RDR & Platforms - Basics for novices

darkvader

It was just over 18 months back I decided to get in the game, do a lot of reading and dive head in to start my S&S ISA. While I have learnt a lot during this time, the recent platform changes to charges and a myriad of percentage pricing is doing my head in.

I first started with Fidelity and then switched to HL solely because of their online features and wealth of information to plot my investments. Now that they too have announced changes, like many others trying, I need to look again and decide if I should move or stay put.

Is there anything out there to help me out? I invest about £350 monthly across 5 funds (Emerging, UK and US) and have a pot worth around £12k now. Should I just wait until every platform has made their changes and hope some comparison tool will come to my aid or should I start looking and planning now?

Thanks
DV

ChesterDog

This might be of some use -

http://www.thisismoney.co.uk/money/diyinvesting/article-1718291/Pick-best-cheapest-investment-Isa-platform.html

JohnRo

http://monevator.com/compare-uk-cheapest-online-brokers/

https://forums.moneysavingexpert.com/discussion/3153942

darkvader

Monevator and this forum's links are not up to date...I will try thisismoney as its the most recent.....but my original question holds : Is it worth just staying put for now until EVERYONE announces their charges or can I start the move now? Some do say they promise not to change their rates but can I actually rely on their words....for all you know, they may hike it up later after luring us all in!

Thank you
DV

takesyourchances

I am in a similar position not investing that long and have similar amounts and with HL. Personally for the moment I am leaving it until the dust settles and things become more clear and at at the min, will wait to the new tax year and decide what to do.

Personally I don't want to take a knee jerk reaction and what is a few more months or even a bit longer to make a decision when I am looking very long term with investments. I really don't know what to do either and will be holding back at the moment on it.

All very confusing, I will carry on my drip feeds and see what the next few months brings.

Rollinghome

I'd be inclined to leave it for a little bit longer but be aware if you intend to move from HL that they will be introducing new charges to make it more expensive to leave them that you may want to avoid.

From end of May they'll have a new charge of £30 just to close each account with them, that's separate charges for both ISA and non-ISA accounts if you have them, plus a new charge of £25 for transferring cash and/or the existing £30 for each fund or stock transferred. Could be pricey.

Whether you should move and where to is something else. It's possible there could be changes and new entrants to the market for a year or more so would be wise to watch exit fees. For funds, Cavendishonline/Fidelity are probably the most flexible currently with no fees at all, including no transfer fees, apart from a 0.25% platform fee as opposed to HL's 0.45%.

darkvader

Thank you for the advice,

Spent the day looking around and given I plan to move my investments into ITs from next FY, III seems the best option....£20 per quarter which can be used towards the £1.50 for regular investment looks like win-win for both sides. 4 ITs on regular investment pretty much makes it free for me.

Either that or will go direct with IT houses like Aberdeen, Baillie G or F&C, ISAs with them are far far cheaper now plus meets my needs....my problem with previous existing funds still remain although looking to leave with HL for the time being

DV

Totton

If you decide to move then be sure to take advantage of any cash incentives from the competition, for example ATS http://www.alliancetrustsavings.co.uk/cashback/

darkvader

Am I missing something if I only invest in Funds? Just trying to work numbers out this evening along with reduced prices and scratching my head

Lets say I have £10000 in a fund with TER of 1.5% - £150 yearly
With HL this fund charges a TER of just 0.64% - £64 yearly
Add to that HL's charges of 0.45% yearly - £45 yearly

Net effect in this case is I actually pay 'LESS' with only difference being that I literally pay HL which feels like I am paying HL. Earlier, the 1.5% would be deducted regularly from the actual fund price but it was still 1.5% off my fund value without me doing the physical monthly paying

Am I missing something? Of course, wont hold true for funds that dont have the special super low charge or funds that already charge below 1% but thats mostly trackers - most funds charge north of 1.5% so it sure seems like a net gain for fund only investors???

Thanks
DV

masonic

darkvader wrote: »

Am I missing something? Of course, wont hold true for funds that dont have the special super low charge or funds that already charge below 1% but thats mostly trackers - most funds charge north of 1.5% so it sure seems like a net gain for fund only investors???

You are not missing anything. Most HL customers will be paying less because of the change. However, it is now much clearer that they could pay considerably less again by moving elsewhere.