TD Direct sold to Interactive Investor

cloud_dog

TCA wrote: »

Just spotted the following on TD's website regarding transferring out:

"If you’re thinking of leaving us because of the future change of ownership to Interactive Investor we’d like to reassure you that there will be no changes to your TD service in the near term. TD and Interactive Investor are working closely together to combine the best of the services they each offer today and are committed to continuing to provide high quality, great value investment services.

If there are any changes to your current TD services in the future then we will always give you notice of those changes and help you to understand what any changes mean for you. If those changes are not appropriate for your investing needs then you will be able to close your TDDI account or transfer your portfolio without penalty at that time."

Having read that, I'm still tempted to jump ship now given it's pretty clear that fixed fees are coming.

Having read that I (OH) will be happy to stay for the time being and see how the dust settles.

But if they do change the charge structure the the II model then I (OH) will be moving the accounts defiantly (just for xylophone)

JohnRo

TCA wrote:

I'm still tempted to jump ship now given it's pretty clear that fixed fees are coming.

I think it's perhaps prudent to wait and see what is actually proposed. I agree the fixed fee structure is coming to TD.

A move to IG is on the cards for me given their current incentive but if, somehow, there is a charges fudge (HL offering reduced rates to some leaving customers for example) such that any existing TD arrangements are preserved, then I'll consider staying, subject to what other changes the new charging structure delivers.

TCA

JohnRo wrote: »

A move to IG is on the cards for me given their current incentive but if, somehow, there is a charges fudge (HL offering reduced rates to some leaving customers for example) such that any existing TD arrangements are preserved, then I'll consider staying, subject to what other changes the new charging structure delivers.

Like you I'm kind of sick of the switching. Although also not prudent, I'm constantly tempted to say sod it, and get all my holdings on one platform.

Dodge1664

has anyone looked into the impact of the takeover on the compensation arrangements in the event of Interactive Investor going bankrupt? There's a £50,000 limit per institution with the FSCS. At the moment, TD direct still seems to be registered separately to II. So it seems that someone with an account at both brokers would get 50,000 cover for each account. I wonder how much longer this will be true?

economic

I have a significant amount with TD only (well over the various protections). do you think its safe? its all invested and not in cash.


or am I being stupid and should split to at least two brokers?

Nerdlinger

economic, shares are held in nominee accounts which make them legally safe from being considered seizable assets of the broker. So then it's just in danger from fraudulent brokers. There is a good article about nominee accounts on the International Investor website.

seacaitch

Nerdlinger wrote: »

So then it's just in danger from fraudulent brokers.

Incompetent brokers with poor/broken systems also, who manage to co-mingle their own and customers' assets, for example, breaching custody and client money rules. It's possible to imagine how, in this way, a poorly run firm might end up burning through customer capital in addition to its own. No fraud necessary.

And, it's possible to imagine how such a situation might lead on to fraud, if for example the problem firm, on discovering its errors, attempted to trade out of the situation rather than fessing up, and in doing so made the problem worse, compounding customer losses.

These are likely very minor (low probability) risks for investors, but ones which if ever manifested could be ruinous. For those concerned, broker diversification is a prudent option. There's no "right" course of action, only that which lets you sleep easy, and everyone is different.

NB this comment applies to all brokers.

economic

seacaitch wrote: »

Incompetent brokers with poor/broken systems also, who manage to co-mingle their own and customers' assets, for example, breaching custody and client money rules. It's possible to imagine how, in this way, a poorly run firm might end up burning through customer capital in addition to its own. No fraud necessary.

And, it's possible to imagine how such a situation might lead on to fraud, if for example the problem firm, on discovering its errors, attempted to trade out of the situation rather than fessing up, and in doing so made the problem worse, compounding customer losses.

These are likely very minor (low probability) risks for investors, but ones which if ever manifested could be ruinous. For those concerned, broker diversification is a prudent option. There's no "right" course of action, only that which lets you sleep easy, and everyone is different.

NB this comment applies to all brokers.

arent there regular checks/audits so tht this is not possible? specially if the broker is FCA regulated?

seacaitch

You buy insurance for things that aren't meant to happen but sometimes happen nonetheless.

tusk

Reading the TD website it now seems certain they are moving to II's pricing structure, I've sent an e-mail to both platforms but just received waffle in reply so, I holding only ETF's am on my bike. I've been looking at A.J.BELL, SELFTRADE, X-O and SVS, with X-O and SVS coming out the cheapest, followed by SELFTRADE and A.J.BELL. Has anyone had any experience of these brokers.