Tracker Fund - Go direct or via platform?

TheTracker

Snowman's sheet is good, but also note Monevator's Cheapest Online Broker comparison was updated last week. In this comment you can see the best broker based on common request types.

coyrls

Perdu wrote: »

Well that Snowman's an absolute star.

I've now phoned 12 platforms and it would seem my options are limited. I'll list them here in case it helps others in similar financial exile..:o

UK residents only:
IWeb
AJ Bell
Charles Stanley
Cavendish
Halifax
X-O
BestInvest

AllianceTrust I have tried to reach 6 times over 2 days and a total of 35mins holding. I hate giving in so even tried their main number who just said " Cust Services very busy probably due to Christmas :huh: and just keep trying..." Hmm..

I have found four so far who said they will open an account for non-UK residents - I think I have their charges right but will have to check:-

Hargreaves Lansdown - at .45% is v pricey on large lump sum.
TD Direct - slightly better but .3% still more than the VLS itself.
III - dirt cheap at £ 80 pa (?), but I've noticed the threads!
Trustnet Direct - seems to be .25% capped at £200pa plus £10 per trade.

If I've made an error or if there are any more (fixed fee or low capped) I'd be most grateful for the heads up, otherwise I'll probably follow up on Trustnet.

Just a warning that Trustnet Direct's "transactional platform" is Interactive Investor and you should apply any reservations that you have about Interactive Investor to Trustnet Direct. In my experience Trustnet Direct has the same "issues" as Interactive Investor.

grey_gym_sock

that's good effort researching, Perdu.

2 more platforms which are cheap for putting a large lump sum in a fund - though i have no idea whether they accept non-residents:

selftrade: charges nothing to buy funds, £12.50 to sell, and inactivity fees which amount to £42 p.a. at most.

the share centre, if you pick the frequent dealing option: £7.50 to buy or sell, plus £117.60 p.a. (note that you can cut the annual charges by switching to the standard dealing option, but make sure not to actually buy or sell while you're on standard dealing, because the charge for that is 1% uncapped).

coastline

Maybe this..

https://www.barclaysstockbrokers.co.uk/Accounts/MarketMaster/pages/Rates-and-charges.aspx

https://www.barclaysstockbrokers.co.uk/Accounts/Forms/Pages/default.aspx


Funds are 0.35% PA...but I think this doesn't apply to shares and ETF's.
I'm thinking a mix of funds and ETF's might keep the costs down ??

grey_gym_sock

well, if you changed the plan to buying a few ETFs, instead of buying a fund, then the list of possible platforms who would charge a low fixed or capped fee for that would be longer. for a start, it would include hargreaves lansdown and td direct.

however, i'm not aware of any single ETF which gives you a ready-made portfolio, similar to vanguard lifestrategy 80% ... you could certainly use a combination of about 3 ETFs (in suitable proportions) to give you something similar to VLS80. that's do-able, but then 1 of the aims was to keep it simple ...

Glen_Clark

ETFs are invariably the cheapest funds to trade and hold, and can only be held through a platform.
The platform will charge you to convert your foreign currency dividends to Sterling, and charge you again to reinvest the dividends. These charges can be avoided by using an accumulation ETF.

Perdu

Thanks very much to all for the further suggestions of platforms, I'll get on the phone again first thing Monday!

grey_gym_sock wrote: »

however, i'm not aware of any single ETF which gives you a ready-made portfolio, similar to vanguard lifestrategy 80% ... you could certainly use a combination of about 3 ETFs (in suitable proportions) to give you something similar to VLS80. that's do-able, but then 1 of the aims was to keep it simple ...

Very much so, for the not uncompelling reason that I'm not entirely sure exactly what an ETF is.. and how it differs from other fund types etc etc..

I am learning, however, that I do not know anything like enough at this stage to make proper long-term choices. I am hoping that just chucking the lot into a passive tracker will keep me in the market while I go and learn a whole lot more.

coyrls wrote: »

Just a warning that Trustnet Direct's "transactional platform" is Interactive Investor and you should apply any reservations that you have about Interactive Investor to Trustnet Direct. In my experience Trustnet Direct has the same "issues" as Interactive Investor.

Oh.. I hadn't known this, thanks. To be honest I haven't read all the III thread - just thought it wise to steer clear. I'll have a look to try to understand the implications of apparently poor service on my limited needs..

Not that simple, this money lark is it?

dunstonh

Very much so, for the not uncompelling reason that I'm not entirely sure exactly what an ETF is.. and how it differs from other fund types etc etc..

A good reason not to use them. ETFs are different to investment funds and can carry greater risks for comparable areas of investment.

I am hoping that just chucking the lot into a passive tracker will keep me in the market while I go and learn a whole lot more.

100% investing in one area is bad investing.

Glen_Clark

Here is a explanation of ETF: https://en.wikipedia.org/wiki/Exchange-traded_fund

It has transpired that Warren Buffet has advised his wife to invest 90% of her inheritance in a S&P 500 fund, with the remaining 10% in short dated corporate bonds. Not the sort of advice you can expect from a Professional Financial Adviser who would be out of a job if all his clients did that!
Buffet mentioned the Vanguard fund, but thats not an accumulation ETF, so pays the dividends out in dollars presumably what his wife would want. I like Vanguard, but an Accumulation fund is better for me, so I use this one, charges the same 0.07% as Vanguard, run by the Worlds biggest fund manager Black Rock.
http://funds.ft.com/uk/Tearsheet/Summary?s=CSP1:LSE:GBX

But the S&P 500 (above) has risen substantially since Buffet's recommendation to his wife. So you may prefer to use the equivalent worldwide ETF for more diversity, although it costs a little more;
http://funds.ft.com/uk/Tearsheet/Summary?s=SWDA:LSE:GBX
Like Vanguard, these are both 5 star rated funds as you can see in the FT link.

TheTracker

Perdu wrote: »

I am hoping that just chucking the lot into a passive tracker will keep me in the market while I go and learn a lot more

dunstonh wrote: »

100% investing in one area is bad investing.

He never said it was one area. A world equity tracker such as VWRL is about as diversified as you can get in equity markets.