Cavendish Online

buffman

A very informative article in today's Daily Mail

http://www.dailymail.co.uk/money/investing/article-2090703/Anger-grows-rip-fund-charges-80-investors-greater-clarity.html

on 'rip off' fund mangagement charges mentions Cavendish Online 'as leading the pack when it comes to low-cost investing.' Not only do Cavendish rebate 100% of the initial charge when investing into a unit trust ISA but you also receive 100% of the renewal (trail) commission directly into your bank account.

I have just completed a lengthy conversation with one of their customer representatives and have learned that for £0 I can transfer the agency on all my past holdings in Fidelity Funds Network to Cavendish and receive the trail commission going forward paid directly by Fidelity into my current account.

All this seems too good to be true. Has anyone had any experience with Cavendish?

talexuser

Yes, used them for a couple of years for my CoFunds stuff transferred from a previous intermediary which only paid 50% of the trail commission. Very satisfied.

Reaper

We use them too. I would describe tham as "no frills". Don't expect too many more long phone calls as they make very little money out of each customer. However that is fine by me, I would rather have the money than my hand held.

P.S. I stared a thread seme time ago about the best investment choices as at the time everybody was favouring HL for fund investing but I facied Cavendish.
https://forums.moneysavingexpert.com/discussion/2721443
Note that since that thread ended HL have increased their charges.

barak

buffman wrote: »

.....I have just completed a lengthy conversation with one of their customer representatives and have learned that for £0 I can transfer the agency on all my past holdings in Fidelity Funds Network to Cavendish and receive the trail commission going forward paid directly by Fidelity into my current account.

All this seems too good to be true. Has anyone had any experience with Cavendish?
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For £0 ? They do charge a £25 fee per account transferred [e.g. ISA, Non-ISA] - don't they?
http://www.cavendishonline.co.uk/why-cavendish-online/faq-s/

property.advert

Waiting for the IFAs to chirp in with statements on how they can do all this and more for far less cost.

rockitup

Cavendish are very good value, also Alliance Trust Savings if making lump sum purchases of £5k or more per fund. Alliance charge £12.50 per deal but their rebates are higher on a lot of funds so good for those with large portfolios.

Beware though of when the new rules come into place banning commission rebates, there will be numerous changes I reckon.

buffman

barak wrote: »

For £0 ? They do charge a £25 fee per account transferred [e.g. ISA, Non-ISA] - don't they?

This initial set-up fee is being waived until 1 Feb.

westy22

I have used Fidelity FundsNetwork through Cavendish for several years with no problems at all - the rebate appears in my bank account every 3 months as regular as clockwork. I have had almost £1,000 rebated to me in the past 4 years - this is for both ISAs and non-ISA accounts. I also have several tracker funds within my accounts but of course there is no rebate from those holdings.

dunstonh

Waiting for the IFAs to chirp in with statements on how they can do all this and more for far less cost.

Cavendish are IFAs.

oldfella

used them for many years - very happy - the rebate comes direct from Fidelity now

dunstonh

Just remember that in less than 12 months, trail commission stops on new purchases. So, if you have a small amount, the cost of transfer and set up with Cavendish could be more than the trail you save over that 12 months.

around 12 months after that, bundled platforms are expected to be banned. So, the current cofunds and fidelity platforms will no longer be compliant for new business. Explicit charging will then be the norm. Both Fidelity and Cofunds have stated their intention to launch unbundled platforms. That wont be an issue if you are the type of person who doesnt switch funds and doesnt make ongoing ad hoc contributions as purchases made before the changes can stay on the old system. it only applies to new purchases (including fund switches) - caveat is that the rule changes are not cast in stone yet and it is possible the FSA will U-turn. However, it is unlikely they will as the Consumer Panel thinks the current method is not fair on consumers and the FSA doesnt like commission or hidden payments. So, allowing bundled platforms to use a hidden commission to fund them is unlikely to be allowed to continue.