Best S&S ISA for Bonds

grey_gym_sock wrote: »

do you want to buy sterling bonds? (it may be possible to buy bonds denominated in euros or other currencies, too; you'd have to consider FX charges.)

i've used 3 brokers for individual bonds:

1) hargreaves lansdown

many bonds can be traded online - i.e. the ones with the white-on-green arrows in this list:

online dealing gives you a live price (to accept or reject), including an accrued interest calculation. £11.95 dealing commission.

for bonds that can't be dealt online, you'd have to deal by phone, with higher dealing commission. (i haven't done that.)

they also charge on-going fees for just holding bonds in an ISA, of 0.45% per year, capped at £45 per year.

2) ajbell youinvest

bonds can only be dealt by phone. when you phone, you don't get a live price; you can place either of 2 order types: at best, or fill-or-kill.

they charge their online dealing commission rate, £9.95, for bonds, not their higher phone rate (because bonds can't be dealt online).

there are also on-going holding charges, of 0.25% per year, capped at £30 per year.

3) iweb

bonds can only be dealt by phone. you are quoted a live price while you're on the phone. they charge the same dealing commission as online, £5.

however, i believe the range of bonds you can deal with iweb has become more restrictive recently.

no on-going charges, but a one-off charge of £25 to open your first account.