Which share dealing platform? What risks?

tdowson

4 questions I would appreciate feedback on:

1. I have a FTSE tracker ISA and old PEP and a Unit Trust with a provider that charges 1%. With Hargreaves Lansdown I can get a much cheaper FTSE tracker. I also want to widen my investment portfolio further than just FTSE trackers, and have trackers and funds for global equities, emerging markets, and probably some small and value equities funds across all these, and some bonds. Are Hargreaves Lansdown going to be a good choice for the diversity I will want? Is there anyone better?

2. Where would private investors stand if any share dealing platform like HL went under, or the banks where they hold client accounts go bust, and you have cash balances on your account which are not invested in any funds or equities? If my bank with my personal bank account goes bust I am covered to £85,000. What happens if a share dealing platform uses the same bank, and it goes bust, and I have money in their client account?

3. Also with the economic shocks, risks of sovereign default, and banking failures still in mind, if you have most your investments in stocks and funds, apart from the paper value of these stocks and funds falling, does a private investor face any risks as a result of investing in a range of funds through a single dealing platform rather than using several share dealing platforms?

4. With regard to the stability and solvency of the companies managing the funds, should private investors spread their equities, mutual funds, and bonds across several funds (e.g. have 2 instead of 1 FTSE tracker, 2 instead of 1 emerging markets fund, etc.). Or is there no additional risk to investing in any fund (apart from the risk associated with its actual performance)?

Thank you.