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H-L introduces a Tracker Platform Charge
Comments
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From the Hargreaves Lansdown Vantage Terms and Conditions (ISA section):C9 - Withdrawals, terminations, transfers and Death
Upon receipt of your written instruction (and within the time frame specified by you - which may not be less than 30 days) all (or part) of your account shall be transferred or paid to you or another ISA or Junior ISA Manager. Generally we shall complete your instructions within 30 days, occasionally it may take longer to complete due to factors beyond our control. Transfers will take place in the form of cash. Transfers as stock may be allowed subject to our discretion. The fee for transferring as stock is £25 (+VAT) per holding.
And in respect of Vantage Fund and Share accounts:B2 - Withdrawals
Withdrawals from the account by cheque will be made payable to the first named holder unless otherwise
requested. Withdrawals and transfers will take place in the form of cash. Transfers of stock (equities or funds) to another manager or into your own name may be allowed subject to our discretion. A fee of £25 (+VAT) for each
stock transferred will be payable for this service from your account.
To re-register out (and avoid being out of the market) costs £30 per holding then.
Transferring out in the form of cash will necessarily mean being out of the market (and quite possibly for some length of time), which could lead to either a profit or a loss depending on (potentially volatile) market movements.0 -
Alliance Trust charge £25 per year to hold an ISA so I'm planning to move to them. I prefer the HL platform but as I have most of the HSBC trackers I'll be paying far more to hold those with HL in future.
BestInvest are cheaper at £50+VAT pa, have all the Vanguard trackers (including EM and small cap), all the HSBC trackers (which might not trigger the £50?), and a low-TER Blackrock global property securities tracker.
Dealing fees are also very low as long as you have £50k with them, and this can include all your accounts including those of family members.
I've also looked at Fidelity, Alliance Trust, Interactive Investor, and a few others.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Stochasticity wrote: »Transferring out in the form of cash will necessarily mean being out of the market (and quite possibly for some length of time), which could lead to either a profit or a loss depending on (potentially volatile) market movements.
Ignoring markets movements, doesn't selling and rebuying mean losing the spread between bid and offer prices, which could be significantly more than the cost of re-registering on a large holding? In other words, there is no way around this problem unless/until the RDR makes free re-registering compulsory.gadgetmind wrote: »BestInvest are cheaper at £50+VAT pa, have all the Vanguard trackers (including EM and small cap), all the HSBC trackers (which might not trigger the £50?), and a low-TER Blackrock global property securities tracker.
At present, Bestinvest don't have the BlackRock property tracker. I'm waiting for a response from them on whether they can add it, but I'm not particularly optimistic, because they don't offer any of the other low-cost BlackRock CIF trackers either. Still, HL have it and not the other trackers, so we'll see.0 -
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saveonarola wrote: »At present, Bestinvest don't have the BlackRock property tracker.
http://www.bestinvest.co.uk/investment-research/fund-research/fact-sheet/brgpseta/blackrock-global-property-securities-equity-tracker-a/overview
Or did you mean a different one?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
saveonarola wrote: »
Yup, he got nearly all his info from comments on another thread, including a few from me.
http://monevator.com/2011/10/31/buy-index-funds-for-simplicity/I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
saveonarola wrote: »Ignoring markets movements, doesn't selling and rebuying mean losing the spread between bid and offer prices, which could be significantly more than the cost of re-registering on a large holding? In other words, there is no way around this problem unless/until the RDR makes free re-registering compulsory.
Without checking I expect that most of the funds affected by the introduction of the monthly charge will be those funds (e.g. index tracking funds) with no bid-offer spread, so in simple terms should be no additional cost through the bid-offer spread, just fluctuations through market movements and costs through time out of the market.
Even though there is no bid-offer spread the single price at which you can buy or sell can be affected by whether the fund is priced on a bid or offer basis (broadly depends on whether more people are buying into the fund or selling out of the fund on a day) but as long as this doesn't change between selling and buying this should have a neutral affect.
So we are talking broadly market movements and time out of the market.I came, I saw, I melted0 -
saveonarola wrote: »In other words, there is no way around this problem unless/until the RDR makes free re-registering compulsory.
The HSBC trackers don't have up-front fees or spreads, so they are easy to move.
The signs are that RDR will force platforms to offer cheap/free transfers, and one source I saw said that was coming in at the start of next year.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »
Wow - either that was there all along, and I missed it, along with both of the advisers I spoke to in the last couple of weeks, or they've just added it because of my request. I hate to say it, but I suspect it might be the former. The Bestinvest website doesn't help, because there are two tools for searching for funds, and this one shows far fewer funds than this one.
Anyway, according to the second search tool, they do have all of the other cheap BlackRock trackers as well. So sorry for that bit of dodgy info. And a little bonus is that the BlackRock property tracker has what I imagine is the non-commission TER of 0.55%. Of course, this means presumably that it attracts the £12.50+VAT quarterly custody charge, but if you're already paying that for other funds, it's a non-issue.
Edit: I've just noticed that on the Bestinvest website the BlackRock property tracker has an 'additional bid/offer spread' quoted of 0.27%. What is that?0 -
saveonarola wrote: »Wow - either that was there all along, and I missed it, along with both of the advisers I spoke to in the last couple of weeks, or they've just added it because of my request.
I guess the critical thing is whether they let you buy it! If you ask about SIPP, please also check ISA, and vice versa.
It is all a bit mad, and I know not why.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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