feedback on fund platforms please

deadpeasant

I have decided to put a few thousand into a few UTs, ETFs and/or investment trusts, and I'm comparing platforms. I'm not looking at ISAs or SIPPs as I'm sorted there, and I'm talking about lump sums, not monthly.

I've checked out Alliance Trust and Hargreaves Lansdown. It seems that A.T. rebates renewal commission of about 0.5% a year but charges £12.50 a deal, whereas H.L. rebates about 0.25% a year but has free fund dealing. So roughly every £2,500 invested in active funds on the H.L. platform costs about the same as one deal a year on A.T. Seems like H.L. wins out with low-charge funds like HSBC passive funds, but A.T. wins out with everything else: active funds, ETFs, investment trusts (and shares, if I decide I want to branch into those).

I also tried checking Interactive Investor. Their deals are slightly cheaper than A.T.'s (£10) but I'm not finding it that easy to see whether they rebate renewal commission. Their fund charge page says they're "transparent and competitive" but looks like you have to check individually for every fund. I tried First State Global Resources, and their TER is higher than H.L.'s for that fund. There may be something I've missed?

If anyone has the time to give feedback I'd appreciate it. Again, I'm not currently looking at SIPPs, ISAs or monthly investing.

rockitup

I have also just opened an account with Alliance Trust a few weeks ago for their rebates, if you deal size is over £5k, you make the £12.50 charge back in one year. Also some of ATS rebates go to 0.875% so if that is applicable to your choice of fund even better.

As your portfolio grows (hopefully) over the years, the rebates bring in more and more lolly to fund further purchases so that is where ATS come in handy.

I have been with HL for some 12 years now and I will still keep that account with some holdings as they do have a decent platform and it is handy having a back-up anyway.

deadpeasant

Thanks rockitup. Why did you wait so long to switch (partially) to A.T.?

Do you know the Interactive Investor rebate situation? If no one knows, I'll phone them tomorrow.

dunstonh

FSA paper on platforms is now reported to be just days away...

TERs may take different dates as snapshots. So, small differences may be down to that. Whilst the AMC tends to be stable, the TERs can be updated very 3-6 months.

jimjames

The best option will depend on the mix of UT/ETF/IT you are holding. I have both AT and HL accounts and find the HL is far easier to actually use.

The actual savings/costs of each option will depend on the value and mix of your holdings so only by plugging those into a spreadsheet will you get a figure which may vary once the RDR is implemented anyway.

rockitup

deadpeasant wrote: »

Thanks rockitup. Why did you wait so long to switch (partially) to A.T.?

Do you know the Interactive Investor rebate situation? If no one knows, I'll phone them tomorrow.

I hadn't really bothered checking on how much difference the total rebates for the 2 platforms over 10 years would be. I did have a quick look at Interactive Investor but don't think AT can be beat when the funds portion of your portfolio reaches a decent size. It is only in last 2 years that I have moved a lot from cash deposits into my HL account

deadpeasant

jimjames wrote: »

The actual savings/costs of each option will depend on the value and mix of your holdings so only by plugging those into a spreadsheet will you get a figure

Exactly, that's why I want to know what trail commission to factor in, since over the years it can add up to hundreds or even thousands. Just phoned Interactive Investor and they don't rebate any trail commission.

jimjames wrote: »

which may vary once the RDR is implemented anyway.

Sorry, what's RDR?

noh

deadpeasant wrote: »

........................................................................................
Seems like H.L. wins out with low-charge funds like HSBC passive funds, but A.T. wins out with everything else: active funds, ETFs, investment trusts (and shares, if I decide I want to branch into those).

.

ATS do offer the Vanguard range of funds if you need low cost passive.

https://www.vanguard.co.uk/uk/portal/Funds/funds-and-documents.jsp?kw=funds&gclid=CLq7wJebjaoCFfMJtAodXHs0xg

noh

deadpeasant wrote: »

Exactly, that's why I want to know what trail commission to factor in, since over the years it can add up to hundreds or even thousands. Just phoned Interactive Investor and they don't rebate any trail commission.

Sorry, what's RDR?

RDR see:-
http://www.fsa.gov.uk/pages/consumerinformation/product_news/saving_investments/investments_changes/index.shtml

dunstonh

noh wrote: »

ATS do offer the Vanguard range of funds if you need low cost passive.

https://www.vanguard.co.uk/uk/portal/Funds/funds-and-documents.jsp?kw=funds&gclid=CLq7wJebjaoCFfMJtAodXHs0xg

Vanguard is cheaper but net performance compared to other trackers is not as good. So, tracking error may be an issue.