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The Share Centre for holding unit trusts/OEICs for a flat fee

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  • grey_gym_sock
    grey_gym_sock Posts: 4,508 Forumite
    Mattygroves2 wrote: »
    The thing I don't like about iWeb is that you can't have a joined up funds and shares ISA so I couldn't do what I currently do and use my ISA allowance to buy some funds and some shares.

    some ppl have said that you actually can do that with iweb (though the choice of "products" makes it look like you can't). i only have a sharedealing (i.e unwrapped) account with iweb, so i can't verify this.
  • Porcupine
    Porcupine Posts: 682 Forumite
    Mattygroves2 wrote: »
    The thing I don't like about iWeb is that you can't have a joined up funds and shares ISA so I couldn't do what I currently do and use my ISA allowance to buy some funds and some shares. Otherwise the pricing looks good.

    You can - they've abolished the Funds ISA and you can buy funds and stocks in the S&S ISA. Not sure why they haven't updated the website to say this.

    (A caveat that it's not worth buying many funds until the new RDR pricing comes into effect on 31st March as until then many have full initial charges still in place)
  • Special_Saver2
    Special_Saver2 Posts: 1,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 30 January 2014 at 9:17AM
    Thanks le loup, there is already a thread which is specific for S&S ISAs that includes platforms: Low Cost Stocks & Shares (Investment) ISAs: The Best Currently Available List!

    (Edit: I have just edited that thread to throw in some SIPP costs too for people who are re-evaluating their pension money at the moment.)

    There is also a good tool (that I mention in the introduction to my thread above) from Candid Money: http://www.comparefundplatforms.com/

    Please tell me more about SnowMan's spreadsheet. Do you have a link?

    I agree that iWeb does seem to offer an excellent deal. As discussed in another thread recently, I was one of the people that was worried it was too good to be true although now that Halifax Share Dealing have come out with similarly low charges (iWeb are a white label service of Halifax), I am more inclined to believe this.

    SS2
  • SnowMan
    SnowMan Posts: 3,679 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 7 April 2016 at 8:36AM
    Special_Saver2 wrote: »

    Please tell me more about SnowMan's spreadsheet. Do you have a link?

    SS2

    I think this is my spreadsheet being talked about, to enable platform charges to be calculated and compared between platforms for clean share price pricing (allows for dealing costs also through number of sales and purchases inputs).

    https://drive.google.com/file/d/0BxA6Przq6KI1R3hTcUxnM29XaE0/view?usp=sharing

    The (excel) spreadsheet can be downloaded by going to that link and choosing file download.

    The basic idea is that platform charges and fund manager charges are now separated. So the starting point in looking at costs is to compare platform costs for your own particular mix of ISAs, dealing account and SIPPs and based on your mix of funds and ETFs.

    You can then adjust for any super clean share classes or short term remaining in dirty class options (although the spreadsheet doesn't do this). But those differences aside fund manager costs can be ignored as they cancel out. The answers are shown as £ figures and percentage (so you can use the latter to add in your average percentage fund manager cost to estimate your total cost).

    A lot of the comparisons I have seen only compare ISA only or SIPP only or dealing account only portfolios. This does not allow for the considerable discounts on SOME platforms for holding ISAs and SIPPs and dealing accounts on the same platform. For example interactive investor is a £144pa custody charge for SIPP only portfolios, £80pa for an ISA only portfolio, £80pa for a dealing account portfolios. If you add the separate costs you end up with a cost of £304pa whereas if you hold all three accounts you will in fact pay £144pa (less than half). Trustnet Direct has a £200 capped charge across accounts (plus £144 SIPP charge).

    That is why the spreadsheet allows you to add in all the different accounts so these discounts can be considered. Those platforms that have no or little discount for holding multiple accounts no doubt will look to provide ISA only portfolio comparisons or SIPP only portfolio comparisons.

    It is also a good idea to look at options of keeping funds and shares separately. This is why the spreadsheet works out an everything together cost, a shares and ETFS only cost (based on the shares and ETF element only) and a funds only cost (based on the funds element only)

    There is also a column that calculates exit charges by way of re-registration. High exit cost platforms should other things being equal be avoided, because it will be difficult to switch and some of these platforms have form for putting up charges without allowing customers the temporary option to leave (OFT guidance seems to suggest they can't do this but not everyone will want to take a case through the county courts, and noting the Financial Ombudsman Service are causing significant customer detriment by not properly applying the UTCCR).

    The spreadsheet is a work in progress but it is just about getting there. Because of the incredible complexity of charging structures and the complicated interactions between accounts there are bound to be a few errors in there.

    Sorry this post has been a bit rushed, busy day ahead.
    I came, I saw, I melted
  • Special_Saver2
    Special_Saver2 Posts: 1,434 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Hi SnowMan,

    Great! I will throw a link right now to that into the introductory section of the ISAs thread that I mentioned above.

    SS2
  • le_loup
    le_loup Posts: 4,047 Forumite
    Special_Saver2 wrote: »
    Thanks le loup, there is already a thread which is specific for S&S ISAs that includes platforms: Low Cost Stocks & Shares (Investment) ISAs: The Best Currently Available List!
    There!
    You're one step ahead already. (Well alright, two years ahead!)
    Thanks; you're a star. ;)
  • Imnoexpert_2
    Imnoexpert_2 Posts: 350 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    One other factor I think needs to be built in when considering platform options is the cost to cash in the investment. A platform like interactive investor would cost you £10 per fund to sell, so if you have a lot of individual funds with small sums in that would be more costly than a platform like HL with no dealing cost.

    The spreadsheet is very helpful because every portfolio will be different and when the cost of HL and all the others 'super-clean' funds are known even more complex for someone to calculate the best option.
  • traineepensioner
    traineepensioner Posts: 329 Forumite
    Part of the Furniture 100 Posts
    Halifax are another platform that seem to be moving towards a flat fee ....http://www.halifax.co.uk/sharedealing/fund-changes/
    and http://www.halifax.co.uk/sharedealing/charges/new-charges/
    If I've read this right :o...Annual admin charge of £11.16 and dealing costs of £12.50. Which sounds good for a larger portfolio with a buy & hold strategy :)
    No longer trainee :o
    Retired in 2012 (54) :)
    State pension due 2024 (66) :(
  • Porcupine
    Porcupine Posts: 682 Forumite
    edited 30 January 2014 at 1:44PM
    Imnoexpert wrote: »
    One other factor I think needs to be built in when considering platform options is the cost to cash in the investment. A platform like interactive investor would cost you £10 per fund to sell, so if you have a lot of individual funds with small sums in that would be more costly than a platform like HL with no dealing cost.

    I agree. But one way of looking at it is that, say, a £20K portfolio will cost £90 in platform fee at HL. At iWeb the trade fees are £5 per deal. So do you deal 18 times a year? (Buys and sells - not sure if a swap counts as one or two). If not, iWeb could be cheaper.

    If you have £50K it's 45 deals a year, and so on. I don't think it takes too long before we get beyond the dealing level of many buy-and-hold investors. Any year in which you deal less than the threshold, you win.

    Put it yet another way. You hold your £50K for 10 years, which buys you 450 deals in HL land. Let's say you hold 20 funds, so that's 20 sale deals to spend when you cash out. That still leaves you with 430 deals over 10 years. That's an awful lot of deals. Even now they've pulled the regular saving option (which I'm quite sad about), that's 3.6 deals a month, every month, for 10 years. Do you really do that?
  • le_loup
    le_loup Posts: 4,047 Forumite
    Porcupine wrote: »
    (Buys and sells - not sure if a swap counts as one or two).
    Swap is two.
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