Moneyspider

cheerfulcat

So you are saying that HL offer a full advice service on the same terms as their execution only service?

If thats the case, why both doing execution only with them?

No, I'm saying that HL are *not* simply execution only.

dunstonh

No, I'm saying that HL are *not* simply execution only.

Thats what I thought. However, we were discussing them in their execution only distribution channel on this thread. Not the advice side. I think someone earlier got confused as to what "execution only" means. Mistaking the only bit to mean they only do xxxx.

cheerfulcat

OK, but in an earlier post you seemed to imply that HL *only* does execution-only

HL are IFAs. The term broker is not really correct when all they are doing is execution only business.

It's easier face-to-face, isn't it? :-) It's too easy to misunderstand postings.

dunstonh

It's easier face-to-face, isn't it? :-) It's too easy to misunderstand postings

LOL. I know what I meant when i typed it.

Flash_Gordon_2

Why is it that everything has to be too good to be true!?

If you invest in a Fund direct or hold it in your ISA tax-free wrapper, most fund management companies have allocated a sum from your investment for commission. If you have an adviser, it's paid to them. Sometimes the fund management company doesn't pay out commissions, and those are the funds advisers tend not to recommend. Surprise! Either way, most fund management companies make an allocation for commission from your investment, whether it's paid out or not. If it isn't paid out, it doesn't necessarily mean that your investment is worth more.

If you sign up with the Moneyspider chaps, all that happens is that your funds are registered at Moneyspider's website, and that automatically reroutes any commission from your adviser, if you have one, to Moneyspider. So their service doesn't cost you anything extra.

If you've got a great adviser, great - you probably wouldn't need Moneyspider - but too many people haven't. Many advisers take the commission and hardly ever communicate with their clients. And sometimes that's understandable. If you had £20,000 invested, the annual commission paid to your adviser would be a maximum £100. How many advisers are going to go out of their way to give you advice on your investments for that?

No system is perfect, but the Moneyspider chaps provide a 24/7 service where you can log on and see how your funds rate against others in their sector. You'll be able to see whether you need to move your money. You're getting more information than you get from most advisers.

Why isn't that a good deal?

biggerpigger

I have a number of funds which I have bought via the Fidelity website. This does mean that they are all held in the same place and it is easy for me to view them all. Additionally, Fidelity provides information on many other funds and allows you to look at historical data and search on different criteria such as sector, region, etc.

I am interested in using the moneyspider site and I like the comparison tool that it offers (of course I could do this manually but why bother if somebodycan do it for you). Can somebody explain what will happen to my Fidelity account if I sign up for Moneyspider i.e. will it no longer exist as moneyspider has taken over the managment of my funds? Or will I just be able to look at my funds via two websites?

Also, is there any penalty from Fidelity if I do allow moneyspider to look after my funds?

Any advice gratefully received

janmack

I have 3 different ISA's which I signed up for via discount brokers (not HL) and if my memory serves me right, they sent me cheques for the commission refunded.

I have the forms for signing up with moneyspider but according to one of the posts on this thread, I will lose out as I used discount brokers. Does this mean they will take money from my funds?

Sorry for the non-financial jargon! I just thought by using moneyspider it sounded like saving a lot of 'legwork' rather than trawling round the different resources. My brokers have done nothing since the initial signing up.

Advice please..... and thanks.....

Jan

dunstonh

My brokers have done nothing since the initial signing up.

Of course they havent. They are discount brokers and because of that, they dont service the plans. If you wanted servicing you need to choose a provider/advising firm that does that.

I have the forms for signing up with moneyspider but according to one of the posts on this thread, I will lose out as I used discount brokers. Does this mean they will take money from my funds?

You could easily find increased costs with moneyspider than some discount brokers. I did some research for a forum member recently and found that the four biggest fund supermarkets all had pros and cons with their charges. One had hardly any initial charges but charged on fund switching, whilst others did not. Some had same day switching, others did not. Some allowed regular withdrawals, some did not, some charged on moving unit trusts into ISAs, others did not. Some had free annual rebalancing, others did not.

Do not fall into the trap of just looking at the headline charges only to find a service you need now or in the future is not available or if it is, if it costs you more.