Using platforms for investments, how safe ?

Lacerta68

I have bought some ETFs via a company called TD investments international, (its their international group as I am a british immigrant living in Portugal). So now I can log in to their website and I see the money invested and its current value on a computer screen. But how safe is that money ? I know shares/investments like this can lose value of course, but should I expect some form of paper evidence that I have ETFs with the provider ?

I am a newbie investor and now feel nervous about investing more money. What should I expect ?

dunstonh

ETFs do not get FSCS protection (unlike unit trust/OEICS).

Platforms have an element of FSCS protection but its not really of value. Especially when the assets you buy have no FSCS protection.

I am a newbie investor and now feel nervous about investing more money. What should I expect ?

By using ETFs, you have gone into a more advanced investment option. They are not normally used by new investors. No harm in them if you understand the risks (for example on the different replication methods). However, they are not quite as simple to understand as UT/OEICs where most people start out.

bigadaj

Would fscs apply for an international investor on a non uk based provider?

bigfreddiel

dunstonh wrote: »

ETFs do not get FSCS protection (unlike unit trust/OEICS).

Platforms have an element of FSCS protection but its not really of value. Especially when the assets you buy have no FSCS protection.


By using ETFs, you have gone into a more advanced investment option. They are not normally used by new investors. No harm in them if you understand the risks (for example on the different replication methods). However, they are not quite as simple to understand as UT/OEICs where most people start out.

I'm not exactly sure why you say an ETF is not as simple to understand as a UT/OEIC, could you explain further please? Cheers fj

dunstonh

I'm not exactly sure why you say an ETF is not as simple to understand as a UT/OEIC, could you explain further please? Cheers fj

Then perhaps you need to research why then. You are the one that promotes DIY. So, go find out yourself.

moneyfoolish

dunstonh wrote: »

ETFs do not get FSCS protection (unlike unit trust/OEICS).

Platforms have an element of FSCS protection but its not really of value. Especially when the assets you buy have no FSCS protection.


By using ETFs, you have gone into a more advanced investment option. They are not normally used by new investors. No harm in them if you understand the risks (for example on the different replication methods). However, they are not quite as simple to understand as UT/OEICs where most people start out.

Does this mean, for example, that if Vanguard went belly up and you had a Vanguard LifeStrategy Fund you would be covered but if you held a Vanguard ETF you would lose everything?

bigfreddiel

dunstonh wrote: »

Then perhaps you need to research why then. You are the one the promotes DIY. So, go find out yourself.

Actually I do know. I just wanted to see your reasons, thanks anyway fj

AnotherJoe

TDI are a reputable broker. I have investments with them.
Paper evidence wouldnt help if they were fraudsters would it, I'm sure a fake organisation would rustle up a fake certificate for you if you asked. No doubt Bernie Madoffs clients had lots of certificates to make them feel good

Totton

You should have contract notes for the ETF's, print these off and keep as proof of purchase if you wish to have some documentary proof. The contract notes are probably in your inbox or on your account page under another tab.

Pincher

It's all done with mirrors.

You are talking about a middleman holding units administered by a fund management company, who in turn has bought some stocks and shares and bonds, which are in turn merely a promise to pay interest and capital, which is basically a post dated cheque.

Try not to think about it. :eek:

AnnMollys

I don’t have any personal experience with TD, but I would say their reputation seems alright to me, but again you need to remember that any investment comes with risk, if we understand it only then we should move forward with investment or else don’t.