Recommend a fund platform?

plarka

I think I've finally decided on the HSBC FTSE All Share Index ISA as it has the lowest TER. I was going to use fund supermarket Fidelity but am not sure and can't remember why!

It looks like Cavendish Online is recommended by some on here too? They say there are no fees for investing, is that true? Are there some hidden fees? Inctivity fees or something?

I'm investing a small amount of £500 to start with. Thanks!

plarka

Please? Anyone?

jem16

I think the biggest problem with you not getting replies lies with the impending Platform Review which is likely to hit tracker costs the most. It may well turn out the the cheapest place to buy trackers is direct from the fund house itself.

This thread may help but do be aware that it could change any minute unless the platform is already using unbundled charging.

https://forums.moneysavingexpert.com/discussion/3153942

buffman

I use the Fidelity Funds network via Cavendish. The Initail charge is generally waived (research a fund on Cavendish's website to find the rebate for a particular fund) and the trail commssion is refunded to your bank account quarterly by Fidelity. When I invested, Cavendish were not charging a setup fee. There were no hidden fees (provided eveything was done online). For people who do not require advice, this is the way forward.

dunstonh

There were no hidden fees (provided eveything was done online).

Fidelity is a bundled platform. So, there are hidden fees. Fidelity get the hidden platform commission or hidden marketing payments from fund houses that the FSA is banning.

jem16

buffman wrote: »

I use the Fidelity Funds network via Cavendish.

Which is almost certain to have to change its charging model.

talexuser

I have active funds with Cofunds through Cavendish which I have been toying with the idea of transferring to Fidelity (requires a sell and re-buy) just to get rid of the 0.25% transfer fee.
Any hints from CoFunds that they will follow what makes them rather uncompetitive at the moment? Or are they waiting for new rules to become concrete?

jem16

talexuser wrote: »

I have active funds with Cofunds through Cavendish which I have been toying with the idea of transferring to Fidelity (requires a sell and re-buy) just to get rid of the 0.25% transfer fee.
Any hints from CoFunds that they will follow what makes them rather uncompetitive at the moment? Or are they waiting for new rules to become concrete?

Cofunds are supposed to be launching their unbundled offering in July.

http://www.moneymarketing.co.uk/wrap-and-technology/pricing-row-as-big-platforms-start-unbundling/1049614.article

plarka

Oh great, should I wait then to see what happens?

Totton

For me it has to be Hargreaves Lansdown, I've been with them for ages and never had a problem. Having said that, if I were buying just one product then I would look to get it direct. Going direct was the way I went when first buying Investment Trusts, it was cheap and easy to buy via their own in-house savings plans but once I went for holdings in more than one company then I decided to save on the paperwork and went with a fund supermarket, the first was American Express Sharepeople who where excellent but folded. After moves to Fidelity and others we ended up with HL and have had no need to move. Sure they upset a lot of people with their introduction of tracker charges but the reality is that folk clamoured for transparency and RDR so now we have to pay for it.

Another one not mentioned but often cited as good, is Alliance Trust & Savings, not used them myself but apparently they are okay. I quite liked Fidelity but found them not so good at fund discounts play there was a switching charge of around .25%, not sure if that is still the case though.

HTH,
Mickey

dunstonh

Sure they upset a lot of people with their introduction of tracker charges but the reality is that folk clamoured for transparency and RDR so now we have to pay for it.

The fear is when they have to go fully unbundled that the charges will almost certainly need to be greater than the small amounts introduced so far. My guess is that they are bringing in the charges in stages in small bites whereas some are making the change in one go. Maybe they are holding out for the FSA to change it's mind on hidden commissions or excluding non-advice channels.