iii introducing quarterly £20 charge

grey_gym_sock

wastedtalent wrote: »

How does transferring a stock ISA work? Looks expensive to transfer each stock so can I sell all my holdings then transfer the ISA then rebuy?

you can transfer either as stock or as cash.

ii will charge £15 per stock to transfer out as stock, nothing to transfer as cash.

but ii will charge £10 per stock to sell, and then TD direct will charge £12.50 per stock to buy, and the government will charge 0.5% stamp duty when buying, and there will be a spread between buying and selling prices, and you'll be out of the market for a minimum of 2 weeks.

surely you're better off transferring as stock.

but note that, if you want to leave TD direct later on, they charge more to leave: £35 per stock transfer, plus £50 to close an ISA.

laughingboy

I might appear as a bit of a dunce now but I hold 8 Funds in an ISA, to which I contribute £200 monthly - how will this affect me?

I'm assuming I will be charged £80 a year but receive rebates from each of my funds (I reckon ~£40 for first year [I took this to be 0.6% of my current ISA value])

dh_mcr

Just got the email this morning.

This thread on The Fool has a few ideas for alternatives, but I couldn't see any reference to these latest charges from iii on the forums yet.

G_M

I see most people on this thread are concerned with ISAs etc.

I have only half a dozen shares - not in any wrapper.

Anyone got a list of companies offering cheap share-dealing (+ their charges) and no annual/quarterly fees?

koru

I can understand people being annoyed with this change. However, this could make iii a good option for some investors.

They will now rebate all income that they receive from any funds you hold. This seems to include platform commission. They reckon that the average fund pays them 0.64% income per year, so the rebate would exceed the £80 charge if you have more than £12,500 invested in funds (unless your funds pay lower commission than average). If you have, say, £100,000 invested in funds you could be getting £640 rebate per year.

The charge of £80 per year seems to cover all accounts, so for instance it would cover an ISA account and an unwrapped account. It also covers other members of the same family, so if a married couple both have a ISA and an unwrapped account, the charge equates to £20 per account per year.

This is really only going to penalise people who have very small (or no) funds holdings who make very few trades per quarter. People in that category are rightfully going to be annoyed at this change, but anyone who is not might find they are better off staying with or moving to iii.

grey_gym_sock

for unwrapped, i'll probably go to back certificated dealing, to avoid lock-in.

i think lloyds tsb do it for £27.50. haven't tried them yet.

dh_mcr

G_M wrote: »

I see most people on this thread are concerned with ISAs etc.

I have only half a dozen shares - not in any wrapper.

Anyone got a list of companies offering cheap share-dealing (+ their charges) and no annual/quarterly fees?

TD Direct are £12.95 per trade, and if your portfolio is worth over £7,500 there's no management fee.

SIPPDeal are £9.95 per trade with no management fee.

IWeb are £10 per trade with no management fee.

I have no experience with any of these, they're just what I've picked up from The Fool.

creativ

I am so annoyed about this. This is exactly what happened at Selftrade and the reason why I switched. The only difference is at Selftade I didn't get any notification. I complained and threatened to take the matter to the FOS. As a result Selftrade waived the charge and the charge for closing my account.

It penalises people who own shares long term and trade infrequently - iii must hate people like us, given the despicable way they are treating us. £80 a year for owning a share based account is a total rip off - my shares are only worth £200!

Looks like they are rooting out small time traders and making their club more exclusive in a bid to appeal to traders with loads of money at their disposal.

Puts me off iii and any other share dealing site for life and buying shares as well.

Does anyone know if there is a charge for closing account or transferring out shares?

milesoneill

I'm so annoyed by this too. I'm going to have to sell my (relatively small value) long term investments for about a 50% loss, otherwise I'll be forking out £80 per year which will quickly wipe out any potential profits.
Selling the shares is easy, but I've been all over the site and cannot see how to actually shut down the trading account. I most certainly don't want to be charged for an account that's not in use!

DonnySaver

Thankfully dont have any active shares at the moment in my account. Have just transferred out what money I had left in there. Once that's landed in my bank account I'll be closing my iii account down.
They can get stuffed!