iii introducing quarterly £20 charge

jimkenyon

One of the problems with Interactive Investor is the late crediting of dividends. If they are going to charge a premium fee does that mean a premium service where dividends are paid on the due date?

rail.link

Perelandra wrote: »

Which sort of account do you have- ISA, SIPP or an unwrapped trading account?

Unwrapped trading account. Used it for drip feeding monthly unit trust investments.

Thanks.

Hydromancer

I initially chose iii due to their lack of annual charges. However, I have two accounts with iii (trading and ISA) and my parents also have accounts with them. We all use their regular investment facility. In the long run, these charges will probably not make much of a difference as we will pay the same fee and then redeem the regular investing charge

I have to say that I saw this coming when the RDR was introduced. It is inevitable that all platforms will introduce charges by the end of the year and I will wait till the dust settles to find the cheapest choice. RDR will make it impossible for "buy and hold" investors who have only small holdings.

jimkenyon

Hydromancer wrote: »

I initially chose iii due to their lack of annual charges. However, I have two accounts with iii (trading and ISA) and my parents also have accounts with them. We all use their regular investment facility. In the long run, these charges will probably not make much of a difference as we will pay the same fee and then redeem the regular investing charge

I have to say that I saw this coming when the RDR was introduced. It is inevitable that all platforms will introduce charges by the end of the year and I will wait till the dust settles to find the cheapest choice. RDR will make it impossible for "buy and hold" investors who have only small holdings.

You could link yours and your parents accounts (from 12th June?) and pay one fee between all accounts.

Perelandra

rail.link wrote: »

Unwrapped trading account. Used it for drip feeding monthly unit trust investments.

Thanks.

For this, I would choose either Cavendish or Alliance Trust:

Cavendish: No dealing fee, no costs at present for ISAs, but may not have the funds you want.

Alliance Trust: Regular dealing fee of £1.50/trade, no annual charge (for unwrapped), wide selection of funds & other investments. If it were an ISA or SIPP, then there is an annual charge.

pqrdef

Perelandra wrote: »

(post RDR):
iii apologise that they're no longer allowed to rebate commissions, as these have been outlawed... but still charge the fee.

It remains to be seen whether AMCs will really be reduced by the equivalent amount, when trail commissions are abolished.

The fund houses will probably argue that trail commissions help to keep their products visible, at least, and they will now have to pay for new ways of letting people know they exist.

RalphS

HSBC - We do not charge you to close your account or if your account becomes inactive i.e., no trading.

£12.95 per trade, but the website lacks functionality.

For those fortunate enough to have a 50K+ portfolio, you get the benefits of their Premier bank account, including free travel insurance linked to the bank a/c, not dependent on using their credit card to purchase ones travel. Many other benefits too. Free debit card ATM currency withdrawals abroad & a relationship manager if you can remember what that is.

Dividends get credited into the linked HSBC current a/c on the day. In fact all transactions are linked to the HSBC current A/c

koru

Perelandra wrote: »

I'm somewhat sceptical of the 0.64% figure that iii have quoted, as that's just an illustrative figure, and I've not been able to find any specific figure for a specific fund to check it by. It's also not clear whether that's just the trail commission, or includes any platform as well.

They have said very clearly that they will rebate all income that they receive from the funds, so I think this must include platform commission. The figure of 0.64% average rebate seems about right to me. That's probably what I get from Alliance Trust Savings, which also rebates platform commission as well as trail. I get rebates as high as 0.85% from ATS. You can see the ATS rebates here: https://www.alliancetrustsavings.co.uk/pdf/list-of-funds.pdf?

I can't guarantee you that the iii rebates will be exactly the same, but my guess would be that the ATS rebates are a pretty good guide.

dunstonh

there is a duplicate thread running in the ISA section. it contains info not in this thread:
http://forums.moneysavingexpert.com/showthread.php?t=3991973

It remains to be seen whether AMCs will really be reduced by the equivalent amount, when trail commissions are abolished.

The fund houses will probably argue that trail commissions help to keep their products visible, at least, and they will now have to pay for new ways of letting people know they exist.

The clean share classes already issued by the many of the fund houses are coming in with AMCs around 0.75% typically. That reflects 0.5% IFA and 0.25% platform being knocked off. However, some fund houses were getting much less of the cut under the old method. Especially with certain platforms. So, at this stage, only knocking off 0.25% for the platform cut seems to suggest that the fund houses are using it to redress their remuneration.

Remember that most platforms are going to have to do something similar as the charges move away from hidden commissions/rebates to explicit charging.

creativ

ruperts wrote: »

It would be great if someone in the know could put together a step by step guide of the best way to handle this. I'm sure a lot of people would be very grateful if you did.

Agree, that would be helpful.

I would like Martin Lewis to step in and back us up. He could draw attention to this on the website and forum.

Interactive Investor is according to the company "the UK's leading community of traders and investors online" with 8 million unique users visiting our [their] site every year" so this change will affect a lot of people.