Best platform to buy Investment Trusts

SteveSilva

HI guys

It seems that buying into Investment Trusts is a good way of investing in markets around the world. This can be done within an ISA, so which platform do people use to buy IT's. I have read that H&L are quite expensive in regards to ITs.

cloud_dog

SteveSilva wrote: »

HI guys

It seems that buying into Investment Trusts is a good way of investing in markets around the world. This can be done within an ISA, so which platform do people use to buy IT's. I have read that H&L are quite expensive in regards to ITs.

ITs trade as stocks, soooo just find the best (?) S&S ISA.

JamesU

Ahhhhnd, this thread by special_saver2 is a good place to see overviews on S+S ISAs:
https://forums.moneysavingexpert.com/discussion/comment/42607054#Comment_42607054

Nice discussions on ITs here too:
https://forums.moneysavingexpert.com/discussion/2944500

JamesU

Totton

Hi,
I hold my IT's with Hargreaves Lansdown, they are free to hold in a fund account but if in an ISA they do charge 0.5% (max £200) as an annual fee which is taken out monthly. Despite this I keep them with HL as I have found HL to be very efficient, friendly and helpful. e.g. ensuring my vote gets to the board despite IT's being held in a nominee a/c

Other places to hold IT's in an ISA will probably be cheaper, typical places I read of are Alliance Trust & Savings, iii etc. This is probably a good question to ask over at the Investment Trust board of Motley Fool.

HTH,
Mickey

atush

I use savings plans with the individual trusts in most cases, and it is Drip Feeding as well.

I have bought some such as Eastern European Trust in an online broker acct though as it is a share like any other.

ermine

if in an ISA they do charge 0.5% (max £200) as an annual fee which is taken out monthly.

As a point of curiosity, why do you choose to pay 0.5% (capped at £2400 p.a) extra on your ITs when you don't need to?

That sort of thing adds up over time and hammers your investment return - the power of compound interest working for HL and not for you.

I've got nothing against HL but it kind of hurts to pay out where other providers don't charge. You can have more than one S&S ISA (not in any one tax year, but opened in successive years) so why not hold the items in HL where HL's value add makes a difference and in somewhere cheaper for your ITs to get the full benefit of the money you put in ITs?

Reaper

HL's dealing charges are also on the high side. For example on a £500 - £2000 investment they charge £14.95, but you could do it for £5.95 at XO (and there are even cheaper alternatives).

kidmugsy

We've been pretty happy with an S&S ISA with Alliance Trust Savings. Other investment trust savings schemes have been praised by other commenters here e.g. Aberdeen.

jimjames

If you buy your IT from the fund manger savings scheme the costs are generally amongst the lowest you can get.

SteveSilva

So when you buy direct from the fund manger savings scheme, would that still be under an ISA and can you always make monthly payments, or does that work out too costly?

atush

That's why I do it (plus the wonders of Pound Cost averaging)