HL share dealing account "no charge"

A_T

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?

ColdIron

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

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

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

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

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

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).

nxdmsandkaskdjaqd

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

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.

jimjames

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?

george4064

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.