SIPP recommendation Needed

everylittlehelps_2

Hi,

I have decided to open a SIPP (Self Invested Pension Plan), any experienced guys/IFA pl let me know the best providers interms of available product to invest in and also the charges.

Thanks in Advance

dunstonh

What assets do you intend to invest in?

david78

Yes it depends on what you will be putting in the SIPP; there are low cost/online ones which only allow funds and shares, and more expensive ones which allows you to put other assets in.

everylittlehelps_2

Must Have

55% in
UT - Unit Trusts
IT - Investment Trusts
OEIC - Open Ended Investment Companies

10% in
ETF - Exchange Traded Funds

20% in
Commodities
Corporate Bonds

15% in
UK/US/Europe Equities

Nice to Have

FX - Foreign Exchange Dealing
CFD - Contracts for Difference

dunstonh wrote: »

What assets do you intend to invest in?

EdInvestor

Jave a look at https://www.sippdealextra.co.uk

DUS

Ed,

I am also looking into SIPPs at the moment and based on information on the internet, including your various posts on this forum, I´ve also had a look at sippdealextra.

Now, this will probably be a stupid question but what´s the difference between sippdeal and sippdealextra? I´ve seen that sippdealextra have a charge of GBP 20 + VAT per quarter but sippdeal doesn´t seem to have these fees. What more does sippdealextra offer to justify the fee of 80 Pounds?

Also, I would want to have access to all German shares traded in Frankfurt (incl. XETRA). Do both, sippdeal and sippdealextra, offer that? I must admit, the longer I look into all the various SIPP provider the more confused I get.
Any help/info will therefore be greatly appreciated.

Thank you!

DUS

EdInvestor

DUS wrote: »

... what´s the difference between sippdeal and sippdealextra? I´ve seen that sippdealextra have a charge of GBP 20 + VAT per quarter but sippdeal doesn´t seem to have these fees. What more does sippdealextra offer to justify the fee of 80 Pounds?

Sippdealextra allows you to choose your own broker from a panel rather than use the house broker offered by Sippdeal plain vanilla, which charges quite high fees.An investor who doesn't trade much and wants a basic service will be better off with Sippdeal paying no fee.

But an investor who wants frequent and more complex trading opportunities will be better to choose a cheaper and more full service broker through Sippdealextra, paying the annual fee for Sippdeal to provide the pension admin.

It boils down to a question of matching charges to investment style.

DUS

Thank you, Ed!

Please allow me to follow-up with some more questions:

EdInvestor wrote: »

... rather than use the house broker offered by Sippdeal plain vanilla, which charges quite high fees.

With sippdealextra and selftrade, trading would cost a flat fee of £12.50 for everything but funds, for which, if I am not mistaken, there is no trading fee in your sippdealextra SIPP.

For Sippdeal, purchase fees vary between £9.95 and £30. Investing between £500 - £2000 would result in only a slight difference in fees of £2.45 (14.95 vs 12.50). For the £92 annual charge at sippdealextra (£80 + VAT), you would have to make quite a lot of trades to justify the annual charge, Or am I missing the key point here?

EdInvestor wrote: »

But an investor who wants frequent and more complex trading opportunities ...

What do you refer to when you say "more complex trading"?

EdInvestor wrote: »

... will be better to choose a cheaper and more full service broker through Sippdealextra, paying the annual fee for Sippdeal to provide the pension admin.

You mean, paying the annual fee for sippdealextra, don´t you?

Last but not least, I´ve tried to find a complete list of international shares you can by via sippdeal and sippdealextra but haven´t found that list on their websites. If anyone has seen such a list, could you please provide me with a link? Thank you!

Cheers!

DUS

EdInvestor

DUS wrote: »

With sippdealextra and selftrade, trading would cost a flat fee of £12.50 for everything but funds, for which, if I am not mistaken, there is no trading fee in your sippdealextra SIPP.

Funds would be subject to Selftrade charges.

For Sippdeal, purchase fees vary between £9.95 and £30. Investing between £500 - £2000 would result in only a slight difference in fees of £2.45 (14.95 vs 12.50). For the £92 annual charge at sippdealextra (£80 + VAT), you would have to make quite a lot of trades to justify the annual charge, Or am I missing the key point here?

For comparatively small amounts, and especially since Sippdeal introduced the lower 9.95 fee, Sippdeal looks competitive. For bigger trades it doesn;t.

What do you refer to when you say "more complex trading"?

Forex, CFDs, some international shares etc.

everylittlehelps_2

After some looking around for a good SIPP, I have shortlisted H-L & AllianceTrust (didnt like sippdeal & xtra online interface)

H-L
Pro
No dealing charges on Funds (UT, OIEC)
Good discounts on entry fees for funds
Cons
High dealing charges for shares, ETF, IT

Alliance Trust

Pro
Flat dealing charge of £12.50 for shares, ETF, IT etc
Good discounts on entry fees & annual maint for funds
cons
I was told on the phone that there is a dealing charge of £12.50 for funds like UT, OEICs etc Is this true? From my understanding H-L doesnt have this charge

Which one to choose guys?
Help is highly appreciated. Thanks

EdInvestor

The cheapest always seems to boil down to what you plan to invest in.

UTs/Oeics, regular investment and lump sums: H-L

ETFs/ITS: reguklar investment: Sippdeal extra with Selftrade (1.50 dealing charge for reg conts)

Shares/ITs/ETFs/ funds: infrequent dealing Sippdeal

Shares/ITs/ETFs/funds: frequent dealing Sippdealextra with Selftrade

Alliance Trust has recently changed its offering and is now better value for fund investment than H-L on portfolios above around 70k.