New AJ Bell Youinvest charges

EdSwippet

coyrls wrote: »

... Given the drastic change in costs for me (more than a 5x increase), I hope that AJ Bell will waive their transfer charges.

AJ Bell refused to waive transfer charges the last time they implemented a large cost increase. Anyone transferring away had to pay full transfer out charges. More in this thread from a couple of years ago.

JohnRo

hoc wrote: »

If I had a big fund based portfolio, I would probably move to a platform that gets preferential (reduced) management fee funds like HL.

They'd have to be extremely preferential, to the point of being none existent in the case of some low OCF funds. Index trackers being the obvious example.

HL's fund based platform costs are nearly double those of many of their percentage fee rivals.

Chickereeeee

Argg, I have JUST (this month) moved to Youinvest specifically to get the cap on charges (previously with Fidelity).

C

JohnRo

Investing via collective ETFs and ITs is looking increasingly attractive. I personally find it irritating that platforms are allowed and feel entitled to tax people's wealth.
What possible justification is there for charging one person mere pennies a year and someone else sitting on exactly the same developed world index tracker, as an example, what could amount to £1,875 a year.

bigadaj

JohnRo wrote: »

Investing via collective ETFs and ITs is looking increasingly attractive. I personally find it irritating that platforms are allowed and feel entitled to tax people's wealth.
What possible justification is there for charging one person mere pennies a year and someone else sitting on exactly the same developed world index tracker, as an example, what could amount to £1,875 a year.

Well I suppose the justification is that they need to generate enough money to run the platform and make soem profit and how they do that varies from one to the next.

There is a cost in actually holding, running and reporting an account, and dealing, so,the most transparent costs for money is a base cost and a hopefully small dealing fee. Percentage base fees obviously work for those with small holdings, but in those cases the investors with larger holdings are subsidising those with lesser amounts, so a sort of socialised capitalism possibly.

To be fair there's a range of models available now for people to choose from, it's generally not too difficult to switch and transferring fees are generally not excessive if the investor does a little work, like transferring to cash or a single fund, though it's an area that the regulator needs to keep an eye on.

It seems a fairly competitive market and will hopefully remain so.

EdGasket

hoc wrote: »

More details here, including comparison of before/after as the wording on some of the changes is a little cheeky: https://www.youinvest.co.uk/charges-and-rates

But if you scroll down that page to
SIPP charges

"View the changes and charges for Sipps", it still looks like the old rates and charges.


The comparison thing higher up the page does seem to work though except it is misleading because TD Direct charge nothing for Dealing and ISA accounts that are linked. I know because I have both.

Chickereeeee

EdGasket wrote: »

But if you scroll down that page to
SIPP charges

"View the changes and charges for Sipps", it still looks like the old rates and charges.

There is another (faint) tab on that page showing the new charges,

C

EdSwippet

EdGasket wrote: »

The comparison thing higher up the page does seem to work though except it is misleading ...

The selection of comparison brokers ("our four largest competitors") is clearly carefully cherry picked to flatter Youinvest into showing as the cheapest under practically every circumstance allowed for by the extremely limited calculator. A fairer comparison would include

• iWeb
• Halifax sharedealing
• Alliance Trust
• Interactive Investor
• Lloyds sharedealing

and similar. All these will be cheaper than Youinvest for quite a spectrum of investors.

The announcement itself also reeks of marketing slime. Youinvest wants us to believe

• that a tiered 0.25%, 0.1%, and 0.05% but uncapped charge is somehow "easier to understand" than 0.2% capped at £200/year
• that introducing differential trading charges for funds versus shares is "more consistent in approach"
• that charging a FTSE tracker fund investor hundreds of times more than an FTSE tracker ETF investor for holding the precise same underlying assets is "a fair price irrespective of the account or your investment style."

Can you tell I'm unconvinced?

banjodog

Trying to figure out how much more I will be charged for a SIPP with £200,000 in stocks and shares funds. Looks like I will now be paying £500, compared to (I think) £300?. A huge percentage increase

BLB53

Looks like I will now be paying £500, compared to (I think) £300?

Look at possible swap to ETFs? Charges capped at £100 p.a.