0.45% and whilst this is ok for small portfolios it gets expensive once the value gets significant. Switched to iWeb. No problems (so far).
1 user thanked Joe 90 for this post.
william barnes on 27/04/2018(UTC)
chubby bunny
Posted: 27 April 2018 11:40:57(UTC)
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Joe 90;61322 wrote:
I moved from Charles Stanley as they were charging 0.45% and whilst this is ok for small portfolios it gets expensive once the value gets significant. Switched to iWeb. No problems (so far).


I thought Charles Stanley only charged 0.25%?
chubby bunny
Posted: 27 April 2018 11:48:53(UTC)
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Harold Stephens;61273 wrote:
I invest in an ISA through Chelsea Financial Services and there are 3 separate annual fees for up to £250,000 invested:

(i) a fund management fee (typically0.75% of your investment)

(ii) a platform fee of 0.2% charged by Cofunds

(iii) a service fee to Chelsea of 0.4%

Chelsea's website is very poor although improvements are planned. Would I be better moving to a different d-i-y platform to take advantage of lower charges? If so can you recommend one which would allow free switching throughout the year?


Yeah, you could probably cut your platform fees by half or more by moving.

Have a look at:

http://www.comparefundplatforms.com/compare.aspx
http://monevator.com/com...heapest-online-brokers/
https://drive.google.com...s7VqzO5tyYgifOZd0Lr/view
1 user thanked chubby bunny for this post.
Harold Stephens on 28/04/2018(UTC)
Bellabeck
Posted: 27 April 2018 11:52:21(UTC)
#13

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Charles Stanley Direct charge 0.25%. I moved my son's ISA to Interactive Investor once over £50K, where his pension is also. Fine for LTBH.

Fixed fee platforms start to make sense once holdings go above £50K mark although I know a lot of investors who post on here go with Hargreaves Lansdowne so long as they don't trade shares or ETFs which trade like shares.
Chris Howland
Posted: 27 April 2018 17:25:10(UTC)
#14

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Halifax Sharedealing charge £12.50 a year for an ISA account.

Dealing is £12.50, with monthly low cost trade windows where dealing is reduced to £3.95.

It works for me!

Chris
1 user thanked Chris Howland for this post.
Keith Cobby on 27/04/2018(UTC)
colin overton
Posted: 28 April 2018 10:35:08(UTC)
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Dear Harold, I also used to use Chelsea-Cofunds as a "2nd supplier" to HL. You are correct their admin and web site are not the best, and they are expense. When platform costs became more visible I moved everything to HL, which at 0.25% in your case, are not the cheapest but are perhaps the best (?). I have not regretted my decision.
However I would sat that the Chelsea quarterly (?) news magazine is excellent e.g. their "Regelation Zone" is a "must read" for me. I only wish someone would construct an on-going "worst IT" list as Chelsea do for UTs.
1 user thanked colin overton for this post.
Harold Stephens on 28/04/2018(UTC)
Aminatidi
Posted: 28 April 2018 10:50:03(UTC)
#17

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There are a couple of really good resources here:

https://drive.google.com...7VqzO5tyYgifOZd0Lr/view
http://www.comparefundplatforms.com/

I'm currently with Interactive Investor because the flat fee makes sense for how I'm planning on investing, but depending what you intend to hold and how often you trade there may be other options.

For me for example even at a small size, someone like Chelsea or HL would cost a small fortune v II.
citymoke
Posted: 29 April 2018 02:01:12(UTC)
#18

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iWeb for me for everything. Don't pay anything to them apart from the very occasional fiver for buying/selling.

One thing though - at the moment they don't have the selection of investment products available that, say, HL have. I wanted a Legg Mason Global Infrastructure Fund, but the iWeb Cofunds platform don't have that on their list, so purchased it via HL instead with their 0.45% platform charge!

But whenever possible, any new ISA investment that i wish to purchase is via iWeb.
2 users thanked citymoke for this post.
andy mac on 29/04/2018(UTC), william barnes on 29/04/2018(UTC)
Steve U
Posted: 30 April 2018 08:27:08(UTC)
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Chris Howland;61353 wrote:
Halifax Sharedealing charge £12.50 a year for an ISA account.

Dealing is £12.50, with monthly low cost trade windows where dealing is reduced to £3.95.

It works for me!

Chris



same platform as iWeb, who they own, but a bit more expensive than iWeb iirc
1 user thanked Steve U for this post.
william barnes on 30/04/2018(UTC)
huudi
Posted: 30 April 2018 16:19:14(UTC)
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citymoke;61424 wrote:
iWeb for me for everything. Don't pay anything to them apart from the very occasional fiver for buying/selling.

One thing though - at the moment they don't have the selection of investment products available that, say, HL have. I wanted a Legg Mason Global Infrastructure Fund, but the iWeb Cofunds platform don't have that on their list, so purchased it via HL instead with their 0.45% platform charge!

But whenever possible, any new ISA investment that i wish to purchase is via iWeb.


I tried to buy AA4 with iweb, they didn't know of it. As this is only my second 'attempted' purchase with iweb then in theory only 50% of shares are available. Do X-O fare any better?

Ten years ago Charles Stanley paid interest on cash, now they charge to keep it? Something not right there!
huudi
Posted: 30 April 2018 16:33:14(UTC)
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I have an account with Interactive Investor, the service was simple & efficient until they combined with TD Waterhouse. Since then I have lost all information of transactions including a monthly DD which seems disappear on-route. My query received a standard 'how to use the site' reply. I await the second reply, each one takes 2 days
.
It seems with every update, any brokers service gets worse.
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