Leaving HL

jimjames

No_Santander wrote: »

20 bps on 10k is 20.
even 45 bps compare to 0 is 45 gbp.

assume you get 200k, that is 400 gbp in absolute terms.

I think I do need a bit of maths really.

£400 - not one off - per year. Every year. So if you hold long term say 20 years that's £8000. When you could have only paid £5 for the same thing (if using iWeb)

Would you prefer an £8000 boost to your portfolio or help swell HL profits? Obviously as someone who holds a FTSE tracker which includes HL shares I'd rather like it if you help boost their profits but I'd also rather like to maximise my own portfolio too.

No_Santander

I agree with you fully if all you want to do is hold ETF trackers with ISA wrapper.

Was thinking about case involving fund as well. HL gives discount on annual fund charges.

masonic

No_Santander wrote: »

Was thinking about case involving fund as well. HL gives discount on annual fund charges.

The vast majority of funds are not discounted. Of those that are, most are discounted by 0.1% or less. There are a few that discount by 0.2% or more. This page covers discounts on the Wealth 150 funds (switch view from Wealth 150+ only), which is not a comprehensive list of funds that have a discount, but includes most of them.

No_Santander

Thanks

happened the Lindsell Train one I bought offered 20bps.

Is there a way to check how much is fund charge on iweb please? Or it is simply the standard rate?

I checked Fidelity, it seems they add extra service feed on top.

jimjames

No_Santander wrote: »

Thanks

happened the Lindsell Train one I bought offered 20bps.

Is there a way to check how much is fund charge on iweb please? Or it is simply the standard rate?

I checked Fidelity, it seems they add extra service feed on top.

It should be the standard rate but you can check on their site.

By the way fidelity do not have an extra service fee, that's just the equivalent charge to the HL platform charge.

jimjames

No_Santander wrote: »

I agree with you fully if all you want to do is hold ETF trackers with ISA wrapper.

Was thinking about case involving fund as well. HL gives discount on annual fund charges.

I only hold funds not etfs.

HL have very good marketing to push the notion that the reduced fees on a few funds are a discount across the board which they are not.

No_Santander

thanks to you both, jimjames and masonic.

I learned my lesson here. Need to be more careful reading marking material going forward.

masonic

No_Santander wrote: »

Is there a way to check how much is fund charge on iweb please? Or it is simply the standard rate?

You can get to the list of funds they offer here. I don't think they have much in the way of special discounts.

I checked Fidelity, it seems they add extra service feed on top.

Yes, they seem to have split it into two parts and you also need to open different types of account to get access to funds vs investment trusts vs shares, which is a drawback.

dunstonh

Can you please tell us a bit more why you think HL is expensive please?

Another thing to realise is that HL, unlike the majority of platforms, treat each account individually. So, if you had £100k in ISA, £100k unwrapped in a GIA and £100k in a pension, most platforms would put you in the charging tier for £300k. HL do not. They treat each account as a single entity. A number of platforms also link family members which can reduce charges further.

Rollinghome

No_Santander wrote: »

Also, did you compare charges on trading? Do you get discount buying open end fund and discount on yearly management fees?

Be also aware that in true Hargreaves Lansdown style, the claimed "discount" may be nothing of the sort.

You need to read the details carefully as here... "The ongoing saving on this fund is delivered through 'discounted units'. This means the fund manager has launched a new version of the fund which has lower charges built-in. The standard on-going charge shown is the price of the units which would be purchased without this discount."

This means that exactly the same "discounted units" can often be bought with the the same OCF (management charge) from various other platforms and some offer classes of funds with a lower OCF than those offered by HL. Their "discount" can be as real as Tesco's ever present "discounts" on Aussie plonk.

HL's marketing should always be treated with suitable scepticism: