Stocks and shares ISA - Monthly payments and charges

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TopCat1978
TopCat1978 Posts: 40 Forumite
in ISAs & tax-free savings
Sorry if this has already been asked and someone can redirect me to the thread.

I want to start up a S&S ISA and put in £50/£100 per month for the forseeable future. I know it isn't a lot but I want to put money which we won't need and hope it grows.

I have been reading the ISA guides and keep getting confused. I understand that there is the Cavendish Online or the iWeb but will I be charged everytime I put my monthly amount in for sale / purchase?

Or Would I be best to save up and then put a lump sum in?

Does anyone have any recommendations of the best way to do this?

Thanks in advance.
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Comments

  • bolzano
    bolzano Posts: 91 Forumite
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    iweb are not really set up for monthly investments in that way. I'm not sure about Cavendish.

    I'd recommend looking at Charles Stanley Direct. You can set up a direct debit for a monthly amount, and a regular monthly investment. You'd need a £500 lump sum to start it off, but then you can invest from £50 a month with no transaction charges.
  • TCA
    TCA Posts: 1,530 Forumite
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    Try here: http://monevator.com/compare-uk-cheapest-online-brokers/
  • jimjames
    jimjames Posts: 17,624 Forumite
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    Cavendish use the Fidelity platform but are cheaper.

    I use them and they are fine for monthly investments.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • TopCat1978
    TopCat1978 Posts: 40 Forumite
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    Thank you all. I will look at the suggestions.

    Jimjames, how do the charges get calculated? Just don't want to lose a chunk of my monthly investment if I can avoid it.

    Thanks
  • suse*
    suse* Posts: 303 Forumite
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    I have just started with cavendish, you need to check the fees for each fund you're planning on investing in as it isn't just if you pay a fee per transaction but also the on going fees. There will always be fees of some sort it is just how you're planning to invest and spread the risk. I am following http://monevator.com/category/investing/passive-investing-investing/ way of investing but they have a lot of good information about keeping the overall fees low.

    Investments can always go down as well as up remember too so nothing is risk free you just have to think of it in the long term.
    [STRIKE]Original Mortgage 07/07 £160000 LTV 100% [/STRIKE]Remortgaged 10/13 £118000 LTV 84%
    Outstanding 02/12/14 £107652.40     LTV 76%
  • Futuristic
    Futuristic Posts: 1,131 Forumite
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    I'm with Cavendish as well, deals can take 5-7 days but other then that it's panel is easy to use and does monthly investments

    The above site monevator is really useful for beginners as well
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,594 Ambassador
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    I have just started a monthly investment plan with Cavendish and charges are 0.10 per transaction plus the fund charges.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • edinburgher
    edinburgher Posts: 13,463 Forumite
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    You'd need a £500 lump sum to start it off, but then you can invest from £50 a month with no transaction charges.

    That's incorrect, there's no need to pay in a lump sum to be able to continue with regular investments, you can start with just the monthly payment set up.
  • Kendall80
    Kendall80 Posts: 965 Forumite
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    edinburgher wrote: »
    That's incorrect, there's no need to pay in a lump sum to be able to continue with regular investments, you can start with just the monthly payment set up.

    In addition, with CSD you can top up with £100 min. whenever you like once you hold a fund. I believe the other sites have a similar arrangement. Bestinvest for instance permit £80 top ups to my SIPP.
  • Tammy2
    Tammy2 Posts: 284 Forumite
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    I've also got a simialr amount to invest a month (£50 - £75) and no lump sum. But I've got myself thoroughly confused.

    Does the Cavendish drip feed option choose the investments? I've no idea where to begin and would want that type of arrangement - I wouldn't want to self select (not even sure if I'm using the right terms :/ ).
    To Do 2015
    Claim back PPI & packaged bank account fees
    Take (further) first steps in investing (S&S ISA)
    Start saving for the children
    Start a business
    + £2015 in 2015 from home / £5026.21
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