HSBC Sharedealing

CaptainWales

I am interested in buyer shares myself but have never done this before - would hsbc sharedealing be a good place to start? Their charges seem reasonable.

Lakeuk

There are cheaper brokers out there -

Broker comparison as at Dec 2015

Thrugelmir

Personally I use x-o at £5.95p a trade. No frills service and website. Excellent customer support.

Pincher

I am using InvestDirect, not the Plus version.

It's antiquated and basic, and I don't see how they can be making money. Started charging annual fee £42 (= £10.50 x 4) this year, was free before, so probably struggling.

Amusingly, I am holding a large tranche of HSBC shares in InvestDirect. Other than the initial £10.50 trading fee, and the £1 PTM Levy, there are no custodian charges.

Assuming I have 10,000 shares of HSBA, which pays 41p a share, which is £4,100 a year. 10,000 shares at £6.20 is £62,000, so it's like depositing £62,000 and getting interest at 6.6%. Even with the £42 annual fee, it's still 6.5%. I actually bought the shares at £4.25, so the £4,100 dividend is more like 9.5% interest.

The upshot is, I no longer need to keep £50k with HSBC to qualify for the Premier account.

So, on an ongoing basis, if I don't sell the shares, they will take £42 annual fee, but I will get the Premier account for free, and they will PAY ME 9.5% dividend, on which I will pay 7.5% dividend tax, INSTEAD of 20% income tax (for interest).

I borrowed £3,000 on a long term 0% BT (credit card) deal from TescoBank, which I put into the TescoBank 3% interest current account. This HSBC set up is on a whole other level, though strictly speaking it's not stoozing.

So, it's not the best dealing account you can have, but if you want irony and comedy, it's right up my sick sense of humour. Milking HSBC using their own dealing account, who's the cash cow now! :rotfl:

Glen_Clark

Pincher wrote: »

who's the cash cow now! :rotfl:

That depends how much longer HSBC can maintain its dividend.

Glen_Clark

Thrugelmir wrote: »

Personally I use x-o at £5.95p a trade. No frills service and website. Excellent customer support.

Another vote for x-o