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Best Fund Platforms for Quick Dividends Payout

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  • masonic
    masonic Posts: 27,222 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    sorcerer wrote: »
    But I just can't face another 4 months of transfers and questions.
    If you transfer in cash, you'll be spared all that.
  • sorcerer
    sorcerer Posts: 878 Forumite
    The problem with going into cash, it will cost me £300 to sell everything, I would lose about £1000 in losses because my portfolio is in a loss, and for every month I am out of the market I will lose £500. So I could lose £3000, just to transfer to another broker.
  • masonic
    masonic Posts: 27,222 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I think it may be a little unfair to include your accumulated capital losses in your transfer costs (if you change your portfolio after transferring, you would have to realise these anyway and if you don't and repurchase the assets, you will only gain or lose the difference in fund price while you are out of the market). As far as the cost of being out of the market, you need to include both capital appreciation and income, so it could be more than £500 per month, or it could be less, but a cash transfer is likely to take a couple of weeks and is almost certain to complete within a month. Also, your trading costs will be a maximum of £200 because after 10 trades you will be charged at £5 per trade.

    It really depends how badly you want to avoid in specie. Personally, my transfer from HL to II was moderately slow, but relatively painless, so I wouldn't be put off going through it again, but I know others take a different view.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    sorcerer wrote: »
    The problem with going into cash, it will cost me £300 to sell everything,
    You might get discounted fees if you are selling a lot of things the same month? Or you sell a lot of things one month and qualify for 'frequent trader' rates the next month when you sell the rest? Depends on the provider but many of them do it.

    Also remember if the platform you move to has transaction fees, there will be a cost of re-buying at the other end. Although you might decide you don't need as many as 30 positions when you get the opportunity to refresh the portfolio, so if you moved from 30 to 20 positions, some of the cost is just a sale transaction fee on 10 holdings that would have happened anyway somewhere down the line, eventually.
    I would lose about £1000 in losses because my portfolio is in a loss
    You're thinking about that wrong. Say you have a £100k portfolio which had originally cost £101k, but has some unrealised losses across your various holdings. Basically what you have today, right now, is £100k of assets. When you move the proceeds to AJBell or wherever, they will still be £100k of assets (well, less what you spent in transaction fees that you've already counted above). And they will show up on the new provider's system with a £100k cost instead of a £101k cost, because the new provider doesn't know your history.

    But as you're operating inside a tax-free wrapper, costs versus sales price is irrelevant for all practical purposes. You go from 100k assets at provider A to 100k of assets at provider B. If that 100k had originally been 120k before your assets underperformed, you don't "lose" 20k by changing providers. If it had originally been 80k, you don't "gain" 20k by changing providers. You have 100k today and you keep the 100k. Apart from transaction costs which we already covered.
    and for every month I am out of the market I will lose £500.
    That's true, although you might of course gain if the markets go down, or lose more than £500 if the markets go up by more than your expected return of about 6% a year. But if you're doing a simple cash transfer from one provider to another, together with maybe 3 days to settle the sales at one end before the cash can start to move, and a day to book your purchases at the other, I would expect this to be over inside a month, easily.
    So I could lose £3000, just to transfer to another broker.
    I think you're exaggerating the situation and it's more like
    £2-300 of sales fees,

    £150 of re-buy fees (assuming 30 funds at AJ Bell Youinvest; could be zero at other platforms who have different annual vs transactional fee structures)

    £500 for being out of the market a month at the most at 6% return per year on £100k (of course, actual results could be more like £2500 or -£2500 or more or less depending on what the market actually does)

    With those assumptions it's looking more like £1k not £3k to change providers. So it depends whether you want a one time hit to your portfolio of c. 1%, or not. If you think the hassle of staying with a provider you don't like for the next 10 years is costing you 0.1% a year in mental anguish (or actual lost dividends that they forget to put in your account, which seems unlikely TBH), you can easily make a case for moving - and spending the 1% once now for a hassle free existence thereafter.
  • sorcerer
    sorcerer Posts: 878 Forumite
    You do have a good point about the value of the fund. I guess even if I realise a loss of £1000 now, then rebuy at that price, if the base price goes back up, I could still make that £1000 back.
  • sorcerer
    sorcerer Posts: 878 Forumite
    Just another update, apparently I have been told their system is "Broken" and lots of people are not getting their dividends, not that this makes me feel any better.


    Since that's like a bank saying our systems are broke, and we can't give you your money. People would be screaming if that was the case, but since only a smaller number of people will get getting dividends I guess most people don't care, or don't know.
  • Nixter
    Nixter Posts: 69 Forumite
    edited 16 July 2014 at 2:04PM
    sorcerer wrote: »
    Just another update, apparently I have been told their system is "Broken" and lots of people are not getting their dividends, not that this makes me feel any better.

    Did you hear this from iii themselves or a third party? They have been completely silent for the last couple of weeks.

    One can only wonder how their FOS fines a racking up.

    I have now five separate complaints reaching the 8 week mark quite soon.
  • sorcerer
    sorcerer Posts: 878 Forumite
    I got this direct from II, they use a third party provider called FNZ to pay the dividends, apparently it's this system that isn't working correctly, which has lead to a big backlog of dividends. No idea when they are planning on fixing it.

    Nixter wrote: »
    Did you hear this from iii themselves or a third party? They have been completely silent for the last couple of weeks.

    One can only wonder how their FOS fines a racking up.

    I have now five separate complaints reaching the 8 week mark quite soon.
  • sorcerer
    sorcerer Posts: 878 Forumite
    I did get one dividend last night, but still missing another 4.
  • le_loup
    le_loup Posts: 4,047 Forumite
    Where these end of June due dividends?
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