ftse all share tracker

psychic_teabag

fimonkey wrote: »

I haven't seen anyone here mention interactive investor. Why is that?

I moved my HSBC all shares tracker from H&L to my ISA with ii. I will be adding £200 every other month to it through their funds builder, which will cost me £1.50. No other charges (other than the AMC which is reflected in the unit price). Plus transfer before end of Feb and ii will give you 0.5% of the balance you transfer to them.

http://www.iii.co.uk/investing/funds/how-invest/funds-builder does indeed say it costs £1.50 to buy on the regular program. It presumably costs more for one-off purchases, and to sell.

There are several platforms offering funds without buy/sell charges, and which will rebate all of the initial charge and some or all of annual trail commission for managed funds, so the advantage of ii isn't all that clear. (Of course, those other platforms may start charging post-RDR.) For people buying every month, £1.50 per month isn't so different from HL's £2/month holding charge.

psychic_teabag

I still don't really understand iii's charges.... For HSBC tracker they have the initial charge as 0%. Is it possible that if you make one-off purchases, they're free, but if you use the regular-purchase service, it costs £1.50 ?

Their pricing model seems to be based on the initial charge : for most managed funds, they charge 1%, so £2 for £200. So clearly it's cheaper to use the regular purchase program for these. But if the initial charge is 0, the normal price is 0, and so the regular purchase program would be a bad idea.

Anyway, I'm probably missing something obvious, as usual.

premierfella

I'm with you psychic teabag! I was happily posting on fimonkey's thread yesterday thinking that I understood their fund charges, but their internet pages don't help to clarify things do they!

This page mentions "....we may [sic] sure you’ll only pay a minimal £1.50 charge for every shares purchase (usually £10)."
http://www.iii.co.uk/investing/funds/how-invest/funds-builder
Why are they making reference to a "usual" £10? Does that imply that they charge a flat fee for fund purchases as well, or is this entire paragraph hokum and irrelevant to fund purchases - i.e. actually doesn't apply to "Funds Builder" at all but only to the share "Portfolio Builder"?

There is no mention of a regular investment £1.50 charge in the "Charges" section, which I would expect if it applied to funds.
http://www.iii.co.uk/funds/?type=a2z

sabretoothtigger

You can send them a message asking.

premierfella

Already done and awaiting the response!

lvader

You pay the initial charge minus discount and that is it, here is an example of a trade I did a while back.

Trade Details
Trade Type:Buy
Trade Date:16-12-2011 09:25:47
Settlement Date:22-12-2011
Quantity:123.875200
Price:£7.992
Consideration:£1000.00
Commission:£0.00
Stamp Duty:£0.00
Initial Charge£9.99
Total:£1000.00


The fund appeared in my holdings list a day or so later showing 1% down.

jamesd

Yet they say there is a cost saving from the regular buys for funds. Almost as though they are charging both the disclosed initial fund commission and a dealing charge for both the normal and regular fund buys.

psychic_teabag

Was yours a regular purchase, or a one-off ? iii docs say regular purchases happen on the 23rd.

lvader

All my trades on iii have been straight forward buy now trades, £10 for shares, nothing for funds.

I'm pretty sure that although you can setup regular investing for stocks and funds the £1.50 only applies to shares.

Benefits of Trading with Portfolio Builder:

• Buy UK shares for just £1.50
• Choose how much to invest
• Change the amount you invest and when
• Invest with a regular or one-off payment
• Invest in shares, ETFs and Investment Trusts
• Available within your Investment, ISA or SIPP account
• Please be aware of the risks involved

psychic_teabag

The fee for funds is one of the things we're trying to figure out. You say nothing for funds, but you are being charged 1%. Whether you call it an initial charge or a buying fee, it's still costing you. It's not unreasonable that they might offer a discount for regular purchases of funds too.

The link to the funds-builder above does seem to imply that it might apply to funds too.