iii introducing quarterly £20 charge

Alex2011

zildjian wrote: »

I dont know if it helps but Barclays offered to waive their £15 a quarter charge when i asked to leave a couple of days ago.

this will work for one or two times but not for whole year.

gingellr
Thank you for your answer.

victormeldrew2

brineybay wrote: »

I sent my transfer form to X-O yesterday, how long do you reckon it'll take before they contact Interactive? (I would hope before end of June).

In a secure message to me, Interactive said:
"I am sorry you are leaving Interactive Investor. I can confirm that in order to transfer out we will require to receive your Transfer Form in our Glasgow office by 31st July 2012 should you wish to receive no transfer costs. I can confirm that the first quarterly fee is due on 1st July 2012, therefore if you want to avoid this also then we will require the transfer form to be received by 30th June 2012."

So to avoid the first quarterly charge do I have to do anything else, other than send my transfer form to X-O?

Thanks,

Spoke to X-O Friday, completed online application and got account number, sent off transfer forms - IF X-O act as usual, Interactive will have those forms by Friday / Monday. Lets be clear, X-O is no frills but they consistently seem to get the basics right and I have never yet found info given in first conversation to be incorrect. They may have had to pass me to the right person, but the info has been spot on. That's why I've moved to them. TD, HL etc all had uncertainties about their answers.

miller

victormeldrew2 wrote: »

Spoke to X-O Friday, completed online application and got account number, sent off transfer forms - IF X-O act as usual, Interactive will have those forms by Friday / Monday.

I emailed X-O about me putting the London address for II on the form. They replied very quickly saying they had already sent the form to the Glasgow office.

Good stuff :T

Alex2011

does anyone know why the iii will charge £20 and the same company shareprice.co.uk will not charge anything???

MrDaLi

gingellr wrote: »

Although if I was buying into a fund on a monthly basis with ii, I would use regular investment so it would only cost £1.50 which the £20 would also count towards, but I still think a provider that does not charge for buying or selling funds is better.

I was confused about the regular investment bit myself - not clear enough on the website. I got through to the call centre and they confirmed that the £20 is a prepayment of trading credit and can be used for shares or funds either as real trades or through portfolio builder.

I have just been doing the occasional £10 trades so far, but will start using the portfolio builder for funds - I can then buy into a few funds each month for 3 x £1.50. The £13.50 a quarter comes out of my credit that still leaves me £6.50 of credit which can go towards the odd £10 sell for rebalancing.

Also - and I had not fully grasped the benefit of the fund management charge rebate. I should be getting back almost £10 each quarter in rebates. I guess that going for a provider who does not charge up front makes sense a certain level, but I have not done all the sums yet.

gingellr

MrDaLi wrote: »

I was confused about the regular investment bit myself - not clear enough on the website. I got through to the call centre and they confirmed that the £20 is a prepayment of trading credit and can be used for shares or funds either as real trades or through portfolio builder.

I have just been doing the occasional £10 trades so far, but will start using the portfolio builder for funds - I can then buy into a few funds each month for 3 x £1.50. The £13.50 a quarter comes out of my credit that still leaves me £6.50 of credit which can go towards the odd £10 sell for rebalancing.

Also - and I had not fully grasped the benefit of the fund management charge rebate. I should be getting back almost £10 each quarter in rebates. I guess that going for a provider who does not charge up front makes sense a certain level, but I have not done all the sums yet.

All well and good but you will still be out of pocket compared to other firms unless you make 2 or more £10 trades per quarter, and if you do want to sell a fund that will cost you £10 to do as well.

Also some providers who dont charge up front cost also rebate on funds.

dunstonh

Also some providers who dont charge up front cost also rebate on funds.

How do they make their money if they are rebating the commissions but not making an explicit charge?

There are some that only rebate a small amount of the commission (HL for example). However, that could be more expensive than explicit charge with full commissions rebate

gingellr

dunstonh wrote: »

How do they make their money if they are rebating the commissions but not making an explicit charge?

There are some that only rebate a small amount of the commission (HL for example). However, that could be more expensive than explicit charge with full commissions rebate

Well on some funds i guess they dont make any money.

TD Direct rebate all the commission but they do make a platform charge if more than 0.5% of trail is given to them, which aparantly most index funds do not give that much.

http://www.tddirectinvesting.co.uk/help/faqquestions/fund-charges-what-are-td-doing/

*edit*
also from their website...
What happens where Trail Commission is less than 0.5%
If the Trail Commission on your fund is less than 0.5% then you will receive a rebate but will not be charged a Platform Fee.

grey_gym_sock

TD Direct say they will now rebate all trail commission, so presumably they are still retaining the platform commission. that would explain why they don't offer Vanguard funds (which pay neither kind of commission).

if both trail and platform commissions are abolished, they'll have to make some further explicit charge (for funds, at least - whether they'll increase charges for ppl holding just shares, like ii have done, is less clear).

gingellr

grey_gym_sock wrote: »

TD Direct say they will now rebate all trail commission, so presumably they are still retaining the platform commission. that would explain why they don't offer Vanguard funds (which pay neither kind of commission).

if both trail and platform commissions are abolished, they'll have to make some further explicit charge (for funds, at least - whether they'll increase charges for ppl holding just shares, like ii have done, is less clear).

Well they dont charge platform fess on funds that pay less than 0.5% and take no fee and also rebate all the trial, and they have just changed their charges because of RDR so hopefully this wont change for a while.