Hargreaves Lansdown Charges

b80_2

Hi All,

Not sure if I'm interpreting this correctly but I'm reading that there's a max platform charge limit of £45 per year. Does this mean whether I had 10k invested or 50k I wouldn't incur annual platform charges of more than £45 - or am I missing something?

If so, what other charges would I incur by using HL (not including the Vanguard fund charge) if I was to make 1 max deposit into an isa each year -I can see there are no inactivity fees.

Thanks!

Chino

b80 wrote: »

but I'm reading that there's a max platform charge limit of £45 per year. Does this mean whether I had 10k invested or 50k I wouldn't incur annual platform charges of more than £45 - or am I missing something?

As you appear to be referring to holding an ISA with HL ("if I was to make 1 max deposit into an isa each year"), the £45 cap only applies to holdings of shares, investment trusts, ETFs, gilts and bonds; there is no cap on the annual management charge for holding funds in an HL ISA:
http://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

I think you should either telephone or send them a message to better understand HL's charges as they might apply to you:
http://www.hl.co.uk/contact-us?location=/investment-services/isa/savings-interest-rates-and-charges

b80_2

ah thanks, thought I must be overlooking something!

A_T

HL is a great platform if you make frequent investments into funds and rebalance regularly. If you're just going to make one deposit into an ISA per year then maybe there are better options.

http://monevator.com/compare-uk-cheapest-online-brokers/

Just out of interest while you're waiting to make one annual deposit into the ISA what is that capital doing for you?

b80_2

At the moment my capital is just sat there in low interest accounts.

I've spend the last few months reading up on stocks and shares, so this will be my first forray into investing.

barginfinder

start with funds, unless you have a lot of capital, you can't build a diverse share portfolio without incurring high dealing charges - funds give you the balance at a much lower cost, many people are going for cheap tracker funds these days

b80_2

yeah I'm planning on buying into the Vanguard FTSE Global All Cap fund which seems to roughly reflect the global market. I was going to go with LS100, but I'm not certain on the UK tilt they seem to have.

A_T

b80 wrote: »

At the moment my capital is just sat there in low interest accounts.

I've spend the last few months reading up on stocks and shares, so this will be my first forray into investing.

While IRs are so low I'm not sure what the point is of leaving capital in bank accounts, then invest with a £20K lump sum into a fixed fee ISA in one go to avoid platform charges.

Vanguard's charges are 0.15% capped at £345 per annum. Investing £1666 per month it would be a well below average year on the stockmarkets to get a return less than £345 over 12 months.

b80_2

I can't use vanguard as my employer has a list of approved brokers - I work for an investment bank.

I will probably use Barclays as their new platform is .20%.

My issue is confidence with stocks and shares as I've always been told how risky they are. Reading monevator and this forum has helped sway me, but instil don't fancy dropping 100k into them overnight, so I thought I'd start off with maxingv the isa and will go from there.

Doc_N

Chino wrote: »

As you appear to be referring to holding an ISA with HL ("if I was to make 1 max deposit into an isa each year"), the £45 cap only applies to holdings of shares, investment trusts, ETFs, gilts and bonds; there is no cap on the annual management charge for holding funds in an HL ISA:
http://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

I think you should either telephone or send them a message to better understand HL's charges as they might apply to you:
http://www.hl.co.uk/contact-us?location=/investment-services/isa/savings-interest-rates-and-charges

But for anyone transferring an existing ISA already invested in an investment trust to HL, there's a maximum £45 annual charge?

That sounds a remarkable low fee - is there a catch?

ColdIron

That's the deal, no catch. £11.95 per trade or £1.50 with the monthly savings plan and a maximum annual fee of £45 for an ISA. It's an even better deal unwrapped where there is no annual fee at all making it essentially free aside from the transaction fees. SIPPs are capped at £200. Read the charges link in Chino's post above and there are exit fees

None of the above applies to funds, unit trusts, OEICs etc which have a tiered charging structure starting at 0.45%. Company shares, investment trusts, ETFs, gilts and bonds only

Edit: The monthly savings won't apply to an ISA transfer as it's linked to the Direct Debit so new money only