Iii

Mat_P

Is my logic at fault here thinking this is bizarre ?

No commission 'credit' in hand but free funds in the trading account.

On placing a trade in my ISA account the fee is taken from the funds in the ISA (eg trade for say £1000 becomes £990) rather than the free funds in the trading account.

I'm told that's the way it is lump it ?

Linton

Mat_P wrote: »

Is my logic at fault here thinking this is bizarre ?

No commission 'credit' in hand but free funds in the trading account.

On placing a trade in my ISA account the fee is taken from the funds in the ISA (eg trade for say £1000 becomes £990) rather than the free funds in the trading account.

I'm told that's the way it is lump it ?

That's the way it is, but is anywhere else different?

le_loup

It is the way that it is with III and H-L.

bowlhead99

If you incur costs for trading or stamp duties etc within a tax-privileged account, they come out of that account. If it was a pension for example you would want to be able to use your tax-relieved salary to pay them.

For an ISA you would prefer not to incur costs within the account because there is a cap on how much money can go in every year and you would rather be able to pack it full of pure investment rather than have the pot dwindle away to fees.

Some providers allow the annual costs of simply providing an annual admin service to an ISA, to be paid outside the ISA, preserving your allowance. So you could pay those fees by direct debit from your bank, or out of a trading account with the same broker, or on a debit card or whatever. HMRC allow that, although not all ISA providers support it.

However, I've not seen that ability extend to the costs payable on individual transactions.

Typically a broker wants to get paid to settle his costs, the stamp duty, and the cash settlement amount for the individual trade that goes to the person selling or issuing the shares, and all of these things get charged to the account of the buyer. If the buyer is your ISA nominee or a SIPP nominee then that 'entity' needs to have the cash to pay for it. So if you want to be able to buy £1000 of investments in the ISA or SIPP then you would need to position yourself with £1010 cash in the ISA, by making an extra £10 contribution into the ISA - whether by moving it from trading account or moving it from your own bank account or wherever.

Mat_P

Thanks for the replies.

Clearly thinking it would be logical to preserve the ISA pot and take the fees from available funds elsewhere wasn't as logical as I thought.
Again as they take the platform cost from the trading account (if the funds are there I guess) rather than the ISA fund it seemed straightforward for indivdual transactions to be charged similarly.
Live and learn

Thanks again

inflationbuster

Been over 2 months and still can't buy or sell my EROS shares. Customer service don't care and can't even give me an ETA when this will be sorted.

It's a real shower of you know what.

JenniferK

inflationbuster wrote: »

Been over 2 months and still can't buy or sell my EROS shares. Customer service don't care and can't even give me an ETA when this will be sorted.

It's a real shower of you know what.

Try making a comment on their Facebook page. Seems to get their attention. Also submit a formal complaint.

ctdctd

Just checked my ii messages and they say they are going to take £180+VAT next week to cover my annual SIPP fee.

Which is odd, as their SIPP pricing is £80+VAT annually + £20 per quarter.

Update:- Response within 2 hours - £180 was a typo.
So :beer: for the response, but I would have thought admin messages would be fully automated to remove risk of typos!

DiamondLil

At the risk of tempting Providence, dividends due today were in my account yesterday.
Here's hoping.....

JenniferK

ctdctd wrote: »

Update:- Response within 2 hours - £180 was a typo.
!

They do it manually? Explains all the !!!! ups that they make.