First Stocks & Shares ISA - No Charges ?

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Hi All,

My first step into stocks & Shares. I know nothing so intend to go with a managed stocks and Shares ISA that will allow a very small monthly payment in (around £25.00 per month to start).

I have noticed that charges can be quite high so thinking on going with Moneyfarm, but i have never heard of these or Virgin Money with one of the iSA's with virgin money - they seem to have no minimum payment in and no charges (other than an annual of 1%) - is this too good to be true ?

Anyone got any advice for starting one of these ISAs with not much to invest ? (got to start somewhere..)

Thanks in advance
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  • dunstonh
    dunstonh Posts: 116,603 Forumite
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    around £25.00 per month to start)

    That is very low and severely limits choice and to be honest, it barely worth the effort.
    hey seem to have no minimum payment in and no charges (other than an annual of 1%) - is this too good to be true ?

    1% is high for a DIY option. Although you are not going to have much choice with £25pm. You are going to be looking at lower quality/more expensive options with that amount.

    Have you considered sticking with savings and waiting until you can afford to do a bit more?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Superscrooge
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    Most monthly payment options seem to have a minimum of £50 per month.

    It might be best to save your £25 a month into a high interest account until you have accumulated enough to make a lump sum payment or start investing £50 per month
  • jimjames
    jimjames Posts: 17,669 Forumite
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    edited 17 January 2017 at 2:05PM
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    HL start from £25 per month. Not the cheapest but much cheaper than Virgin

    http://www.hl.co.uk/investment-services/isa


    As long as you have sufficient money as emergency funds then I can't see a problem with getting started at £25 as it at least gets you onto the ladder and seeing how investing works.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • countrycat
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    Thanks all, amin my 40's and having a panic that i have no pension or very good savings etc. ! Will lookat the HL one thanks.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
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    edited 17 January 2017 at 6:34PM
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    countrycat wrote: »
    Thanks all, amin my 40's and having a panic that i have no pension or very good savings etc. ! Will lookat the HL one thanks.

    you don't say your general circumstances (income, house owner, children, spouse etc)
    and one doesn't want to discourage but
    25 pm for say 20 years gives you £6,000 by your mid 60s
    which could buy you a pension of about £180 per year or about £15 per month or less than £4 per week
  • countrycat
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    Well that is slightly depressing, situation is i don't have much money, young family, mortgaged etc just thought it would be better than nothing even if it ends up being cashed in for uni funds, first car etc later down the line. Have basic savings account but thats for using as needed.
  • TheShape
    TheShape Posts: 1,781 Forumite
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    edited 21 January 2017 at 6:41PM
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    Hi countrycat,

    Don't be discouraged. If you have the ability to save anything at all that is a start. A Stocks & Shares ISA is probably not the best place to start though.

    Can you post some more details about your household income, house value, outstanding mortgage, mortage rate, type (fixed etc) and term remaining. Any other debts? How much do you have, right now, in savings and how much can you save per month?

    If you can post these details it will really help to get you pointed in the right direction.
  • dunstonh
    dunstonh Posts: 116,603 Forumite
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    countrycat wrote: »
    Well that is slightly depressing, situation is i don't have much money, young family, mortgaged etc just thought it would be better than nothing even if it ends up being cashed in for uni funds, first car etc later down the line. Have basic savings account but thats for using as needed.

    Use a regular saver bank account as an alternative for doing this. You can have multiple accounts for different things.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • jimjames
    jimjames Posts: 17,669 Forumite
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    countrycat wrote: »
    Well that is slightly depressing, situation is i don't have much money, young family, mortgaged etc just thought it would be better than nothing even if it ends up being cashed in for uni funds, first car etc later down the line. Have basic savings account but thats for using as needed.

    As above don't be discouraged. With platforms that charge a percentage there is absolutely no harm in starting with £25 per month as it won't cost you any more. It's also a good way to get started and understand how it works. Only proviso is that you already have a suitable emergency fund built up.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Pincher
    Pincher Posts: 6,552 Forumite
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    http://uk.virginmoney.com/virgin/isa/popups/ongoing-charges-figure.jsp

    The annual ongoing charge of 1%* of the value of your investment includes the costs of running the fund.

    If your fund is valued at £1,000 throughout the year, this means we deduct £10 that year. If your fund is valued at £10,000 throughout the year, we deduct £100 that year, and so on.
    Instead of being taken on a single day each year, it is spread over the year and deducted and 1/365th of the charge is deducted each day from the unit price.


    Doesn't that mean £3 on £300? Or in fact ~£1.50 because it's only £300 in the 12th month.

    Obviously not worth doing, but certainly cheap.
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