Hargreaves Lansdown charges.

masonic

takesyourchances wrote: »

I was wondering myself is it worth the fuss at the moment on my amounts, with not overly long investing and with HL my S&S ISA amount is towards 12K with a Vanguard LS and 6 other satellite funds and I have a retentively new SIPP with a Vanguard LS 80% only starting to build slowly from drip feeds and low amount at the moment not worth talking about.

If the difference in fees you will pay is not significant then there might be some advantage to staying until at least March. HL have promised clients will be able to convert their existing holdings to clean class funds. This might not be so easily achieved elsewhere.

takesyourchances

masonic wrote: »

If the difference in fees you will pay is not significant then there might be some advantage to staying until at least March. HL have promised clients will be able to convert their existing holdings to clean class funds. This might not be so easily achieved elsewhere.

Yes at the moment on my amounts so far the difference is not huge or significant, I think staying put to see what comes is worth doing and as you said see what March brings with clean class funds with HL. I have 6 funds with my Vanguard LS core so worth holding on I think at the moment.

Thanks for your reply.

sorcerer

Come June time I will have an ISA worth £100,000 in about 15 income funds. But I don't want HL taking any of the income from it. If this is going to cost me about £500 it makes sense to me to either move to Cavendish at 0.25% or £90 a year with Alliance trust. Saving me 410 in the first year alone. Since I will only add new money in April each year, my fund buys will be small.


My concerns are, am I reading this wright, since this whole RDR thing is confusing me know? And if I do change what is to stop the next broker from increasing their charges soon after, how much of this is set in stone.

sorcerer

I hate to move because I also love their website, and I have never had any issues with them. But their fees are looking like the most expensive of all the brokers. I will keep my SIPP their for the time being since it's valued at a lot less, I am currently more concerned about my ISA.

jimjames

sorcerer wrote: »

Come June time I will have an ISA worth £100,000 in about 15 income funds. But I don't want HL taking any of the income from it. If this is going to cost me about £500 it makes sense to me to either move to Cavendish at 0.25% or £90 a year with Alliance trust. Saving me 410 in the first year alone. Since I will only add new money in April each year, my fund buys will be small.


My concerns are, am I reading this wright, since this whole RDR thing is confusing me know? And if I do change what is to stop the next broker from increasing their charges soon after, how much of this is set in stone.

Nothing is set in stone and charges could change at other brokers. But most have already revealed their pricing a long time before HL so are unlikely to need to change.

If you are happy with the HL website and their service and happy what you've been paying up to now then you will be (almost certainly) paying less now than you were previously so no need to move because you think you are being charged more. It is just the charges previously were hidden and are now apparent.

1.5% fund charge, 0.17% rebated back to you is a lot higher cost than 0.65% fund charge and 0.45% service fee to you.

Previously £1500 fee pa with £170 back, now £1100 pa so still cheaper than before.

You may still get a cheaper service elsewhere but only you can decide if paying the premium for the Waitrose service as they call it, is worthwhile for you.

sorcerer

One of the problems I see is that some of the other platforms have pretty basic websites, for example with Alliance Trust I can't even work out how you see what funds you can have with them. I guess this is a way they save money. It's annoying HL didn't give us more time, because it's going to take me a while for find another fund supermarket I am happy with, and don't charge me a fortune.

dunstonh

sorcerer wrote: »

One of the problems I see is that some of the other platforms have pretty basic websites, for example with Alliance Trust I can't even work out how you see what funds you can have with them. I guess this is a way they save money. It's annoying HL didn't give us more time, because it's going to take me a while for find another fund supermarket I am happy with, and don't charge me a fortune.

You get similar differences in the IFA world. Some platforms are basic. Some are just fund supermarkets, some are full trading wrap platforms. They are not all equal. People really need to do their research and not focus on price alone.

rpc

sorcerer wrote: »

One of the problems I see is that some of the other platforms have pretty basic websites, for example with Alliance Trust I can't even work out how you see what funds you can have with them.

http://www.alliancetrustsavings.co.uk/forms-documents/formal-documents/list_of_funds.pdf


HL do have one of the best websites. For some, that may be worth paying for. For others, it won't be.

Totton

dunstonh wrote: »

You get similar differences in the IFA world. Some platforms are basic. Some are just fund supermarkets, some are full trading wrap platforms. They are not all equal. People really need to do their research and not focus on price alone.

Very good advice imho. My own calculations show that assuming a 5% growth in portfolio value per year, then over 10yrs a potential saving of several grand can be made if I switch solely to IT's. This is compounded because the account fee is not capped for funds. However, if you add in the cost of trades and stamp duty then year 1 is costlier whilst subsequent years are cheaper provided dealing is kept to a minimum. Should you trade often then expect the 10yr cost to not be dissimilar than if I had just kept the OEICS.

takesyourchances

dunstonh wrote: »

You get similar differences in the IFA world. Some platforms are basic. Some are just fund supermarkets, some are full trading wrap platforms. They are not all equal. People really need to do their research and not focus on price alone.

HL's website is excellent and very easy to get around and others I seen don't look to be as good and basic. I guess it comes to if you want to continue with their web site you need to pay their premium.

At the moment on my amounts it is not huge money on fees, I am maybe considering staying until such times my ISA pot becomes bigger and the fees are really noticeable.

Few months to decide or maybe longer, I won't rush but I think I would be prepared to pay a bit more in fees than have a company with a very basic and not so good web site to work with and not go solely on the lowest priced option.

.