Best discount broker for Monthly ISA investments

cheggers

I am wanting to invest £50 a month in a stocks and shares ISA.

Which are the best discount brokers to go with.

I don't want to use an IFA and line his pocket as I know which funds I want.

I want some of the commission coming back to me.

Extractthecash

Could I suggest a good starting point would be the Discount Brokers listed in the Provider A - Z, which uses find, direct link:

http://www.find.co.uk/investments/discount_brokers_&_fund_supermarkets/

You will need to see which ones suit you personally, i.e. do you want one that recommends funds, gives good rebates,or provides a personal service etc..

Think you get what you pay for. Also be careful that some brokers may have enhanced terms with certain providers or products, so it does pay to shop around if you know exactly what you want..

Hope that helps a bit...

cheggers

I am wanting to go with Standard Life Select Propety fund, who offers the best discount on charges. Fiedelty can do 2% instead of 5% on the initial charge.

dunstonh

cheggers wrote:

I am wanting to invest £50 a month in a stocks and shares ISA.



Which are the best discount brokers to go with.



I don't want to use an IFA and line his pocket as I know which funds I want.



I want some of the commission coming back to me.

Bit of a contradition there. You want to use a discount IFA but dont want to use an IFA?



The term discount broker isnt a real term. As Carnet says, discount brokers are IFAs (or potentially any advisor class) that offer discounted terms. As that includes virtually all IFAs in the country, you are looking at a pretty long list.



As it happens, I can find that fund on a 1.5% initial charge basis making it 0.5% cheaper than Fidelity. Wont be of much use to you though as you need to use an IFA to get that.

cheggers

I am confussed when I looked at hargreaves lansdown link It says 4.50 intial charge, no mention of 0.5 initial charge

dunstonh

Looks like HL have negotiated special terms with Standard Life. You often get that with IFAs and insurance companies. You can go to one IFA and get one deal and go to another and get different terms. Although it is less common with the fund houses. That is reflected in the other HL prices for comapnies like Gartmore, Invperp etc where there is little or no difference.

However, SL are not rebating the full 0.5% p.a. They dont appear to do much rebating on many funds. So its probable that the terms they negotiate allow for a cheaper initial charge at the expense of lower fund based trail.

cheggers, the 4.50% is the saving on the initial charge, not the initial charge.

Out of interest, why Standard Life Property and not say, Britannic Property which has lower charges and is very similar and has a small headstart over SL?

EdInvestor

cheggers wrote:

I am confussed when I looked at hargreaves lansdown link It says 4.50 intial charge, no mention of 0.5 initial charge

Quite agree, it's very confusing.You could also argue that it's mathematically wrong.HL should change it.

cheggers

dunstonh wrote:

Looks like HL have negotiated special terms with Standard Life. You often get that with IFAs and insurance companies. You can go to one IFA and get one deal and go to another and get different terms. Although it is less common with the fund houses. That is reflected in the other HL prices for comapnies like Gartmore, Invperp etc where there is little or no difference.

However, SL are not rebating the full 0.5% p.a. They dont appear to do much rebating on many funds. So its probable that the terms they negotiate allow for a cheaper initial charge at the expense of lower fund based trail.

cheggers, the 4.50% is the saving on the initial charge, not the initial charge.

Out of interest, why Standard Life Property and not say, Britannic Property which has lower charges and is very similar and has a small headstart over SL?

I like the look of the SL property fund as it only launch in Oct 2005, the unit prices are still pretty low (58p), the fund size is relatively small compared to Britannic so I see more room for growth, plus the unit price of Britannic is higher at £1.23 per unit, I don't see as much growth as this fund as been going a lot longer.

dunstonh

As carnet says, unit price has nothing to do with growth potential.

Another way of looking at it is that Standard Life have missed the boat with the the unit trust fund and a more established fund with a significant spread of properties across the industry types and around the country may be a better option than one just started out with a limited portfolio. With retail units and Govt offices being key properties, the other funds already have the bulk of those.

cheggers

Going with SL Property fund through Hargreaves Lawnsdown, 0.5 Intial charge instead of Fiedlety's 2% or even SL's 5 % if I went direct to them.