Halifax Share Dealing - best flat fee provider?

jimjames · 20 March 2017 at 2:11PM

moneyfoolish wrote: »

Presumably if you transfer £15000 in from a cash ISA and hold as cash (can you do this?) and then make 12 monthly fund purchases with that £15000 that is much more expensive than just making one fund purchase with the £15000?

Yes. With iWeb it would cost 12 x £5 not just £5 so 12x as expensive.

JohnRo · 20 March 2017 at 2:28PM

Yes. With iWeb it would cost 12 x £5 not just £5 so 12x as expensive.

This is why folks need to think about how they're going to operate the investment account in the months and years after it's open once they've made their first deposit.

A typical percentage broker at 0.25% pa, for the same £15K in 12 equal monthly transactions would cost just under £19 in year one as opposed to £60 (plus the £25 one off) in year one at iweb.

[Deleted User] · 20 March 2017 at 3:53PM

JohnRo wrote: »

This is why folks need to think about how they're going to operate the investment account in the months and years after it's open once they've made their first deposit.

A typical percentage broker at 0.25% pa, for the same £15K in 12 equal monthly transactions would cost just under £19 in year one as opposed to £60 (plus the £25 one off) in year one at iweb.

For anyone contemplating smaller regular (monthly) investments I suggest they look at Selftrade at £1.50, but for larger sporadic purchases consider IWeb at £5.

Audaxer · 20 March 2017 at 4:20PM

Thanks all. Interesting about IWeb, but I think I'll probably feel more comfortable going with Halifax, even although IWeb is a bit cheaper and operated by Halifax anyway.

I intend to start with this year's ISA allocation. As long as I put the full £15,240 in the Halifax S&S ISA before 6 April, would it still all count as this year's allocation, even if I didn't move it all into funds before the deadline?

Do you need to leave a nominal amount of cash in the ISA anyway to cover the admin and trading fees?

[Deleted User] · 20 March 2017 at 4:37PM

Audaxer wrote: »

I intend to start with this year's ISA allocation. As long as I put the full £15,240 in the Halifax S&S ISA before 6 April, would it still all count as this year's allocation, even if I didn't move it all into funds before the deadline?

Do you need to leave a nominal amount of cash in the ISA anyway to cover the admin and trading fees?

Just make sure you check the deadline for this financial year's allocation with Halifax and get it there a few days' before in case of gremlins. After that you don't need to invest in securities by any particular time.

It's a good idea to leave some cash in the ISA at all times. Not only for fees but occasionally you might be offered things like a rights issue. One of the problems with ISAs (unlike non ISA dealing) is that, once you've fully subscribed for the year, you can't easily just pop in some more cash to take advantage of such offers.

Eco_Miser · 20 March 2017 at 5:21PM

Audaxer wrote: »

As long as I put the full £15,240 in the Halifax S&S ISA before 6 April, would it still all count as this year's allocation, even if I didn't move it all into funds before the deadline?

Yes, in theory 23:59 on April 5th would be OK - but don't leave it that late.

Audaxer wrote: »

Do you need to leave a nominal amount of cash in the ISA anyway to cover the admin and trading fees?

I don't know the procedures at Halifax, but at Iweb, you specify how much you want to spend, and they buy £5 less than that of the fund you want, and keep the fiver for themselves. (For shares, the stamp duty is also deducted, reducing your actual purchase even further). No annual fee either, so no need to leave cash in the account. For Halifax, it would be as well to check how they take the annual fee, and leave enough cash to cover it.

badger09 · 20 March 2017 at 6:44PM

Audaxer wrote: »

Thanks all. Interesting about IWeb, but I think I'll probably feel more comfortable going with Halifax, even although IWeb is a bit cheaper and operated by Halifax anyway.

I intend to start with this year's ISA allocation. As long as I put the full £15,240 in the Halifax S&S ISA before 6 April, would it still all count as this year's allocation, even if I didn't move it all into funds before the deadline?

Do you need to leave a nominal amount of cash in the ISA anyway to cover the admin and trading fees?

I've suggested this on other threads to people who are starting S&S ISAs for the first time.

Rather than rush into a decision over choice of platform, which you may soon regret, why not open any bog standard instant access cash ISA to buy some time. Fund it with £15240, then ask your well chosen;) S&S provider to arrange the transfer of that cash on or after 6th April.

Audaxer · 20 March 2017 at 7:18PM

badger09 wrote: »

I've suggested this on other threads to people who are starting S&S ISAs for the first time.

Rather than rush into a decision over choice of platform, which you may soon regret, why not open any bog standard instant access cash ISA to buy some time. Fund it with £15240, then ask your well chosen;) S&S provider to arrange the transfer of that cash on or after 6th April.

Thanks, yes that is a possibility, but I think I've now made up my mind on Halifax for my VLS fund.

I've also got funds in other Cash ISAs that I want to transfer to a different S&S ISA and invest in Investment Trusts, when I research a bit more and establish what ITs I want. I know that I could also add them to the Halifax S&S ISA, but rather than have all my eggs on one platform, being ultra cautious I was thinking of opening them on another platform, maybe even HL as their platform fee for Investment Trusts is capped at £45. As that will be transferred ISA funds rather than new ISA funds, presumably I can still open another S&S ISA on another platform in the same tax year if I wish?

george4064 · 20 March 2017 at 7:38PM

Audaxer wrote: »

Thanks, yes that is a possibility, but I think I've now made up my mind on Halifax for my VLS fund.

I've also got funds in other Cash ISAs that I want to transfer to a different S&S ISA and invest in Investment Trusts, when I research a bit more and establish what ITs I want. I know that I could also add them to the Halifax S&S ISA, but rather than have all my eggs on one platform, being ultra cautious I was thinking of opening them on another platform, maybe even HL as their platform fee for Investment Trusts is capped at £45. As that will be transferred ISA funds rather than new ISA funds, presumably I can still open another S&S ISA on another platform in the same tax year if I wish?

The rule is you can only subscribe new money to 1 S&S ISA per tax year, remember that ISA transfers are not new money. So if you were to open a new ISA for the sole purpose of facilitating a transfer from another ISA is fine and doesn't count as new money.

With regard to holding ITs with HL, this is exactly what I do (along with some shares and ETFs) and its great with the £45 capped annual charge. Trades are £11.95 each, they have a fantastic dividend re-investment program which covers all holdings (so many other platforms have a petty list of assets that are eligible for the automatic dividend reinvestment reduced charges).

greenglide · 20 March 2017 at 8:05PM

and its great with the £45 capped annual charge

Of course you can use TD Direct which is free for shares (including ITs and ETFs) for amounts of £5,100 and above in an ISA.

Youinvest charges for shares in an ISA is 0.25% which is capped at £7.50 per quarter which is £30 per year.

Both are less than HL and their charges are calculated over the whole platform holding rather than on the individual type (ISA, unwrapped etc) that HL use.

Halifax Share Dealing - best flat fee provider?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free