Best broker for investing?

dharm999

Following on from my previous posts about VCTs, and the opinions that were offered, I have come to the conclusion that a better option at this stage would be to invest in funds/investment trusts/ETFs. I don't want to invest in individual shares.

Am looking at, as a minimum a 10 year time frame until I retire. Pensions and ISAs are maxed out for this tax year, and I have a cash buffer. Am looking to invest a lump sum, and then add more lump sums, as and when money allows. I have looked at the Monevator and Telegraph tables to compare brokers but am confused as to the best option. I don't want to invest in anything obscure but do want the option of nvestment trusts and ETFs. Not sure if I need to have the option of funds, as am looking at ITs for income in retirement, and low cost tracker ETFs, which hopefully keeps the costs down. I would be looking at putting in 20k to start with and then hopefully that amount every year after that. Any suggestions please as to the brokers I should be looking at?

Thanks

A_T

If you're going to invest the 20K all in one go then fixed fee might be an option - iWeb, Halifax, Lloyds.

As you indicate it's not in a ISA or SIPP then Hargreaves Lansdown has no custody charge for ITs and ETFs.

dharm999

A_T wrote: »

As you indicate it's not in a ISA or SIPP then Hargreaves Lansdown has no custody charge for ITs and ETFs.

Not sure what that means? They don't charge their 0.45% fee for them or there is no extra fee on top of the 0.45%?

ColdIron

HL make no charge to hold Investment Trusts or ETFs in their unwrapped Fund and Share account, the 0.45% applies to funds. There is a transaction charge and there are several platforms with similar charging structures

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

dharm999

ColdIron wrote: »

HL make no charge to hold Investment Trusts or ETFs in their unwrapped Fund and Share account, the 0.45% applies to funds. There is a transaction charge and there are several platforms with similar charging structures

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

I saw that but was confused. The Monevator comparison table suggests that HL charges for investments trusts and ETFs was n top of the 0.45%. I have a HL ISA account, so actually that may be the quickest , cheapest option as I could open a Fund and Share account without all the money laundering hoops to jump through somewhere else.

Something I forgot to add was that any income in the next 10 years would be reinvested, so costs associated with reinvestment also have to be considered.

ColdIron

The reinvestment charges aren't very significant (1%, £1 min) but do you need to look at income producing ITs now if you won't need that income for 10 years? Total return would be top of my list in your shoes

dharm999

My thought process, skewed as it may be, was that as I have 2k a year tax free dividend allowance, as well as the tax free CGT allowance, I should try to use some of it, on the basis that once it's gone it's gone and i can't carry it forward. Maybe I should look at a mix of growth and income investments. It may just be i am overthinking this and should just stick to low cost growth trackers.

Eco_Miser

dharm999 wrote: »

My thought process, skewed as it may be, was that as I have 2k a year tax free dividend allowance, as well as the tax free CGT allowance, I should try to use some of it, on the basis that once it's gone it's gone and i can't carry it forward.

Doing something to use an allowance, when doing something else would produce a higher total return, even with tax to pay, is confused thinking.

If you've got more to invest than your ISA allowance (which is also use it or lose it, but the benefits last indefinitely), then certainly make use of the dividend allowance.

By the end of this year I will have bed and ISA'd the last of my unwrapped investments, and I'll never make use of that £2k allowance again.

ColdIron

dharm999 wrote: »

My thought process, skewed as it may be, was that as I have 2k a year tax free dividend allowance, as well as the tax free CGT allowance, I should try to use some of it, on the basis that once it's gone it's gone and i can't carry it forward. Maybe I should look at a mix of growth and income investments. It may just be i am overthinking this and should just stick to low cost growth trackers.

I see your rationale but it will only save £150 pa at most, your investment choices are more important. No reason to write off ITs in favour of ETFs on that basis alone, both will make use of the allowance anyway. I was just questioning the income focus

Glen_Clark

Have you seen the best buy page of this website - link

dharm999

Eco_Miser wrote: »

Doing something to use an allowance, when doing something else would produce a higher total return, even with tax to pay, is confused thinking.

If you've got more to invest than your ISA allowance (which is also use it or lose it, but the benefits last indefinitely), then certainly make use of the dividend allowance.

By the end of this year I will have bed and ISA'd the last of my unwrapped investments, and I'll never make use of that £2k allowance again.

ISAs are maxed out for this tax year, so looking for a home for the excess savings. I agree that my at the moment my thinking is muddled, and am trying to get it clearer to allow me to make a decision