Stocks & Shares ISAs

Nardge

 

Good afternoon Forumites!


Many thanks Masonic and Alexland for the further assistance and guidance.


Stocks and Shares ISA

The Vanguard £100 K currently held as Life Strategy 100 awaits in specie transfer to iWEB where it'll be reinvested as HSBC FTSE All-World Index Fund.

The Cash ISA £80 K has been reinvested with Interactive Investor as HSBC FTSE All-World Index Fund already .

 - Holding the above monies as a) Index Fund (not as ETF) and b) on two separate platforms will promote their safety?

- It’s a matter of time before I’ve breached 85K for both separate platforms. I’ll therefore have to consider using a third additional Platform, or be ‘reassured’ in the knowledge that for the HSBC FTSE All-World Index Fund to actually crash, a cataclysmic event so seismic that money would cease to have any monetary value would need to occur?

Ongoing monthly investments will be with Trading 212 as Invesco VWRG ETF. These can be reinvested as HSBC FTSE All-World Index Fund once a sum large enough to warrant a third future platform is attained.

LISA

This is invested with AJ Bell Dodl as HSBC FTSE All-World Index Fund. It'll be reinvested with AJ Bell's parent site as Invesco VWRG ETF once a sum of approximately £30 K is reached. This will permit the lower fee at a capped rate of £42/Year available for ETFs (contrast Index Funds) on larger sums there. Due to lower fees, Invesco VRWG ETF will be used in lieu of HSBC FTSE All-World Index Fund once monies are shifted to Fidelity.

SIPP

As my current investment remains small, Invest Engine’s 0.15% fee (capped at £200/Year) SIPP remains cheapest. It can be transferred in specie to Fidelity once a value of approximately £80K is reached. This will permit the lower fee at a capped rate of £90/Year available for ETFs (contrast Index Funds) on larger sums there. Due to lower fees, Invesco VRWG ETF will be used in lieu of HSBC FTSE All-World Index Fund.

LISA & SIPP 

- Since I’ll be investing in the same Invesco VWRG ETF for both, if/when the £85 K mark is breached for either (unlikely for the LISA), to benefit from ongoing FSCS protection, opening a further Platform/ETF LISA/SIPP combination would be advisable?

- I’ve learned that being a Pension, a SIPP has all its monies FSCS-covered anyhow, not just the first £85K? Is this so?


I'd be very grateful for any replies, 

With Kind Regards.

dunstonh

- I’ve learned that being a Pension, a SIPP has all its monies FSCS-covered anyhow, not just the first £85K? Is this so?

Only if you use insured funds.   There are a couple of SIPPs that use insured funds but typically you would need stakeholder pensions or personal pensions to access insured funds.

- Holding the above monies as a) Index Fund (not as ETF) and b) on two separate platforms will promote their safety?

ETFs don't get FSCS protection and are generally considered to be a notch higher on the risk scale relative to their unit trust/OEIC equivalent.  Most people using ETFs wont care about that.

Two platforms does not give the fund double FSCS protection. it remains £85k per fund house.  The only thing it may help on if the rare software issue with one platform.   However, its worth noting that there are 2 major software players that cover around 70% of platforms.   The front end is controlled by the provider but the backend is controlled by the software company.   So, if you are paranoid about software, then make sure you use platforms that use different software.

- It’s a matter of time before I’ve breached 85K for both separate platforms. I’ll therefore have to consider using a third additional Platform, or be ‘reassured’ in the knowledge that for the HSBC FTSE All-World Index Fund to actually crash, a cataclysmic event so seismic that money would cease to have any monetary value would need to occur?

it's probably best not to use the word crash when you actually mean failure.  The fund itself will crash relatively frequently.    

I-W

Is there any advantage of going with an established platform (i.e. AJ Bell) or a less established fee free platform (i.e. Trading 212)? Obviously S&S always a risk, but is the platform went bust would your investments be 'safe' as with investment and not platform?

dunstonh

I-W said:

Is there any advantage of going with an established platform (i.e. AJ Bell) or a less established fee free platform (i.e. Trading 212)? Obviously S&S always a risk, but is the platform went bust would your investments be 'safe' as with investment and not platform?

Yes, your choice of platform and its financials are important.   Along with the types of assets that dominate the platform.   High volumes of illiquid assets are a drag on the platform and can take it under.      A platform reliant on sugar daddies that doesn't make profit will only have a finite timescale to either hit profit or be sold or close down.

bigyellowsunflowers

Would someone be able to recommend AJ Bell or a more established platform for a S&S ISA? I’ve decided this year and going forward  to move all my ISA savings to mainstream providers but as I am new to S&S ISA I don’t know where to begin. I understand the more established platforms are more expensive and although I’ve made peace with that I’d rather get a good balance of customer service, ease of use, and lower fees. I also don’t want to use video verification ( like as T212 requires - as a preference). Thanks in advance.

masonic

iWeb (a brand of Halifax Sharedealing) may be cheaper depending on how frequently you trade. Either option is established and well capitalised.

bigyellowsunflowers

masonic said:

iWeb (a brand of Halifax Sharedealing) may be cheaper depending on how frequently you trade. Either option is established and well capitalised.

Thanks masonic I’ve looked into both and I am leaning towards iWeb.

gesdt50

When folk or advice people of a financial background talk of been charged for selling a trade. Do they mean a single company trade sell like say Microsoft or a Portfolio of companies even with thousands can be defined as a trade?

eskbanker

gesdt50 said:

When folk or advice people of a financial background talk of been charged for selling a trade. Do they mean a single company trade sell like say Microsoft or a Portfolio of companies even with thousands can be defined as a trade?

Not sure I've read any talk of 'selling a trade' but a trade will generally be a transaction comprising a number of units of an individual entity, so n shares of Microsoft, or y units of a fund, i.e. buying or selling a portfolio of multiple different investments requires multiple trades.

gesdt50

eskbanker said:

gesdt50 said:

When folk or advice people of a financial background talk of been charged for selling a trade. Do they mean a single company trade sell like say Microsoft or a Portfolio of companies even with thousands can be defined as a trade?

Not sure I've read any talk of 'selling a trade' but a trade will generally be a transaction comprising a number of units of an individual entity, so n shares of Microsoft, or y units of a fund, i.e. buying or selling a portfolio of multiple different investments requires multiple trades.

Meant platforms, trading companies like AJ Bell 212, Iweb charge for a trade?, so wondering about if a trade is just 1 unit or company or can be  numerous companies sold, transferred as a trade though suspect it's only a sell one rather and transfer been possible(trying to cover many bases in the query)

"number of units of an individual entity", Is this like sub companies or a number of companies or brands under Microsoft, similar to Google owns YouTube and many more titles?