iii introducing quarterly £20 charge

guitarman001

Think I found my solution. Hargreaves Lansdown fund & share dealing account. Don't need an ISA so ok on that front. No admin charge. I'm going to transfer the one share I have and just buy the VanguardLifeStrategy fund as my entire investment stratgey. TER=0.33% plus £2 per month for each purchase but after from that, THAT'S IT!

The only downer is that for £100 buys each month, £2 is 2%!!! Maybe I should think of it as one less pint down the pub (not that I drink).

pqrdef

guitarman001 wrote: »

The only downer is that for £100 buys each month, £2 is 2%!!! Maybe I should think of it as one less pint down the pub (not that I drink).

If you pay in £100 a month, your average "balance" in the first year is around £650, so the £2/month platform fee costs 3.7% as an interest-equivalent. This reduces to 1.3% in the second year and 0.8% in the third.

DonnySaver

How are iii going to collect the £20/quarter anyway? If I have £0 in my iii share dealing account do they have the authority to simply go and extract £20 from my bank account?

jimkenyon

DonnySaver wrote: »

How are iii going to collect the £20/quarter anyway? If I have £0 in my iii share dealing account do they have the authority to simply go and extract £20 from my bank account?

Persuming that you have stocks or funds then if you don't make a payment they can sell off some of your holdings.

JoeCrystal

DonnySaver wrote: »

How are iii going to collect the £20/quarter anyway? If I have £0 in my iii share dealing account do they have the authority to simply go and extract £20 from my bank account?

Well, since you ask, I thought I might check Interactive Investor Terms and Conditions.

11.2 We will collect dealing charges by adding them to the cost of buying Investments, or by taking them from the sale proceeds. We may collect these charges, our administration charges or any other applicable charges from your CA, your Nominated Bank Account or any other account you hold with us. Any applicable charges will be included within the amount you are investing or deducted from the sale proceeds.

They can charge your Nominated Bank Account? Though jimkenyon rightly pointed out that they can sell some of your shares/funds to pay for it.

Cheers

Joe

Perelandra

guitarman001 wrote: »

Guys check this list out!

http://the-international-investor.com/comparison-tables/cheapest-uk-stock-brokers

Now just need one for fund supermarkets, and we're all set.

DonnySaver

JoeCrystal wrote: »

Well, since you ask, I thought I might check Interactive Investor Terms and Conditions.



They can charge your Nominated Bank Account? Though jimkenyon rightly pointed out that they can sell some of your shares/funds to pay for it.

Cheers

Joe

Well, I've sold everything I had and I've now got zero funds in my iii account as I transferred the lot out when they announced these changes. All ready for closing it down now. So, I have zero assets as such. Can they still legally take money from my current account?

lvader

They could still chase you for the money and possibly affect your credit history. You need to close the acount, not just remove the funds.

DonnySaver

lvader wrote: »

They could still chase you for the money and possibly affect your credit history. You need to close the acount, not just remove the funds.

Yep, that's just what I'm going to do. Looks like X-O.co.uk is the place for me. Bye Bye iii !

seangdawson

I have just called iii regarding my options - I only have a small holding, dont trade regularly and they are not wrapped.

Options
Sell - £10 per trade
Paper certificated - £20 per share
Transfer out - this is the interesting one. They have been told today not to say if they are charging or not and will be contacting people who express interest on this option.

From my initial search simplystockbroking.co.uk looks like a good option for me with no transfer in fees and an £8 flat sell or buy fee. They have no management charges and dont plan to bring any in (so they say)

x-o.co.uk also looks interesting at £5.95