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Trustnet launch new DIY investment platform

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  • SnowMan
    SnowMan Posts: 3,676 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 9 March 2014 at 4:53PM
    Imnoexpert wrote: »

    Job for the weekend is to do a lot of number crunching and comparisons. Wonder if Snowman will update his spreadsheet?

    Just to let you know I already had Trustnet Direct in the spreadsheet, as they had pretty much given out their charging structure.

    I've only had to change their exit charge for SIPPs which they've now said is £120 (rather than £15 per investment). The £15 per investment does apply to re-registrations from dealing accounts and ISAs

    Remember if you have a SIPP to factor in that in year 1, the Trustnet Direct SIPP administration fee of £144 is waived; the spreadsheet shows the long term annual cost in year 2,3,4 etc where there is no waiver.

    A link to the latest version (v12) of the spreadsheet can be found in the following post.

    http://forums.moneysavingexpert.com/showpost.php?p=64540489&postcount=15

    If you've got an old version it might be worth downloading the latest version as the charts make the results easier to visualise , and I've added a few more platforms in also.
    I came, I saw, I melted
  • TraderTom
    TraderTom Posts: 13 Forumite
    le_loup wrote: »
    The III £80 is minimum and maximum and you only pay once for family linked accounts. Trustnet is 0.25% up to a maximum of £200 and no linked accounts.
    So in my case, I will spend just one lot of £80 per year for my and my wife's account. If I were going to Trustnet I would pay £200 for hers and £200 for mine because both accounts are over 80K. In addition I would pay £10 for all transactions; with III I get potentially 8 free trades.

    Thanks for explaining. I guess one point worth noting is that with III if you have a SIPP and an ISA, you pay £144 + £80, whereas with Trustnet I believe this is still capped at £200 - although you have trading costs ontop. Regardless, that family account from III offers a good saving.
  • SnowMan
    SnowMan Posts: 3,676 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 11 March 2014 at 12:21PM
    TraderTom wrote: »
    Thanks for explaining. I guess one point worth noting is that with III if you have a SIPP and an ISA, you pay £144 + £80, whereas with Trustnet I believe this is still capped at £200 - although you have trading costs ontop. Regardless, that family account from III offers a good saving.

    With Interactive Investor if you have a SIPP and an ISA you pay just £144pa (n.b. not £144 + £80 as you suggest). You don't get any free trades though. It is not entirely clear on their website but a number of people including myself have had that confirmed by Interactive investor.

    Note with Trustnet Direct you pay their £144pa SIPP administration fee on top of their £200pa charge (for those with over 80K invested). However the SIPP £144 charge is waived for the first year. So £200 in year 1 and £344 in year 2,3 etc. Plus dealing costs.
    I came, I saw, I melted
  • talexuser
    talexuser Posts: 3,527 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Here's hoping the Trustnet cap will catch on via competition. £200 for a large portfolio of funds is not t-o-o bad, and it is difficult to see how you can justify %s for any extra work involved with funds worth 400 or 500k?
  • SnowMan
    SnowMan Posts: 3,676 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 11 March 2014 at 12:53PM
    talexuser wrote: »
    Here's hoping the Trustnet cap will catch on via competition. £200 for a large portfolio of funds is not t-o-o bad, and it is difficult to see how you can justify %s for any extra work involved with funds worth 400 or 500k?

    With 250K in funds in each of a dealing account, ISA and SIPP with Hargreaves Lansdown you pay in total £3,375pa (gulp)

    With Trustnet you pay £344pa (long term) plus dealing costs.

    So that illustrates your point well.

    But I think the difficulty Trustnet Direct have is that they are beaten on cost by Interactive Investor for those with large amounts in funds in each of an ISA, dealing account and SIPP.
    I came, I saw, I melted
  • redbuzzard
    redbuzzard Posts: 718 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Excellent spreadsheet, Snowman, thank you. I've been messing about with this and not really got anywhere as the charging basis differs so much between providers, I like the way you've done it. I doubt if many of the platforms have a better comparator themselves.

    Worth noting that individual fund costs are not the same on all platforms, even when the funds are available. Before jumping, it would be wise to check. Not worth trying to cater for this of course - it would be out of date almost as soon as it was created, and a horrible maintenance job.
    "Things are never so bad they can't be made worse" - Humphrey Bogart
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    Received an email about the trustnet direct service and the site does look good.

    Iii and iWeb certainly look the cheapest fro most people with larger sums but being cynical and suspicious by nature does anyone think they'll continue with the current fee charging levels?

    Buy and hold with them is extremely cheap, and they of course have additional revenue from buying and selling, but my suspicion is that they might increase fees and, indeed, iii have a track record for this which very much annoyed clients not too long ago.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Trustnet came out as one of the most expensive for me when I plugged my data into snowman's spreadsheet.
  • le_loup
    le_loup Posts: 4,047 Forumite
    edited 15 March 2014 at 9:55AM
    bigadaj wrote: »
    but my suspicion is that they might increase fees and, indeed, iii have a track record for this which very much annoyed clients not too long ago.
    Yes but.
    What we can do then is to transfer out and use the same tactics we have with H-L to get the transfer charges dropped because of their unilateral change to the T&Cs.


    ... but I s'pose we might all get mighty bored with that. ;)
  • koru
    koru Posts: 1,537 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    bigadaj wrote: »
    Received an email about the trustnet direct service and the site does look good.

    Iii and iWeb certainly look the cheapest fro most people with larger sums but being cynical and suspicious by nature does anyone think they'll continue with the current fee charging levels?

    Buy and hold with them is extremely cheap, and they of course have additional revenue from buying and selling, but my suspicion is that they might increase fees and, indeed, iii have a track record for this which very much annoyed clients not too long ago.
    III did make a fee increase, but so has every other platform. I'm not sure it is fair to call this a track record, as if they were unusual.

    ATS has made two lots of massive fee hikes since III did its fee change. That's a track record.

    III have said they have no plans to increase fees. Obviously they will, one day, but I think they would be very foolish if they made big changes any time soon, because people would jump ship and they would struggle to avoid waiving exit fees.

    But I agree it would be nice to understand how their current model is sustainable.
    koru
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