iWeb opening fee increase

LEAR1

Different but related question -

I'm currently a client and have been for a few years (though only actively using their services for last 4-5 months).

I was in the process of organising to transfer over my wife's ISA from HL, only to just miss this (by a matter of days) and so now left with the large opening charge. I'm seriously considering going elsewhere - eg. SVS or X-O - to avoid the £200 outlay. However, I tried calling iweb, explaining that I held over £60k with them, has been looking to transfer over another £20k (my wife's current ISAs), and then make full allocations of the new (15-16) ISA allowances to each account (so putting c.£110k AUM with them in aggregate). To my surprise, they were unwilling to budge on the fee, even though I have a reasonably active trading history over last few months and explained my wife would too. They stipulated they could not do so as it would be unfair to other clients.

Is this correct - or does anyone think I should have one more go? I am keen to keep all funds with one place for the time-being, for administrative ease + better the devil you know.

Alternatively, does anyone have any reason to believe they might (i) back-down from this very punitive initial charge (as presumably new client numbers must be dropping significantly), or (ii) advertise periodic offers which grant a reduction in the entry fee to encourage more inflows from new clients?

Any thoughts appreciated.

Thanks

TCA

LEAR1 wrote: »

I'm currently a client and have been for a few years (though only actively using their services for last 4-5 months).

Is this correct - or does anyone think I should have one more go?

I thought the account opening fee was only for the first account you opened, so if you've already paid the old £25 fee, then you can still open an ISA free of charge.

soulsaver

TCA wrote: »

I thought the account opening fee was only for the first account you opened, so if you've already paid the old £25 fee, then you can still open an ISA free of charge.

His wife's ISA... can't be in his name.

TCA

soulsaver wrote: »

His wife's ISA... can't be in his name.

You're quite correct. Missed that bit. Apologies for the duff information.

jimjames

LEAR1 wrote: »

Is this correct - or does anyone think I should have one more go? I am keen to keep all funds with one place for the time-being, for administrative ease + better the devil you know.

Alternatively, does anyone have any reason to believe they might (i) back-down from this very punitive initial charge (as presumably new client numbers must be dropping significantly), or (ii) advertise periodic offers which grant a reduction in the entry fee to encourage more inflows from new clients?

Any thoughts appreciated.

Thanks

I think it is unlikely they will change their mind.

£200 is still a massive saving compared to HL as it is a one off not an annual fee. HL is £450 per year for £100k, so you save £250 in year 1 and £450 every year afterwards.

LEAR1

jimjames wrote: »

I think it is unlikely they will change their mind.

£200 is still a massive saving compared to HL as it is a one off not an annual fee. HL is £450 per year for £100k, so you save £250 in year 1 and £450 every year afterwards.

Yes, I see the logic and agree JimJames - it's just hurts outlaying that much on day 1. (Incidentally, my wife's ISA is all investment cos and shares, so the saving isn't so much on the annual charge, but the trading costs - 29 trades needed to break-even, which is not hard to see happening in the space of 1-2 years.)

I'm minded to try SVS to avoid the cost (but accept an extra 75p per trade). I'll need to trade 266 times with them before incurring >£200 difference, which feels a long, long way away...

Chickereeeee

LEAR1 wrote: »

To my surprise, they were unwilling to budge on the fee, even though I have a reasonably active trading history over last few months and explained my wife would too. They stipulated they could not do so as it would be unfair to other clients.

I much prefer this approach to that of HL, where it seems it depends on who you talk to, how much you invest and luck as to if they will change their charges or not.

C