Generating an income from large lump sum

jamesd

gadgetmind wrote: »

Very few platforms charge such a fee.

None in the HL Fund and Share account for example, nor any fee to hold any specific investment.

gadgetmind

jamesd wrote: »

None in the HL Fund and Share account for example, nor any fee to hold any specific investment.

That's where we hold most of our unwrapped shares. They "dematerialise" for free, and don't even charge for transfers to spouse's nominee accounts and waive dealing fees for "Bed and ISA".

Neither are there charges for withdrawals of cash unless you're in a hurry.

Their dealing fees are quite high though at £11.95, so I never buy in chunks of less than £2k and I trade very infrequently.

srcandas

gadgetmind wrote: »

Their dealing fees are quite high though at £11.95, so I never buy in chunks of less than £2k and I trade very infrequently.

Same here at £2000 you're on average just under 2% for a buy, a sell, stamp and spread (on common shares).

I had thought if over 10 trades you went down to £5.95 next month but now see it goes down to £8.95. I'm on 8 this month and tempted to trade just to get a better rate next month. Crazy I know

But hl suit me fine. When I move my much bigger funds into single share trading I'll certainly be using them - unless their charging radically changes when the new structures come into place.

Tried cheaper platforms but don't like lack of web site security even if the risk is small.

Like the OP I need an income and I can't afford to lose my capital so security is important.

gadgetmind

srcandas wrote: »

Same here at £2000 you're on average just under 2% for a buy, a sell, stamp and spread (on common shares).

Yup, which is unthinkable for short term trading, but there are better ways to make these kinds of trades. My strategy is (nearly) always LTBH and I therefore completely ignore selling costs.

Glen_Clark

jamesd wrote: »

The range column is deal value so yes it appears to be a drop for the whole trade when the size passes a threshold. Easy enough to phone them to check before you ask for a discount elsewhere.

Yes, I agree that a trade size of £24,000 isn't very small, I was thinking of 2.5% vs 1% plus £20 where HL would be ahead by 25p at a £1350 deal size. Having worked it out I wouldn't describe that as very small either, just small.

Just phoned them and, as I thought, its the first £10,000 at 1%, the next £10,000 at 0.5% etc. Otherwise you would have the ridiculous situation where a £10,000 deal costs £100, and a £10,001 deal would cost £50 (plus half a pence)
So, as I thought, the deal would have to be over £24,000 to make Hargreaves Lansdown cheaper than Skipton. Up to £24,000 I can't seem to get a better deal on Certificated trading (guaranteed one off charge) than about 2.5%?

Glen_Clark

gadgetmind wrote: »

Very few platforms charge such a fee.

The stockbroker I was with wrote to me to tell me they were introducing Crest with no charges. I looked at the terms and conditions, which seemed to take away my rights and give them the right to do what they want including introducing charges once they had my shares. So I ignored it. A few years later I noticed they had indeed introduced quarterly charges, and an exit charge for getting your shares out. So I was glad I had kept mine in certificated form.
It costs them money to maintain Crest accounts. How long can you expect them to do it for nothing? Seems to me just a typical financial services trick to start it up as a loss leader, sign people up when its free, then introduce the charges when they have got them locked in.
I don't find keeping certificates a pain because I don't have to do anything with them. I am very wary of recurring charges because they can add up to a staggering amount over the 40 years or so saving for a pension. I would rather pay once, as in certificated shares, and be done with it. Also in keeping the certificates myself no broker has any hold on me, so I am completely free to seek out the best deal when I want to trade.

srcandas

gadgetmind wrote: »

Yup, which is unthinkable for short term trading,

Something I'm becoming more and more convinced about, for me in these unsettled times, is that 'time' is not relevant. By that I mean when I buy a share I have a percentage gain in mind. If that gain occurs in one hour then I take and run (all things being equal). If I need to wait a year or two (all things being equal) then so be it.

My trial fund (£7000) I started Jan 1st has gone up almost 9% on a falling market and is currently 100% cash.

I guess when the markets are rising my strategy may well have to change but for now it is working - or possibly I've just been lucky.

But I will look to reduce my trading costs to less than 1.25% buy/sell/stamp/spread soon

:beer:

jamesd

Glen_Clark wrote: »

Just phoned them and, as I thought, its the first £10,000 at 1%, the next £10,000 at 0.5% etc.

Thanks. I called and asked them to change the description so it didn't suggest that the pricing was based on a total deal value between the values given. Request passed on to their IT team and hopefully they will clarify.

gadgetmind

srcandas wrote: »

I guess when the markets are rising my strategy may well have to change but for now it is working - or possibly I've just been lucky.

If you put winning down to skill rather than luck, it puts you in a difficult position when you lose.

But I will look to reduce my trading costs to less than 1.25% buy/sell/stamp/spread soon

Those who indulge in such short-term trading tend to use spread bets, CFDs and the like, but I know little of such things.

TCA

This novice is getting a bit lost here guys with talk of fees for certificated trades etc... I presume we're still talking ITs seeing as they appear to be akin to buying shares, so you have dealing charges as opposed to commission. If so, I presume also that you can probably buy direct via the IT itself as opposed to via a stock broker or online platform?

Can anyone recommend the best way to buy say half a dozen ITs outside of an ISA wrapper. Or is that what we're trying to arrive at in the latter posts? Not sure whether we're only talking certificated trading or not.