iii or FD Waterhouse?

EagerLearner

Hi there - I am working for a client who would like to invest in a maxi-isa.

He wants to invest via iii or TD Waterhouse.

Has anyone got any feedback as to which one is the better one for service / fees etc?

Once we know which one offers the best as a whole, we will start to look more into which fund would be the best.

Many thanks :beer:

dunstonh

neither is best. Why does the client want to use either when there are better available?

EagerLearner

He has read in Moneywise magazine about those two - which others do you recommend? He is open to suggestions - wants to invest in one that allows him to see all his investments in one place and also that doesn't charge too much.

I think from conversations we have had, that once he has registered with a site, he is also happy to invest in a fund that is quite evenly spread and is prepared to take some risk.

Any suggestions you have would be great as he is very open to learning more right now. Thanks.

dunstonh

one assumes he is looking at a platform/fund supermarket.

Hargreaves Lansdown is the main one for investment funds being done on DIY basis. If through an intermediary, then fidelity fundsnetwork, cofunds, selestia and skandia are some others.

You shouldnt just invest in one fund either. Eggs all in one basket approach rarely works and over the long term will result in lower returns.

EdInvestor

It sounds like he wants shares if he's looking at those two.

Many people like https://www.selftrade.co.uk

It's ISA deal is very cheap, as is its deal on ETFs (I-shares trackers) in the ISA.

EagerLearner

Hi thanks for those tips - he wants to invest in UK / Germany / US / China - varied markets so that the risk is evenly spread. I think he prefers to pay a set amount per month for the funds to be invested for him as he has little time to choose the shares himself.

He is looking to invest £7k for himself per year and £7k for his wife.

Hope this helps - I am learning as I go and would like to eventually be able to say I know a little about maxi-isas (at the moment only know aboutcash isa's and nothing about funds)

EdInvestor

EagerLearner wrote: »

Hi thanks for those tips - he wants to invest in UK / Germany / US / China - varied markets so that the risk is evenly spread. I think he prefers to pay a set amount per month for the funds to be invested for him as he has little time to choose the shares himself.

You should definitely look at the I-share ETFs then - they have a selection of foreign trackers.Very low cost for this type of investment. He would have to go online once a month to buy the latest tranche in his ISA though.

If he wants automatic investment he'll be better off with Hargreaves Lansdown but I suspect they are more expensive for ETFs.

austinrodeo

I'd advise against iii. They were fine (although not the cheapest) until they changed their platform to Halifax's share dealing site since then buying and selling funds on line has been "broken".

Only dealt with their call center to buy a fund for my ISA once and things didn't go well. I'm looking to transfer to Hargreaves Langsdown - then I can save on lower fees in future as well!

The online system used to work really well and was easy to follow, great for someone that was new to Funds ISAs.

I believe (but could be wrong) that iii and Moneywise are sister companies, worth considering if using Moneywise as the basis of selecting iii.

EagerLearner

Hi, sorry still trying to understand it all - could you give me a link that I can read up on, I will get a grip with Hargreaves Langsdown then. Just wanted to know the 'reasons why' HL are worth going for so I can explain it to him? I also want to learn myself.

Thank you - being new to all this I know it may seem like daft questions, but I want to work hard for him and show that I look into all the options in his best interest, especially if I can explain that iii are not the best option because x y z - thank you :T

austinrodeo

Martin's article on Funds ISAs would be the best place for you to start:

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1080463348,20132,

If you visit Hargreaves Lansdown's web site and iii site you'll be able to compare the Initial & Annual charges for the funds you're interested in and see how much you could save.

cheerfulcat

EagerLearner, Hargreaves Lansdown have a few things going for them. They offer the biggest discounts on funds, they have one of the biggest selection of funds and their online service is easy to use.

On the down side, customer service can be patchy and sometimes downright dreadful and when they louse things up they louse them up big time ( and refuse to accept the blame... ).

Having said that, no-one is perfect and of the brokers I have used I have found HL the best for funds. If you were wanting to trade shares as well then I would suggest opening a Selftrade account in a different tax year for that purpose as HL's trading commission is very steep.

You mention a client; are you advising someone in a professional capacity? If you are, I would have thought that there are regulatory considerations here - you don't appear to have the appropriate qualifications? Just something to think about, perhaps it doesn't apply in this case...