We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

HL share dealing account "no charge"

Looking at their website it costs £11.95 to make a deal but then no annual charge (unlike the .45% for ISA and SIPP). What's the catch?
«1

Comments

  • ColdIron
    ColdIron Posts: 9,536 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    None, that's the deal for the Fund and Share account, it's quite competitive. The ISA and SIPP charges are capped at £45 and £200
  • EdSwippet
    EdSwippet Posts: 1,608 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper
    A_T wrote: »
    What's the catch?
    Compare the £11.95 to £5 in iWeb. No annual charge for a vanilla dealing account either, although there is a £25 iWeb one-off startup fee, making it a net saving after four trades.
  • A_T
    A_T Posts: 969 Forumite
    Part of the Furniture 500 Posts Name Dropper
    ColdIron wrote: »
    None, that's the deal for the Fund and Share account, it's quite competitive. The ISA and SIPP charges are capped at £45 and £200

    Thanks.

    I was wondering if I invest 10k in just one ETF, I'm thinking of HSBC ETFs Plc MSCI World ETF GBP (HMWO) which has an annual fee of .15%, will I incur any foreign exchange charges from HL. Or will I just pay the £11.95 deal charge then no further charges from HL just the .15% fund charge?
  • naedanger
    naedanger Posts: 3,103 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Combo Breaker
    A_T wrote: »
    Looking at their website it costs £11.95 to make a deal but then no annual charge (unlike the .45% for ISA and SIPP). What's the catch?

    If you buy unit trusts or OEICs there is an ongoing charge on those funds of up to 0.45% p.a.

    http://www.hl.co.uk/investment-services/fund-and-share-account/charges-and-interest-rates

    There are also termination charges which can be significant if you have a lot of separate holdings. And in the past HL have introduced new charges and increased existing charges and levied exit fees on those trying to leave solely to avoid the new/increased charges.
  • ColdIron
    ColdIron Posts: 9,536 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    A_T wrote: »
    will I incur any foreign exchange charges from HL.
    What sort of 'foreign exchange charges' are you thinking of? It looks like a standard ETF to me
    Or will I just pay the £11.95 deal charge then no further charges from HL just the .15% fund charge?
    Yes I should think so
  • System
    System Posts: 178,168 Community Admin
    10,000 Posts Photogenic Name Dropper
    A_T wrote: »
    Thanks.

    I was wondering if I invest 10k in just one ETF, I'm thinking of HSBC ETFs Plc MSCI World ETF GBP (HMWO) which has an annual fee of .15%, will I incur any foreign exchange charges from HL. Or will I just pay the £11.95 deal charge then no further charges from HL just the .15% fund charge?
    For HMWO, I think that the dividends will be paid in US dollars and HL will probably charge a FX fee of 1.5%.
    The exit fees at HL would put me off using them (an account closure fee of £25+VAT and £25 per holding to transfer shares to another broker).
  • ColdIron wrote: »
    The ISA and SIPP charges are capped at £45 and £200

    Is that correct? I am being charged the standard 0.45% for the ISA and SIPP.
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    A_T wrote: »
    Looking at their website it costs £11.95 to make a deal but then no annual charge (unlike the .45% for ISA and SIPP). What's the catch?
    I use x-o at £5.95 and no annual charge for shares and ETFs.
    I suppose the 'catch' is you get no interest on cash, people tend to trade more than they think they will, and buy other things the platform makes a profit on. Same as Banks offer free current acounts in the hope of selling you something they make a profit on.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • jimjames
    jimjames Posts: 17,944 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    ColdIron wrote: »
    None, that's the deal for the Fund and Share account, it's quite competitive. The ISA and SIPP charges are capped at £45 and £200

    That's only true for shares though isn't it? I thought funds were uncapped?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • george4064
    george4064 Posts: 2,875 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    jimjames wrote: »
    That's only true for shares though isn't it? I thought funds were uncapped?

    Correct, the caps only apply to shares, ITs and ETFs. For all funds/UTs there is no cap on the platform fee.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

    Save £12k in 2021 - #027 £15,268 (76%)
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 346.5K Banking & Borrowing
  • 251.3K Reduce Debt & Boost Income
  • 451.4K Spending & Discounts
  • 238.7K Work, Benefits & Business
  • 614.1K Mortgages, Homes & Bills
  • 174.7K Life & Family
  • 251.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.