Which platform for investing ETFs

sKiTz-0

Hi all,

Bit of a newbie question, but I am looking to open an account somewhere to use for investing in a couple of commodity funds.

I will probably be looking at a low volume of trading, although with an initially small float so would still need to benefit from the lowest price per trade I can.

So far iii and x-o are looking to be the best, though x-o are limited to UK equities. Although I don't want too much exposure to currency fluctuations, a couple of the ETFs I am interested in aren't on the LSE, I would probably like the flexibility in future to have a percentage of my investments on foreign funds.

Does anybody have any opinions/experiences they could throw into the mix for me to read up on?

Thanks in advance.

sKiTz

DavidHayton

Hi

TD Waterhouse will allow you to trade on several overseas markets, and hold foreign currency in your account. I have always been impressed with their customer services.

That said, they are not the cheapest.

David

sKiTz-0

Thanks, will read up on them when I get in from work later today.

Any more opinions anyone?

JamesU

sKiTz-0 wrote: »

Any more opinions anyone?

TD Waterhouse, or possibly Interactive Brokers (but have not tried either).

Exchange traded fund providers

TD Waterhouse

Pros:
-comply with W8-BEN (reducing US witholding tax if relevant)
-access to 7 international exchanges
-foreign currency accounts available (at least in non-ISA)

Cons:
-bit more expensive for trades, UK and international at £12.50/trade
-care: cost to purchase US and CAN etfs in ISA and non-ISA (online vs telephone, posts#12,14)
-care: FX rates on funding international purchases (post #14)
-check cost for phone call orders (if etf available to buy, but not listed with provider online)
-check annual charge for holding account
-check fee charge if there is less than £5K in account (cash+stock) and 3mths inactivity (post#7)


i-Dealing

Pros:
-£9.90/trade for international (NYSE, TX, Deutsch-Boerse)
-can access LSE, US, Canadian and German exchanges (and other EU access)
-no inactivity fees
-£9.90/trade for all UK and international
-£9.90/trade for phone orders if required
-good customer service on any queries

Cons:
-no formalised W8-BEN (but probably would comply on request)
-£20/yr annual fee
-trading site only


iii (Interactive Investor)

Pros:
-very often recommended on thread as to reduce trading costs on smaller purchases (but have not tried them)
-portfolio builder service for regular £1.50/trade purchases, £10ish on sale. Sounds very good for cost averaging and smaller purchases
-no account fees
-no inactivity fees (post#8)
-trading site, website information and discussion forum

Cons:
-restriction on timing of purchase if buying at budget £1.50/trade
-care: check if etfs from US can be purchased at £1.50 aswell as UK and EU through the portfolio builder
-check range of etfs available internationally
-check for access to NYSE and TX/TX-venture in particular if specialised commodity or mining


Most etfs are accessible from a combination of LSE, NYSE, TX and DB exchanges.

Generally speaking a lot of etf commodities available on LSE and international coverage not always required. But if required, NYSE and (possibly) TX/TX-venture important for you to have.

Have used i-Dealing for a long time, excellent service. But based on your requirements (low float/reduced trade costs) maybe check the "cons" on iii.

Halifax?
Interactive Brokers?
SharecCentre?
SelfTrade?
Others?

JamesU

sKiTz-0

Very thorough answer thanks James

JamesU

sKiTz-0 wrote: »

Very thorough answer thanks James

No probs, did not have access to my bookmarks earlier. On your general question, if using NYSE $ etfs read (i) and (ii). Other OP experiences with etf providers in (iii). Pointers on etf sourcing in (iv).

(i) check etf distributor status at the provider first, explanation here:
http://www.etf.db.com/UK/ENG/Pages/519/519.html&stinvestortyp=privinv&strdisclaimerleverage=&strdisclaimereonia=&stinvtyp=&innewsnr=67
http://uk.ishares.com/en/rc/stream/pdf/false/publish/repository/documents/en/downloads/brochure_distributor_status_and_uk_reporting_status_of_ishares_en.pdf


(ii) and reasons when to consider W8-BEN explained here:
http://www.candidmoney.com/questions/question234.aspx


(iii) some previous links on OPs experience with etf providers other than TD/i-dealing/iii here:
https://forums.moneysavingexpert.com/discussion/comment/38498412#Comment_38498412
https://forums.moneysavingexpert.com/discussion/comment/33863441#Comment_33863441


(iv) "How do you find and choose etfs" here:
https://forums.moneysavingexpert.com/discussion/comment/39005064#Comment_39005064........

For choosing etf asset allocation, portfolio diversity and some of the main etf providers, this book can be considered essential reading:
http://www.amazon.co.uk/Financial-Times-Guide-Exchange-Traded/dp/0273727834/ref=sr_1_1?ie=UTF8&qid=1291296781&sr=8-1

Screens such as below for searching full range of etf providers and etfs:
http://www.trustnet.com/
http://etfdb.com/screener/
http://www.etfexplorer.com
http://www.indexuniverse.eu/europe/data.html

Research etfs of interest on the etf provider websites:
e.g. Ishare, dbx-tracker, lyxor, etfs, powershare etc etc based on what providers are chosen in the screens above.

Supplement research with keyword etf searches for articles/reviews etc:
http://seekingalpha.com
http://www.morningstar.co.uk
http://www.investorschronicle.co.uk/
http://www.iii.co.uk/


Enjoy the reading.

JamesU

DavidHayton

JamesU wrote: »

TD Waterhouse

Pros:
-comply with W8-BEN (reducing US witholding tax if relevant)
-access to 7 international exchanges

Cons:
-expensive for international (£15/trade from memory, check)

TD charge £12.50 for online international orders, same as for LSE orders.

JamesU wrote: »

-expensive for phone call orders (if etf available to buy, but not listed with provider online)

When this has happenned to me, TD have honoured the on-line rate over the phone

JamesU wrote: »

-check annual charge for holding account and any inactivity fees

Yes, you need to watch this. If there is less than £5k in your account (stock + cash), you will be charged a fee if you don't trade during a three-month period.

David

yorkiebar

iii have no annual fee or inactivity fee.

JamesU

DavidHayton, Yorkie, thanks for the input and accuracy have updated accordingly.

From memory there was a difficulty quite some time back with online US etf trading at TD Waterhouse and requirement to place more expensive phone orders. Would be useful if somebody could confirm whether or not this is still the case.

If any other OPs want to add info or to the provider list above (Interactive Brokers, Halifax, Sharecentre etc) just post and I will change/collate above list.

JamesU

Nikel

I'm with Halifax and these are their charges:
http://www.halifax.co.uk/sharedealing/charges/administration_charges.asp
http://www.halifax.co.uk/sharedealing/charges/share_dealing_charges.asp

JamesU

Nikel wrote: »

I'm with Halifax and these are their charges:

Thanks Nikel. Trying to keep it focused on a general overview on etfs on this thread, UK and international trading and costs for services, experience of pros and cons with using etfs at the provider. etc. And sKiTz had better open an account after all of this and report back.

JamesU