Genuine alternative to HL?

jamesd

It would, but there'd be a limit on costs where it just wouldn't make sense. I'm already forced to have two - one personal and one work - and could probably handle another without difficulty if that made sense. Though for my particular pot sizes I'm expecting that HL will just decide to price themselves out of contention. Maybe I'll be pleasantly surprised, though.

planteria

ok, if that is indeed how it pans out, where would you guess, at this stage, you will move to?

jamesd

At this stage I'll be looking at Trustnet Direct with great interest when I can, because of its 0.25% platform fee cap at £200 that stops rising once £80,000 combined is invested in the SIPP, ISA and investment accounts. I have around three times that so my effective platform fee would be 0.09% or less, plus dealing costs. Compared to 0.49% today at HL including dealing costs for funds, or £700 or so a year for only part of the money. Helping HL to some extent may be superclean fund pricing, if fund prices match their current after commission prices there, which is equivalent to 0.71% clean AMC as the weighted average for the active managed funds I hold at HL. That's AMC less all commission, weighted by the fund holding sizes. Even at £10 per trade it'd take more trades than I need for the current HL pricing to match it.

My first move would be to transfer more than £50,000 from a work pension to wherever looks most interesting.

planteria

good stuff james. it will be interesting to see how this is going to play out.

SnowMan

The Telegraph are saying they will identify alternatives for Hargreaves Lansdown customers to switch to on wednesday

http://www.telegraph.co.uk/finance/personalfinance/investing/funds/10567895/Cost-of-investing-to-tumble-this-week.html

Hargreaves Lansdown, the biggest of these companies, is due to announce how it will implement the changes later this week. When it does, the Telegraph will identity the cheapest fund shop for different types of investor. Visit telegraph.co.uk/investing on Wednesday for full details and different investor profiles.

jimjames

SnowMan wrote: »

The Telegraph are saying they will identify alternatives for Hargreaves Lansdown customers to switch to on wednesday

http://www.telegraph.co.uk/finance/personalfinance/investing/funds/10567895/Cost-of-investing-to-tumble-this-week.html

Thanks for that, interesting reading. There was this quote which could be read a number of ways:

Ian Gorham, the company's chief executive, has said the changes "will further improve the prices on the majority of the investments which are held by our clients".

It doesn't say majority of clients purely the majority of investments held by clients. So if 5 funds made up over 50% of their total then they would only need to get better pricing on them to meet this statement.

ALso it doesn't say the overall cost will be improved - just the price for those investments.

As always the devil will be in the detail.

The Telegraph also have this article suggesting an alternative to HL

http://www.telegraph.co.uk/finance/personalfinance/investing/10523154/New-rival-to-Hargreaves-Lansdown-launches.html

Rollinghome

Justin Modray now has a new Guide to Fund Platform Price Changes inevitably with a lot of TBAs but will presumably be updated as announcements are made. http://www.candidmoney.com/articles/279/guide-to-fund-platform-price-changes

planteria

good to see things starting to unfold.

[Deleted User]

Hi,

the new charging tariff booklet has just plopped through my letter box.

Havn't read through it yet, 50 pages, but the gist of the letter is that most investors will benefit.

You can read the highlights on HL website.

jimjames

[Deleted User] wrote:

Hi,

the new charging tariff booklet has just plopped through my letter box.

Havn't read through it yet, 50 pages, but the gist of the letter is that most investors will benefit.

You can read the highlights on HL website.

Sadly the letter is very misleading and obviously biased as HL PR speak but there are lots of losers! Check out the other HL thread for more info but the highlights to me were for anyone with shares and investment trust and anyone with large portfolio of mainly trackers.

The biggest loser quoted so far is going from £24pa to £1750. Not sure even HL's marketing can call that a benefit!