Low cost Stocks & Shares (Investment) ISAs: The Best Currently Available List!

Thinpo

Very helpful, well done!

koru

koru wrote: »

iii explicitly say that they rebate all trail and platform commission, but they rarely seem to give more than 0.64% rebate, so they seem to be receiving less than the 0.75% commission that you would expect.

I think I now know the explanation for this. On another thread, grey gym sock has pointed out that Interactive Investor uses the Cofunds platform. I had not previously realised this, because the underlying Cofunds “body" seems to be hidden by a tailored Interactive Investor skin. I have now found the following page which confirms that they are using Cofunds: http://www.iii.co.uk/funds-rebate-explained

It says that the rebate is:

• 100% of the trail commission we’re allocated from your fund’s AMC
• 100% of our share of the fund platform fee we’re allocated from your fund’s AMC

This is the first time I have seen any mention that they are only rebating their “share" of the platform fee. The rebate of 0.64% now makes sense, because presumably what is happening is that in cases where the platform commission paid by the fund to Cofunds is the standard 0.25%, Cofunds is keeping 0.11% and is passing 0.14% to Interactive Investor. They then rebate this 0.14% to the investor, together with the 0.5% trail commission, making 0.64% total rebate.

I think it therefore follows that there will definitely be some further fee changes at Interactive Investor, once platform commission is no longer allowed. Cofunds has I think already announced that it is switching to making a platform charge to the investor. Presumably it will insist on doing this with Interactive Investor, although perhaps it will be willing to give a discount, so that its fee is similar to the current 0.11%.

I wonder if there is a similar explanation for why ATS only rebates 0.5% on many funds, even though it claims to rebate all trail and platform commission? That is, perhaps their platform is also just a rebranded version of another platform, which keeps some of the platform commission? Therefore, ATS are only rebating the commission that they receive, as opposed to the total commission paid by the fund?

Special_Saver2

Interestingly, on that iii page they do not include a comparison with Fidelity via Cavendish Online.

SS2

koru

No, although they would come out better than Cav/FN on the fund they chose. Cav gives 0.5% rebate so the answer would be similar to ATS. Of course, if they had happened to choose, say, a Jupiter fund, they only give a 0.14% rebate (can't understand why it is so low), so the comparison would not look so rosy.

blue_eyes

early heads-up on iweb change.

I don't use them myself, but noticed that their charges have changed.

£25 ONE OFF (not annual) fee, so no longer free, but
£5 per trade ( both UK and international) including in isa accounts (and yes I know you can't put international shares in an isa) with some additional fees on international...
regular mo investments still £2

the £5 trade is currently on their front page, but their fees are at

http://www.iweb-sharedealing.co.uk/charges-and-interest-rates/charges-for-all-trading-accounts.asp

Special_Saver2

Hi blue_eyes,

Thanks a lot for the information. I have updated the entry on IWeb on the first page accordingly.

(and yes I know you can't put international shares in an isa)

I think you can put international shares into an ISA, you just cannot put foreign currency cash into an ISA according to HMRC rules. The International Investor website has a nice page comparing stock brokers with ISAs for people who want to trade international shares.

SS2

blue_eyes

No idea where i got that impression from -

thanks for the correction, SS2.

competitionscafe

Is there a list somewhere of Cavendish rebates? There is a search facility on their site to look funds up one by one but that is rather tedious and I was hoping for a full list of available funds, charges and rebates - like the ones for ii and Alliance:

Alliance: http://www.alliancetrustsavings.co.uk/pdf/list-of-funds.pdf
ii: http://static1.iii.co.uk/sites/default/files/Fund%20Rebates.pdf

(Perhaps these links can be added to the OP?)

By the way, from looking up a random selection of funds, ii had the highest rebate in almost all cases, Alliance was highest for a few and Cavendish was always 0.5% (but they charge no annual fees, so better for smaller portfolios).
eg:

(A=Alliance; i= interactive investor; C=Cavendish Online)

Axa Framlington UK Select Opp:
A= 0.750% C= 0.5% i=0.5%

Blackrock UK Special Situations:
A= 0.5% C= 0.5% i=0.64%

JO Hambro CM UK Opp:
A= 0.5% C= 0.5% i=0.64%

Old Mutual UK Select Smaller Co:
A= 0.875% C= 0.5% i=0.74%

Artemis Income:
A= 0.5% C= 0.5% i=0.64%

BlackRock UK Income:
A= 0.5% C= 0.5% i=0.64%

Threadneedle UK Equity Income:
A= 0.5% C= 0.5% i=0.64%

etc (all the others I looked up were also A= 0.5% C= 0.5% i=0.64%)

By the way, for a portfolio only consisting of investment trusts and/or shares Sippdeal probably came out best (as no annual charges -yet) and a £1.50 monthly dealing option which XO does not offer. But their rebate for funds was always lower than the 3 above - however if you had mostly shares/It's and only a small % of your ISA/SIPP in funds or in funds not paying trail commission they seem the best option?

For a portfolio containing a larger amount of funds, my conclusion was 2 seperate ISA accounts worked out cheapest/most cost effective - one with Cavendish (for funds) and one with Sippdeal (for Investment trusts, ETF's and shares) - until your portfolio got above a certain size (£50k to £60k?) when ii become a cheaper overall option. (At least if my calculations are correct, they may not be so dyor!)

grey_gym_sock

there are a lot of jupiter funds where iii have a much lower rebate, e.g.:

Jupiter Income
A=0.6% C=0.5% i=0.14%

so always worth checking the actual funds you want.

selftrade are comparable to sippdeal for holding shares/ITs. you can avoid the £10.50 (inc. VAT) quarterly inactivity charge by making just 1 monthly dealing investment; and monthly dealing costs £1.50 (though it's only available for a limited range of shares).

Special_Saver2

I cannot find a single page on the Cavendish website with all the charges - the only solution that I can see is to look up the funds one by one. I have now added links to the rebates pages as requested to the original post.

I will also mention that sippdeal have promised not to introduce any new charges or increase any existing charges until 2014 - see this page.

SS2