Hargreaves Lansdown charges.

Forever

Lokolo wrote: »

I was thinking the same until you realise the number of charges (from June) you get hit with when you finally want to leave.

£25 to transfer in cash + £25 closure fee, although I suppose you don't have to pay the closure fee. But I suppose on a £25k portfolio thats only a 0.2% fee.

50 pounds to leave Hargreaves sounds a bit steep. At the moment, it is free for me if I want to cash in and transfer or keep the money.

I only currently have 6,500 invested with HL but I don't really want a total 50 fee eating into my profits if I ever want to leave either.

On the other hand, I currently hold Fidelity Small Companies, which is soft closed, so I really don't want to loose it!

Decisions, decisions....

takesyourchances

westy22 wrote: »

When I recently completed an in specie transfer of some 20 holdings to another provider I was pleasantly surprised to see that all of the 'history' came along with the shares including original cost prices, profits etc.

This is what I mean I would like if transferring to another platform, to keep all my holdings, to keep the history of the drip feed buys and the original cost prices, profits etc.

Thanks.

Lokolo

Forever wrote: »

50 pounds to leave Hargreaves sounds a bit steep. At the moment, it is free for me if I want to cash in and transfer or keep the money.

I only currently have 6,500 invested with HL but I don't really want a total 50 fee eating into my profits if I ever want to leave either.

On the other hand, I currently hold Fidelity Small Companies, which is soft closed, so I really don't want to loose it!

Decisions, decisions....

Then you have a choice, cash in the rest of your funds. It will be free to transfer and close account before June. It will cost you £25 to transfer your Fidelity Small Companies. But when you transfer it, unless it is available on the new platform (were you the one who emailed CSD?) then you won't be able to purchase more.

cepheus

As mentioned on the other thread, do your calculation carefully before switching. This revelation on how much the industry charges is shocking, but most of us knew this previously. I doubt if many people will benefit from moving away from HL especially if they frequently trade closed ended funds.

I notice http://www.comparefundplatforms.com/ don't actually provide a cost per year. They encourage you to calculate how much your portfolio is worth between the different platforms assuming the stock market continues it's growth, encouraging you place assumed positive figures and multiple years ahead. I would like a single figure for cost per year assuming zero growth! What they all try to discourage is those with large portfolios discovering how much they are being charged.

I also notice that HL deal in 2500 funds, the next largest Interactive investor less than 2000. Most platforms offer much less.

Rollinghome

Lokolo wrote: »

I was thinking the same until you realise the number of charges (from June) you get hit with when you finally want to leave.

£25 to transfer in cash + £25 closure fee, although I suppose you don't have to pay the closure fee. But I suppose on a £25k portfolio thats only a 0.2% fee.

The closure fee is £25 +VAT so £30 and seems to be per "account". So if you have an ISA and non-ISA account it would be £30 for each: £60.00 plus the transfer fees on top. If you don't have a non-ISA account then I assume all their fees will be taken from the ISA account depleting the value of your ISA pot.

If there isn't enough cash to pay any fee they'll charge yet another fee to sell units to pay the fees.

They seem to be already enforcing the term that they'll close your account if the balance falls below £50. I tried to remove a few pounds left in a non-ISA account and got the warning that if I did the account would be closed.

Anyone staying with them will need to be careful with all those sneaky new little fees adding up: 1% for reinvestment of income (both for funds and shares so reducing income by 1%), £1.50 each time they sell your funds to take their fees, £12 for corporate actions, £12 for each statement.... The biggy is the £30 per fund held for probate valuations, that's £450 if 15 funds are held, so not the place to be if you're expecting to fall off the perch any time soon.

Freecall

pip895 wrote: »

Why would selling the units on one platform and buying the same units on another platform undo your original dip feeding in.????
Or are you just worrying about what it is reporting as your profit on the web site? You are likely to loose this reported profit on transfer anyway. Your real profit and the benefit of pound cost averaging are yours to keep.


It is essentially the same as transferring only potentially quicker.

As a slight side issue, if anybody is thinking in terms of reported profit figures on the screen after moving, II's site allows you to set your own purchase price if you want.

cepheus

Rollinghome wrote: »

Anyone staying with them will need to be careful with all those sneaky new little fees adding up: 1% for reinvestment of income (both for funds and shares so reducing income by 1%), £1.50 each time they sell your funds to take their fees, £12 for corporate actions, £12 for each statement.....

Yes they are sneaky, we also need to remember asking them to change any holdings over to the new charging structure on 1st March. I wonder why they are allowed to try this on?

I think most of those charges can be avoided though. Presumably if you don't reinvest income there is no charge and if you leave cash in the account they will take this rather than reselling. We need to cancel paper statements as well.

retiree

cepheus wrote: »

Presumably if you don't reinvest income there is no charge

Can anybody confirm this? I have previously asked for ISA income to be reinvested, but now it seems that reinvestment will be triggered at a level as low as £10 and there will be a minimum charge of £1 - proportionately high on small holdings, and therefore dividends, such as that on 227 Royal Mail shares.

I'm wondering whether to change my instruction so that income is not automatically reinvested and letting it build up to reinvest in larger chunks when I see fit.

Rollinghome

cepheus wrote: »

Yes they are sneaky, we also need to remember asking them to change any holdings over to the new charging structure on 1st March. I wonder why they are allowed to try this on?

I think most of those charges can be avoided though. Presumably if you don't reinvest income there is no charge and if you leave cash in the account they will take this rather than reselling. We need to cancel paper statements as well.

Yes, if you leave cash in the account they'll use that to pay fees but if that's your ISA account you''l be reducing your ISA pot. If to avoid that you keep a non-ISA fund and share account for paying fees you'll have to keep a minimum of £50 in it or they'll close it and charge you a £30 account closure fee.

All the fees will be on top of what are the most expensive platform and share-dealing fees around already.

We'll need another thread of wheezes to foil their charges.

cepheus

Rollinghome wrote: »

Yes, if you leave cash in the account they'll use that to pay fees but if that's your ISA account you''l be reducing your ISA pot. If to avoid that you keep a non-ISA fund and share account for paying fees you'll have to keep a minimum of £50 in it or they'll close it and charge you a £30 account closure fee.

All the fees will be on top of what are the most expensive platform and share-dealing fees around already.

We'll need another thread of wheezes to foil their charges.

yes it would be useful for a more complete analysis to check my calculations against. I'm still not finding HL more expensive for open ended funds after March even assuming the standard fund percentage of 0.75% plus 0.45% for the platform and capped ISA/SIPP charge. Has anyone uploaded a spreadsheet yet?

Rollinghome wrote: »

All the fees will be on top of what are the most expensive platform and share-dealing fees around already.

I disagree that any of our threads have proven that yet, and I'm concerned people may be jumping too quickly.