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    • A_T
    • By A_T 15th Jul 17, 6:56 PM
    • 241Posts
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    A_T
    HL share dealing account "no charge"
    • #1
    • 15th Jul 17, 6:56 PM
    HL share dealing account "no charge" 15th Jul 17 at 6:56 PM
    Looking at their website it costs £11.95 to make a deal but then no annual charge (unlike the .45% for ISA and SIPP). What's the catch?
Page 1
    • ColdIron
    • By ColdIron 15th Jul 17, 7:29 PM
    • 3,679 Posts
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    ColdIron
    • #2
    • 15th Jul 17, 7:29 PM
    • #2
    • 15th Jul 17, 7:29 PM
    None, that's the deal for the Fund and Share account, it's quite competitive. The ISA and SIPP charges are capped at £45 and £200
    • EdSwippet
    • By EdSwippet 15th Jul 17, 7:38 PM
    • 628 Posts
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    EdSwippet
    • #3
    • 15th Jul 17, 7:38 PM
    • #3
    • 15th Jul 17, 7:38 PM
    What's the catch?
    Originally posted by A_T
    Compare the £11.95 to £5 in iWeb. No annual charge for a vanilla dealing account either, although there is a £25 iWeb one-off startup fee, making it a net saving after four trades.
    • A_T
    • By A_T 15th Jul 17, 7:39 PM
    • 241 Posts
    • 122 Thanks
    A_T
    • #4
    • 15th Jul 17, 7:39 PM
    • #4
    • 15th Jul 17, 7:39 PM
    None, that's the deal for the Fund and Share account, it's quite competitive. The ISA and SIPP charges are capped at £45 and £200
    Originally posted by ColdIron
    Thanks.

    I was wondering if I invest 10k in just one ETF, I'm thinking of HSBC ETFs Plc MSCI World ETF GBP (HMWO) which has an annual fee of .15%, will I incur any foreign exchange charges from HL. Or will I just pay the £11.95 deal charge then no further charges from HL just the .15% fund charge?
    • naedanger
    • By naedanger 15th Jul 17, 7:41 PM
    • 2,191 Posts
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    naedanger
    • #5
    • 15th Jul 17, 7:41 PM
    • #5
    • 15th Jul 17, 7:41 PM
    Looking at their website it costs £11.95 to make a deal but then no annual charge (unlike the .45% for ISA and SIPP). What's the catch?
    Originally posted by A_T
    If you buy unit trusts or OEICs there is an ongoing charge on those funds of up to 0.45% p.a.

    http://www.hl.co.uk/investment-services/fund-and-share-account/charges-and-interest-rates

    There are also termination charges which can be significant if you have a lot of separate holdings. And in the past HL have introduced new charges and increased existing charges and levied exit fees on those trying to leave solely to avoid the new/increased charges.
    • ColdIron
    • By ColdIron 15th Jul 17, 7:55 PM
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    ColdIron
    • #6
    • 15th Jul 17, 7:55 PM
    • #6
    • 15th Jul 17, 7:55 PM
    will I incur any foreign exchange charges from HL.
    Originally posted by A_T
    What sort of 'foreign exchange charges' are you thinking of? It looks like a standard ETF to me

    Or will I just pay the £11.95 deal charge then no further charges from HL just the .15% fund charge?
    Yes I should think so
    • Economic
    • By Economic 16th Jul 17, 8:40 AM
    • 152 Posts
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    Economic
    • #7
    • 16th Jul 17, 8:40 AM
    • #7
    • 16th Jul 17, 8:40 AM
    Thanks.

    I was wondering if I invest 10k in just one ETF, I'm thinking of HSBC ETFs Plc MSCI World ETF GBP (HMWO) which has an annual fee of .15%, will I incur any foreign exchange charges from HL. Or will I just pay the £11.95 deal charge then no further charges from HL just the .15% fund charge?
    Originally posted by A_T
    For HMWO, I think that the dividends will be paid in US dollars and HL will probably charge a FX fee of 1.5%.
    The exit fees at HL would put me off using them (an account closure fee of £25+VAT and £25 per holding to transfer shares to another broker).
    • nxdmsandkaskdjaqd
    • By nxdmsandkaskdjaqd 16th Jul 17, 8:44 AM
    • 481 Posts
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    nxdmsandkaskdjaqd
    • #8
    • 16th Jul 17, 8:44 AM
    • #8
    • 16th Jul 17, 8:44 AM
    The ISA and SIPP charges are capped at £45 and £200
    Originally posted by ColdIron
    Is that correct? I am being charged the standard 0.45% for the ISA and SIPP.
    • Glen Clark
    • By Glen Clark 16th Jul 17, 9:50 AM
    • 3,919 Posts
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    Glen Clark
    • #9
    • 16th Jul 17, 9:50 AM
    • #9
    • 16th Jul 17, 9:50 AM
    Looking at their website it costs £11.95 to make a deal but then no annual charge (unlike the .45% for ISA and SIPP). What's the catch?
    Originally posted by A_T
    I use x-o at £5.95 and no annual charge for shares and ETFs.
    I suppose the 'catch' is you get no interest on cash, people tend to trade more than they think they will, and buy other things the platform makes a profit on. Same as Banks offer free current acounts in the hope of selling you something they make a profit on.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
    • jimjames
    • By jimjames 16th Jul 17, 9:55 AM
    • 12,241 Posts
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    jimjames
    None, that's the deal for the Fund and Share account, it's quite competitive. The ISA and SIPP charges are capped at £45 and £200
    Originally posted by ColdIron
    That's only true for shares though isn't it? I thought funds were uncapped?
    Remember the saying: if it looks too good to be true it almost certainly is.
    • george4064
    • By george4064 16th Jul 17, 10:03 AM
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    george4064
    That's only true for shares though isn't it? I thought funds were uncapped?
    Originally posted by jimjames
    Correct, the caps only apply to shares, ITs and ETFs. For all funds/UTs there is no cap on the platform fee.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

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    • Tom99
    • By Tom99 16th Jul 17, 10:06 AM
    • 696 Posts
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    Tom99
    Halifax also have no admin fee. They normally charge £12.50 a deal but have a cheap dealing day each month at £3.95. There is one next Wednesday.

    You can also make one off investments for a £2 dealing charge by using the regular investments option. However in that case the deal goes through a few days later rather than immediately but that is ok for say dividend reinvestment.
    • ColdIron
    • By ColdIron 16th Jul 17, 10:24 AM
    • 3,679 Posts
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    ColdIron
    Is that correct? I am being charged the standard 0.45% for the ISA and SIPP.
    Originally posted by nxdmsandkaskdjaqd
    That's because you are using funds not company shares, investment trusts or EFTs
    That's only true for shares though isn't it? I thought funds were uncapped?
    Absolutely, funds are uncapped. However the thread relates to the 'HL share dealing account'
    • jimjames
    • By jimjames 16th Jul 17, 10:26 AM
    • 12,241 Posts
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    jimjames
    That's because you are using funds not company shares, investment trusts or EFTs
    Absolutely, funds are uncapped. However the thread relates to the 'HL share dealing account'
    Originally posted by ColdIron
    It's actually the Fund & Share account but you're right it doesn't apply to shares

    http://www.hl.co.uk/investment-services/fund-and-share-account
    Remember the saying: if it looks too good to be true it almost certainly is.
    • george4064
    • By george4064 16th Jul 17, 10:26 AM
    • 865 Posts
    • 933 Thanks
    george4064
    That's because you are using funds not company shares, investment trusts or EFTs
    Absolutely, funds are uncapped. However the thread relates to the 'HL share dealing account'
    Originally posted by ColdIron
    It was of my understanding (and perhaps of others) that the op used the term 'share dealing account' with reference to the non-ISA account aka Vantage Fund & Share account that HL offer. As the actual name suggests, it can accomodate both shares and funds.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

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    • ColdIron
    • By ColdIron 16th Jul 17, 10:40 AM
    • 3,679 Posts
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    ColdIron
    It's actually the Fund & Share account but you're right it doesn't apply to shares
    Originally posted by jimjames
    For sure, but without wanting to descend to levels of pedantry (or Wiki links) seen in other threads, that would be why I mentioned it

    None, that's the deal for the Fund and Share account
    Originally posted by ColdIron
    It was of my understanding (and perhaps of others) that the op used the term 'share dealing account' with reference to the non-ISA account aka Vantage Fund & Share account that HL offer. As the actual name suggests, it can accomodate both shares and funds.
    Indeed, it can hold both but the OP refers to the £11.95 transaction fee which doesn't apply to funds, only shares
    • AnotherJoe
    • By AnotherJoe 18th Jul 17, 8:22 AM
    • 7,679 Posts
    • 8,291 Thanks
    AnotherJoe
    Thanks.

    I was wondering if I invest 10k in just one ETF, I'm thinking of HSBC ETFs Plc MSCI World ETF GBP (HMWO) which has an annual fee of .15%, will I incur any foreign exchange charges from HL. Or will I just pay the £11.95 deal charge then no further charges from HL just the .15% fund charge?
    Originally posted by A_T
    HMWO is a London listed ETF priced in Pounds and paying dividends in Pounds. Therefore there will be no foreign exchange charges. Any foreign conversion costs are born by the fund and aren't visible to you, no different to say Vanguard which will be buyinga s selling shares globally but you just see the U.K. Prices.
    • Biggles
    • By Biggles 18th Jul 17, 5:00 PM
    • 7,515 Posts
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    Biggles
    I don't think there's much of a 'catch' for the punter. But I can't help thinking, 'What's in it for the broker'?
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