Can someone explain to me the deal with HL?

MonkeyD

Hi,

Ive been trying to understand the reason behind the exodus from HL services as I have a stocks and shares ISA with them. I only hold one share to the tune of a couple of grand. I do not deal frequently and have no interest in funds at the moment.

Do I need to move to a different provider?

I have been trying to go through the official thread here but there is a lot in there that is specific to members who need access to funds and such.

Should I be concerned about their annual management fee? This is because my holding is quite small so the fee might hurt any profits that I have made.

I am new to all of this so would really appreciate any insight.

ColdIron

0.45% on a couple of grand is £9 pa, I wouldn't be too worried unless my situation changed radically

masonic

You'll be paying 0.45% per year to hold the share with HL and that hasn't changed. If it is a UK share, then there are a number of brokers who will not charge you at all to hold it and have cheaper dealing costs (around half the price). However, 0.45% of £2000 is only £9, so your potential savings are not going to be very large.

ColdIron

masonic wrote: »

You'll be paying 0.45% per year to hold the share with HL and that hasn't changed

It is ever so slightly cheaper than it was before. The annual fee for shares was 0.5% so the OP is quids in. Well a quid

yatinsardana

I agree with the comments so far. Currently I'm in a similar situation as you but with 2 holdings. So although HL in the bigger scheme of things isn't the cheapest, it doesn't really affect someone like yourself or me THAT much. Although, I had decided to stick with HL as a result for the moment, I have recently decided to change that decision and I'm moving to III.
I don't think from the information you've given that you need to do that. My reasons for changing are different (as discussed in https://forums.moneysavingexpert.com/discussion/4924323)

I think the service you get from HL is good. The 0.45% charge seems a lot when your portfolio is very big but like mentioned above for you it's a matter of £9 which isn't much at all.

Should your portfolio increase in size or should you decide to move to funds, you can re-evaluate your position.

MonkeyD

You guys are amazing, thank you for your quick replies. I have mistakenly added a couple of 00s when I calculated the fee hence my panic

What if I wanted to close the account, is it only the £25 per holding that I have to pay?

Many thanks again!

ColdIron

Probably the only thing worth adding is that HL will start to charge an exit fee in June, £25 + VAT, so if you were to move better sooner than later but all in all you are fine where you are

yatinsardana

Yeah so like ColdIron has mentioned, it will be £25+VAT exit fee from June onwards, £25 per holding and my understanding also is that £25 for cash transfer too.
So the reason that I'm moving is that although it doesn't make much of a difference to me at the moment, I plan to start saving a lot this year onwards and so with decent planning and discipline, I shall get to a point quite soon where the 0.45% starts hurting me.

If you're in a similar position and want to start saving to invest then you may want to consider your position.

Here's a link to the monevator's comparison table for all the different brokers and their charges. http://monevator.com/compare-uk-cheapest-online-brokers/
Before you look at it, you should think to yourself what kind of investor you see yourself be in the future. I know you've said you're not interested in funds and have 1 stock holding - but do you see that remain the case in the near future. Once you've decided upon that, see the comparison table and see what suits you best according to your own needs.

MonkeyD

So, if I was to move before June, would the £25 + VAT not apply? I say this because in the big HL thread here I saw that other members were offered a fee waiver of sorts. I've been looking at their website and the only fee I could see is that £25+ VAT one.

masonic

MonkeyD wrote: »

So, if I was to move before June, would the £25 + VAT not apply? I say this because in the big HL thread here I saw that other members were offered a fee waiver of sorts. I've been looking at their website and the only fee I could see is that £25+ VAT one.

If you sell your holding and move in cash before June then it would be free. Otherwise there is the £25 charge for re-registering your share now, and in addition, the account closure fee of £25+VAT and cash transfer fee of £25 coming into effect in June.

yatinsardana

MonkeyD wrote: »

So, if I was to move before June, would the £25 + VAT not apply? I say this because in the big HL thread here I saw that other members were offered a fee waiver of sorts. I've been looking at their website and the only fee I could see is that £25+ VAT one.

http://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges
On here, at present only the £25 per holding charge applies when transferring out. From June onwards, there will be a new £25+VAT exit charge and a £25 cash transfer charge.

I haven't really seen the big HL thread in detail but I would've thought that they would offer to take away some of these charges and everything if:
1) it meant you stayed with them
2) if you had a big enough portfolio that would further mean they'd get a big enough interest charge from you

But I'm not sure, you could always try and negotiate. No harm in doing that. But what will you be negotiating really? For them not to charge the exit fee, doubt they'd agree to that because there's nothing in it for them.