Halifax ISA Investor Fund Charge

VladDracula

Hi Everyone,

I am currently looking at investing my entire £15,240 allowance in my Halifax ISA Investor but was told the fund charge for doing so would be over £500. This works out at over 3% of my new investment.

Now it is over a decade since i last invested a lump sum amount of this size in the account but i don't remember paying such a large fund charge, i don't much remember paying one at all back then.

Is this amount the norm for a stocks and shares investment and would it be similar whoever i invested with or are there more frugal/efficient alternatives?

Thanks in advance.

Linton

Sounds a massive charge - typical charges made by online broker are £10 or less. What is the fund? Perhaps it has a bid/offer spread which is something different.

dunstonh

Now it is over a decade since i last invested a lump sum amount of this size in the account but i don't remember paying such a large fund charge, i don't much remember paying one at all back then.

Its not a fund charge. Its an adviser charge. Commissions were banned at the end of 2012 and its all fee based now. This has resulted in the fund charges going down and the adviser charges mostly making up the difference. Although I believe Halifax initial commission was about 5% back then. So, you paid more originally. You just didnt see it as easily. Plus, your annual charges would have been higher.

The amount seems reasonable for a transactional relationship. Its a lot for a servicing relationship but you wont get one of those with a bank.

VladDracula

Is there any way to avoid these adviser charges when investing in an ISA Investor? I don't really need or want any advice...i just want to invest more money in funds i am already invested in.

If i open a self select stock and shares ISA would i avoid these fees?

Are there other banks offering lower adviser charges for the same type of investment?

I have tried looking online but there doesn't seem to be much information/comparisons on such things.

grey_gym_sock

try http://monevator.com/compare-uk-cheapest-online-brokers/

it would make sense to consider whether it's worth moving your existing S&S ISA to somewhere cheaper, while you're looking at this.

colsten

I have a Halifax ISA and I don't pay any advisor charges. All it costs me is £12.50 a year, and the fund charges that you'd pay everywhere else as well.

There is plenty of information about platforms, e.g.
http://monevator.com/compare-uk-cheapest-online-brokers/
http://www.comparefundplatforms.com/

dunstonh

Is there any way to avoid these adviser charges when investing in an ISA Investor?

You avoid adviser charges by using a DIY distribution channel. Not by using an adviser channel.

I don't really need or want any advice

You do if you plan to invest in Halifax funds!

If i open a self select stock and shares ISA would i avoid these fees?

Yes. But there will of course be other fees.

Are there other banks offering lower adviser charges for the same type of investment?

You should never get advice from a bank. They have the worst reputation going (for good reason) and most are tied agents of their own company or a company they own or have a commercial relationship with.

The two options to consider are to use an IFA or to DIY. All other options should be eliminated.

jimjames

VladDracula wrote: »

Is there any way to avoid these adviser charges when investing in an ISA Investor? I don't really need or want any advice...i just want to invest more money in funds i am already invested in.

If i open a self select stock and shares ISA would i avoid these fees?

Are there other banks offering lower adviser charges for the same type of investment?

I have tried looking online but there doesn't seem to be much information/comparisons on such things.

iWeb charges have gone up recently to £200 but even that is cheaper than Halifax and is a one off regardless of how much you hold with them

colsten

jimjames wrote: »

iWeb charges have gone up recently to £200 but even that is cheaper than Halifax and is a one off regardless of how much you hold with them

I can have my Halifax ISA for 16 years before iWeb is cheaper. I am not buying and selling lots, though. If I were, I could have a regular investment plan that would cost me £2 per trade - which is cheaper than the iWeb £5 per trade.

Eco_Miser

jimjames wrote: »

iWeb charges have gone up recently to £200 but even that is cheaper than Halifax and is a one off regardless of how much you hold with them

Which is somewhat ironic, because Iweb is Halifax, but just a simple platform, no advice.
They also charge £5 per transaction, as well as the one off £200 joining fee.

PeacefulWaters

VladDracula wrote: »

Hi Everyone,

I am currently looking at investing my entire £15,240 allowance in my Halifax ISA Investor but was told the fund charge for doing so would be over £500. This works out at over 3% of my new investment.

Now it is over a decade since i last invested a lump sum amount of this size in the account but i don't remember paying such a large fund charge, i don't much remember paying one at all back then.

Is this amount the norm for a stocks and shares investment and would it be similar whoever i invested with or are there more frugal/efficient alternatives?

Thanks in advance.

Are you trying to top up a legacy product that they no longer sell?

STOP!

There are better options out there which will charge you less.