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    • PotentialEnergy
    • By PotentialEnergy 11th May 16, 9:45 PM
    • 55Posts
    • 13Thanks
    Investment Club Bank Account
    • #1
    • 11th May 16, 9:45 PM
    Investment Club Bank Account 11th May 16 at 9:45 PM
    I'm looking to set up an investment club in the coming weeks and one of the things to consider are bank and broker accounts.
    So long as we agree to not want Unit Trusts/OEICs and Foreign Shares, looks the most cost-effective broker. Do advise if you know of another that offers even better value trading.

    But, what about Bank Accounts? What is on offer and is there an account offering any interest?

Page 2
    • PotentialEnergy
    • By PotentialEnergy 12th Sep 16, 6:43 PM
    • 55 Posts
    • 13 Thanks
    I can see their point - your club is for your members gains not a community thing such as a football team that you quoted.
    Why not put 'non-profit-making'

    Also a bit late in the thread to say you wanted free banking - I would have thought you would have put that in the first post
    For most people who bank, free banking is assumed as a pre-requisite before having the nerve to expect interest.

    What I want some honest feedback on is :

    Anyone had experience or know anyone who has used them?
    • PotentialEnergy
    • By PotentialEnergy 15th Nov 16, 9:31 PM
    • 55 Posts
    • 13 Thanks
    We joined Timetotrade and are suitably impressed with Dary's attention to service. Done a couple of purchases and some more will be done over thenext couple of weeks.
    • PotentialEnergy
    • By PotentialEnergy 5th Feb 17, 2:53 PM
    • 55 Posts
    • 13 Thanks
    We took the risk with and are very happy. Whenever there were technical issues/queries they were responded to and resolved expediently. The only warning I'd give is their initial computation of units held is subject to rounding errors at about the 3rd decimal point until say £10K has been subscribed. It treats purchases of units sequentially so when all of us have Standing Orders it is a lottery in what order they are treated. But, administrators can fix that problem easily if all members are subscribing the same amount.
    The charge of 0.1% per quarter on your equity holdings are very reasonable and the broking fee is miniscule compared to Barclays Stockbrokers where the previous investment club held its account. I believe Barclays has stopped providing accounts for clubs.
    • keithgrover
    • By keithgrover 19th Apr 17, 7:12 PM
    • 2 Posts
    • 0 Thanks
    Metro Bank - forget it!
    Spent ages talking to Metro Bank about opening one of their Clubs and Societies accounts for our share club, only for their New Accounts department eventually to come back with 'computer says no' as they are only for 'not-for-profit organisations'. Maybe they should tell their local staff that (including so-called Business Managers) and save everybody a lot of time and hassle...
    • keithgrover
    • By keithgrover 24th Apr 17, 11:22 AM
    • 2 Posts
    • 0 Thanks
    Why Metro Bank is useless...
    This is what my Metro Bank Local Director finally told me after 3 weeks to and fro, where they had been reassuring me that it 'wouldn't be a problem':
    Unfortunately we would be unable to open this account as .....
    Current accounts - these are not personal funds
    Business / Ltd company account - this is not a LTD co
    Sole trader - you would not have a 'club' in the account name & the account is not a sole trader

    Clearly even their senior people don't know the product range, and share clubs fall into a hole in the system. As a result we cannot access our funds as our broker TD Waterhouse won't pay out unless we have a bank account in the club's name...

    Catch 22?
    • DaryMcGovern
    • By DaryMcGovern 4th May 17, 11:18 AM
    • 1 Posts
    • 0 Thanks
    TimeToTrade Feedback

    I'm 'Dary' that PotentialEnergy mentioned and the founder of TimeToTrade.

    If you are setting up an investment club and are struggling to open a bank account, you can apply for a TimeToTrade 'Club Member' account. Club members can directly pay member subscriptions into their TimeToTrade Investment Club trading account and units are bought and sold as funds are received or withdrawn.

    With regards to treating the purchases of units sequentially, when funds arrive, units are allocated at the prevailing unit value, however your trading account can be set up to automatically revalue unit transactions on a selected date each month. Please contact TimeToTrade support and they will set this up for you.

    As for rounding, the unit value on TimeToTrade is calculated to 6 decimal places. Rounding will be applied to the display of cash amounts to the nearest penny.

    With regards to creditability, TimeToTrade has played a central role in organising the National Investment Club conference since 2007 and we have over 3,400 registered clubs on TimeToTrade. In addition TimeToTrade is regulated by the Financial Conduct Authority number 679941 and clients are protected by the Financial Services Compensation Scheme.

    When operating a club, members have to consider how they are going to:
    • apportion ownership between members as members pay in subscriptions and make withdrawals
    • manage the apportionment of ownership as members come and go and subscriptions made by each member vary
    • provide visibility to members of their holdings
    • provide visibility to members of their unit valuation
    • provide visibility to members of their club investment and individual performance
    • manage the addition and removal of club members
    • produce annual tax returns
    • audit club accounts to identify human error if accounting transactions are manually entered
    • manage the club treasurer no longer wanting to continue in their role
    • manage the club treasurer's computer getting a virus, hard drive failure or computer breaking
    • manage accounts when the club treasurer goes on holidays
    • ensure that the treasurer is correctly inputting unit transactions, at the correct unit value each month

    In addition, issues that clubs face:
    • difficulty opening club bank accounts
    • difficulty opening a club trading account
    • duplicating the compliance and cost associated with operating a bank and club account
    • transferring funds between club and bank accounts as subscriptions and withdrawals are processed

    TimeToTrade has solved these issues. Should your club decide to open an 'Club Member' Trading account the benefits include:
    • Member subscriptions are paid directly into your TimeToTrade trading account making them immediately available for trading
    • Member subscriptions and withdrawals automatically update member unit holdings
    • Investment transactions, dividends and share reorganisations are automatically updated based on trades executed via TimeToTrade
    • No more monthly bank and club account reconciliations to calculate the club unit value as this happens automatically
    • The club does not require a bank account, therefore reducing compliance issues and making funds immediately available for trading
    • Online solution for authorising club members, therefore the club secretary does not have to spend weeks, if not months, gathering documentation from club members
    • Club Management solution whereby all club members can log in to view their unit holdings, valuation and performance
    • Roles and privileges can be set to provide varying levels of functionality to each member e.g. assign which members can trade
    • TimeToTrade is a web-based platform, therefore removing the issue of individual member computer's breaking, while providing ready access to all club members
    • Club Members can log in and view tax liabilities, then generate current and historical tax returns and reports at any point in time
    • The role of the treasurer is to audit the club accounts, therefore making it easier to transfer the role between members
    • Peace of mind knowing that member units are being correctly apportioned based on accurate unit valuation as this is automatically processed by TimeToTrade

    To learn more about the types of TimeToTrade investment club accounts available, go to the TimeToTrade site and select 'Investment Clubs' from the 'Trade' menu.

    All the best
    Dary McGovern
    • eskbanker
    • By eskbanker 4th May 17, 12:18 PM
    • 4,770 Posts
    • 4,509 Thanks
    Dary - you should familiarise yourself with the forum rules (link at the foot of the page) that prohibit posters from promoting their company unless they go through the relevant verification/authorisation process to get an official account for doing so....
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