Best execution only share dealing service, no inactivity/quarterly fees? (iweb / XO?)

TCA

Thanks for the reply grizzly, and thanks to Ifts for the link.

Ifts wrote: »

Thats a first that I've heard X-O may be using the Halifax dealing platform so cannot comment on that. But X-O do let you deal in ETFs: http://www.x-o.co.uk/how_to_use.htm#11 (12. What markets can I deal in?)

The Halifax connection was mentioned here below but I haven't seen it mentioned elsewhere. It's from the point of view of knowing what they're selling seeing as I can't see a list:

http://forums.moneysavingexpert.com/showpost.php?p=57398303&postcount=9

With regard to ETFs, is there any way to check which ones they offer? I'm looking specifically for iShares and Vanguard. Or can someone just tell me please?

Stanley_St

TCA wrote: »

Anybody got an account with X-O and care to comment on their overall offering? I'm looking at using either them or TD Direct as a "no-fees" platform for holding investment trusts.

I have been happy with X-O as a place for shares and corporate bonds, ever since II waived exit charges a couple of years back (following announcement of II's new RDR compliant pricing structure). Not flashy, but functional online and I have no complaints. X-O staff invariably helpful when phoned up. A few IPOs available through them, but none for corporate bonds that I have seen.

Ifts

TCA wrote: »

With regard to ETFs, is there any way to check which ones they offer? I'm looking specifically for iShares and Vanguard. Or can someone just tell me please?

Sorry I only use X-O for share purchases so cannot say what ETFs they do, only that they do offer them.

Another poster on here posted they buy ETFs through X-O, iirc it was Glen Clark - hopefully they will pass by and comment on which ETFs X-O offer.

Or maybe give X-O a call, they are very helpful on the phone.

EnglishMohican

X-O will sell you anything that is listed on the London Stock Exchange. So they certainly sell ETFs. That certainly includes ETFS like VUKE which is a Vanguard UK ETF. As far as I know, you cannot buy Vanguard American ETFs but there are ETFs from IShares and DbX_Trackers among others.

TCA

Thanks EnglishMohican. If VUKE is available then I imagine the whole range of Vanguard's Irish domiciled ETFs will be. Cheers.

DaveTheMus

I use Iweb and I can't fault them.....

Porcupine

I picked iWeb as:

1. they do funds. This is a useful point of flexibility
2. they do foreign (eg US) shares (at a nasty 1.5% exchange rate, but at least it's feasible). X-O only do foreign shares if they have an agreement with the LSE, which is only a very few foreign shares

After doing this the new post-RDR pricing was published, which suggests iWeb won't have any holding fees for funds, which makes them a low-cost choice for funds too if you don't deal much.

I haven't actually had a trade go through yet, but it all seems OK.

One curious thing: in the charges section when you're logged in, there's these notes (the quarterly charge referred is for the SIPP):

All charges except the quarterly administration charge will be deducted by A J Bell Management Limited before funds are transferred to your IWeb Share Dealing Cash Management Account.

These charges may be shared between A J Bell Management Limited and Halifax Share Dealing Limited

A J Bell is now YouInvest. So why are Halifax and A J Bell sharing charges, when they're two competing firms?

bowlhead99

Porcupine wrote: »

A J Bell is now YouInvest. So why are Halifax and A J Bell sharing charges, when they're two competing firms?

It's true that AJ Bell do have their own standalone SIPP service, which is branded Youinvest and was previously branded Sippdeal.

If you set up a self invested personal pension you need someone to act as trustee and administrator, registered with HMRC, and do a bunch of stuff that a typical broker/ trading platform is not set up to do. So, AJ Bell provide a 'white label' SIPP service in the background for people like iWeb and TD Direct to offer, which iWeb or TD will sell you co-branded with their own investment service.

So if you set up a SIPP with iWeb or TD, then the dealing bit for picking investments is provided and priced by Halifax or TD respectively, but any of the pensions administration aspect of it is run by AJ Bell, and if you have cause to send them forms or write to them in relation to your pension, you'll be writing to AJBell in Manchester rather than iWeb in Halifax or TD in Leeds.

The pension trustee stuff that AJ Bell provide when you ask iWeb for a SIPP includes bringing you into their Sippdeal e-SIPP scheme registered with HMRC and:

• maintenance of administrative records and appropriate systems to establish and administer your SIPP,
• maintenance of administrative records and systems to receive Contributions, Transfers and pay benefits as appropriate;
• recovery of basic rate tax on Contributions paid by you or on your behalf (where appropriate);
• recovery of any allowable tax deducted at source on investment income received by your SIPP;
• production and issue of certificates to verify Contributions paid, where requested;
• dealing with day-to-day general correspondence and telephone enquiries; and
• any additional services that may be required from time to time to administer the Scheme and comply with HMRC or any other regulatory requirement

TCA

Porcupine wrote: »

I picked iWeb as:

1. they do funds. This is a useful point of flexibility
2. they do foreign (eg US) shares (at a nasty 1.5% exchange rate, but at least it's feasible). X-O only do foreign shares if they have an agreement with the LSE, which is only a very few foreign shares

After doing this the new post-RDR pricing was published, which suggests iWeb won't have any holding fees for funds, which makes them a low-cost choice for funds too if you don't deal much.

Thanks Porcupine. Good to know. I used this thread rather than start a new one, but for my own purposes (unlike the thread subject) it's not a direct choice between X-O and I-Web. It's more:

1) Trading account for LTBH investment trusts - probably X-O or TD Direct. No fees for either (for shares) but TD Direct has the flexibility for funds if need be (0.35% charge) and has dividend reinvestment. Bigger exit charges though.

2) ISA - probably both funds and shares, so I-Web (or Halifax) looks good. Limited Vanguard selection but I can live with that.

My thinking is to keep trading and ISA accounts with different brokers/platforms but I might be just as well saying "sod it", and just use IWeb for the lot!

Onedrew

I find iWeb a very good value site for trading, with no platform fee. But don't be fooled by the valuations page which purports to show the value of your holdings. The cost-per-share valuations are based only on purchase price and do not change if you sell some, whether you sell at £1 or £1,000 a share. Relying on this valuation could prove costly. I have complained to iWeb without success, so make sure you keep an accurate record of trades to ensure you do not sell below your true average price.
Otherwise, excellent. I have had no issues with price-limit trades or range trading, although there is a £2 set-up fee for these if placed outside an ISA. The £2 is refunded on execution, but not if you change your mind.