Online Platform to Invest in Stocks

bushido1

JohnRo wrote: »

Of course but for someone who does want to trade 12 times a year CSD are cheaper than TD and the customer service and account portal and associated features are vastly superior imho (and experience with both).

* To the OP this just highlights how you need to be clear about your intended investment, initially and in future, and also what you want from the chosen platform.

Thanks for the advice guys!

For my online research I don't see people having problems with neither HL or CDS but yes with others like iii. With this in mind I think I will go with CDS because of the price being almost half of HL.

One last question tho; can I buy VWRL and VOGV from CDS?
I am sure that I can from HL but I wasn't able to find this info for CDS.

JohnRo

I am sure that I can from HL but I wasn't able to find this info for CDS.

Why on Earth not?

VWRL

VGOV

C_Mababejive

Another vote for TDinvesting.. You can operate a stocks and shares ISA and pay no admin fee. Halifax also offers a very fairly priced S & S ISA.

HL charge max £45 pa for S&S ISA and if you hold funds in the same ISA you will also have to pay the AMC and of course the fund managers fee.

I think i am right in saying that if you hold shares and funds in the HL ISA, then the AMC only applies to the non shares element and not the value of the whole fund?

bowlhead99

bushido1 wrote: »

With this in mind I think I will go with CDS because of the price being almost half of HL.

The headline 'price' at CSD of 0.25% is almost half of HL's 0.45%, *but* HL only charge it on the first £10,000 so your minimum cost is £45 a year, while CSD charge it on the first £60,000 so your minimum cost is £150 a year.

So, CSD on the face of it are not 'almost half' of the price at all, for holding your £100,000 of ETFs. For simply holding and not buying or selling, they are almost three times the price.

However, as JohnRo says if you do 6 trades (at £10 each) in every 6 month period they will waive the £150 charge. HL do not have this and the trading fees (at £12 each) will stack on top of the £45 charge.

Therefore if you do the maths, HL is cheaper up to about 6 trades a year and CSD cheaper thereafter. CSD is never going to be as low as half the price though - at 12 trades a year it's over 60% of the HL cost and at 100 trades a year it's over 80% of the price.

The savings can be significant if you shop around, you just need to know exactly what it is that you are shopping for.

C_Mababejive wrote: »

I think i am right in saying that if you hold shares and funds in the HL ISA, then the AMC only applies to the non shares element and not the value of the whole fund?

No, you pay their management charges on all of the stuff you hold, split into separate buckets. At some level of holdings, the charge on each bucket is capped.

For an ISA, you pay 0.45% on the first £10,000 of exchange traded stuff (shares, bonds, gilts, ETFs, ITs).

You ALSO SEPARATELY pay 0.45% on the first £250,000 of funds held through their platform (OEICs, UTs) and 0.25% on the next £750,000 of funds and 0.1% on the next £1million.

C_Mababejive

bowlhead99 wrote: »

No, you pay their management charges on all of the stuff you hold, split into separate buckets. At some level of holdings, the charge on each bucket is capped.

For an ISA, you pay 0.45% on the first £10,000 of exchange traded stuff (shares, bonds, gilts, ETFs, ITs).

You ALSO SEPARATELY pay 0.45% on the first £250,000 of funds held through their platform (OEICs, UTs) and 0.25% on the next £750,000 of funds and 0.1% on the next £1million.

Hang on,,so if i had a vantage ISA which contained 10k worth of shares in Amalgamated Amalgamations AND i had 10k in the Throgmorton latest fad fund I would pay AMC of 0.45% on a total of 20k(not 10k) plus £45 (max capped) on the shares element? Sounds like two bites of the same cherry to me...

bowlhead99

C_Mababejive wrote: »

Hang on,,so if i had a vantage ISA which contained 10k worth of shares in Amalgamated Amalgamations AND i had 10k in the Throgmorton latest fad fund I would pay AMC of 0.45% on a total of 20k(not 10k) plus £45 (max capped) on the shares element? Sounds like two bites of the same cherry to me...

No you would pay a management charge of 0.45% on the £10k AA investment which sits in their nominee account and for which they are providing you stockbroking services. If the value of AA increases, don't worry, your annual management fee for the *exchange traded investments* (shares, bonds, gilts, ETFs, ITs) is capped at the £45.

You would also pay a management charge of 0.45% on the £10k throgmorton investment which you hold through their "funds platform" and for which they are providing you fund platform services. If the value of this holding increases beyond £10k you will pay more fees because your annual management fee for the *fund investments* (oeics, UTs) is not capped until you have £2m on that fund platform.

The sum of the £45 on £10000 for stockbroking services plus the separate £45 on £10000 for fund platform services is £90. So £90 is your annual fee in absence of trading and there is no double dipping.

Gurberly

Might be worth a read....


http://www.moneyobserver.com/our-analysis/find-best-online-broker-your-portfolio-size


Jo

bushido1

bowlhead99 wrote: »

The headline 'price' at CSD of 0.25% is almost half of HL's 0.45%, *but* HL only charge it on the first £10,000 so your minimum cost is £45 a year, while CSD charge it on the first £60,000 so your minimum cost is £150 a year.

So, CSD on the face of it are not 'almost half' of the price at all, for holding your £100,000 of ETFs. For simply holding and not buying or selling, they are almost three times the price.

However, as JohnRo says if you do 6 trades (at £10 each) in every 6 month period they will waive the £150 charge. HL do not have this and the trading fees (at £12 each) will stack on top of the £45 charge.

Therefore if you do the maths, HL is cheaper up to about 6 trades a year and CSD cheaper thereafter. CSD is never going to be as low as half the price though - at 12 trades a year it's over 60% of the HL cost and at 100 trades a year it's over 80% of the price.

The savings can be significant if you shop around, you just need to know exactly what it is that you are shopping for.


No, you pay their management charges on all of the stuff you hold, split into separate buckets. At some level of holdings, the charge on each bucket is capped.

For an ISA, you pay 0.45% on the first £10,000 of exchange traded stuff (shares, bonds, gilts, ETFs, ITs).

You ALSO SEPARATELY pay 0.45% on the first £250,000 of funds held through their platform (OEICs, UTs) and 0.25% on the next £750,000 of funds and 0.1% on the next £1million.

Thanks a lot for the response bowlhead!!

Let me clarify it. Imagine in my situation (which I explained above), but I will explain again:

If I own 100k GBPs ETFs (such as VWRL, IWRD) but I have them outside the ISA (since this is my first year using the ISA and I will spend it with the VGOV fund).
And I buy and hold and make very few transfers a year (maybe 3 deposits, and bed-breakfast from VWRL to IWRD once).

1/ In this case, will then HL be cheaper than CDS?

2/ In HL. Don't you have to pay annually 0.45% of 100k GBPs for holding 100k GBPs worth of ETFs (VWRL, IWRD)? What about in CDS?
Is it free to hold ETFs in HL?

3/ When does the 0.45% yearly fee apply then?

darkidoe

bushido1 wrote: »

Thanks a lot for the response bowlhead!!

Let me clarify it. Imagine in my situation (which I explained above), but I will explain again:

If I own 100k GBPs ETFs (such as VWRL, IWRD) but I have them outside the ISA (since this is my first year using the ISA and I will spend it with the VGOV fund).
And I buy and hold and make very few transfers a year (maybe 3 deposits, and bed-breakfast from VWRL to IWRD once).

1/ In this case, will then HL be cheaper than CDS?

2/ In HL. Don't you have to pay annually 0.45% of 100k GBPs for holding 100k GBPs worth of ETFs (VWRL, IWRD)? What about in CDS?
Is it free to hold ETFs in HL?

3/ When does the 0.45% yearly fee apply then?

Erm did you not read the above suggests that if you are buying etfs at your proposed sum, TD Direct Investing would be another one to consider.

Someone suggested this already but you clearly haven't check this out: http://monevator.com/compare-uk-cheapest-online-brokers/

bushido1

darkidoe wrote: »

Erm did you not read the above suggests that if you are buying etfs at your proposed sum, TD Direct Investing would be another one to consider.

Someone suggested this already but you clearly haven't check this out

I am not considering TD Direct because I don't like the reviews of different people about that platform.

I did check that link that you posted plus another one that it was posted by Guberly.

But I still don't understand how it works, and I still don't know how much I will be paying by holding 100kGBPs worth of ETFs.

First JonhRo said:
"CSD let you trade funds for free, however if your average investment is £104-106K at 0.25% p.a will incur platform costs of £260-265 in year one.

HL let you trade funds for free, their costs on £104-106K at 0.45% p.a will incur platform costs of £468-477 in year one."
This would mean that HL costs almost as double.

But then Bowlhead said:
"The headline 'price' at CSD of 0.25% is almost half of HL's 0.45%, *but* HL only charge it on the first £10,000 so your minimum cost is £45 a year, while CSD charge it on the first £60,000 so your minimum cost is £150 a year.

So, CSD on the face of it are not 'almost half' of the price at all, for holding your £100,000 of ETFs. For simply holding and not buying or selling, they are almost three times the price."

And now I am confused. Thats why I put an example and I am waiting for an answer on it.

Sorry for not understanding something so basic, but I will appreciate more if you help me clear my problem instead of pointing to the fact that I don't know it.

I will appreciate if someone with the knowledge could answer the questions I ask in the post before, thanks!!