What are the risks of buying my ISA through a 'supermarket'?

alg298

I've read all the guides and think a 'supermarket'/discount broker sounds like a good idea to buy my allowance for this year. I was just wondering if there are any risks to be aware of, the supermarkets don't exactly highlight their risks.

How is my investment actually held?

Is the money protected? I'm not talking regular market fluctuations.

What would happen if the 'supermarket' I brought my fund through went under?

Is there any more safety in an investment house, Fidelity, etc?

Many thanks

dunstonh

I was just wondering if there are any risks to be aware of, the supermarkets don't exactly highlight their risks.

Yes they do.

How is my investment actually held?

There are multiple ways of doing it and you should ask your chosen platform.

Is the money protected? I'm not talking regular market fluctuations.

Investment FSCS protection applies on investments. Deposit FSCS protection applies on cash deposits held on platform.

What would happen if the 'supermarket' I brought my fund through went under?

You would be unable to trade for a period until such time that a new ISA manager was appointed. However, an administrator is likely to want to keep the platform running as a going concern and sell it to another platform.

Is there any more safety in an investment house, Fidelity, etc?

no

alg298

Speedy, succinct and very helpful.

Many thanks