Have IWeb suddenly become more expensive than even HL for Funds?

DennisTenus

Hi all,


Just came across this page http://www.iweb-sharedealing.co.uk/Landing-Pages/coming-soon.asp and in particular the Costs and Charges PDF there. This has changed because luckily I have previous versions saved. Under Funds there is now a "typical transaction cost" of 0.5% of your investment!!! There is also an example breakdown on page 3. This means that as HL charge 0.45% and no dealing fees, that IWeb have shot to the lead of highest charges because there is the £5 dealing charge each time!

Or am I mistaken? I really hope I am.


Doesn't say when this is in effect from but the latest PDF has 1217 in very small writing at the end and previous PDF was 0817.

dunstonh

Under Funds there is now a "typical transaction cost" of 0.5% of your investment!!

Typical is used when talking generically. It does not mean actual charges. They have to cater for the whole range of investments they offer. You need to focus on actual charges.

DennisTenus

dunstonh wrote: »

Typical is used when talking generically. It does not mean actual charges. They have to cater for the whole range of investments they offer. You need to focus on actual charges.

Yes but it is confusing/concerning. It's also shown in the breakdown as "transaction costs" not mentioning typical there. Are they just covering themselves here for funds that do charge entry fees etc?

Alexland

I don't see what you are suggesting has changed? iWeb charge trading fees for funds which can on low value transactions or frequent switchers end up costing more than a percentage based platform charge. The iWeb fee structure is best for buy and hold investors with larger amounts.

DennisTenus

Alexland wrote: »

I don't see what you are suggesting has changed? iWeb charge trading fees for funds which can on low value transactions or frequent switchers end up costing more than a percentage based platform charge. The iWeb fee structure is best for buy and hold investors with larger amounts.

I'm just talking about this 0.5% fee that wasn't on the previous costs and charges documentation. That's why I'm worried.


I realise there is the £5 one off charge for buying/selling funds or shares etc

ivormonee

Have IWeb suddenly become more expensive than even HL for Funds?

Doubt it! HL are more expensive than most apart from BestInvest on non-fund holdings.

talexuser

You are mistaken, the 0.5% is a possible spread for fund changes for the funds themselves, not a charge by iWeb. A possible fund change at HL might have the same spread but with the 0.45% HL charges per year on top as opposed to the iWeb zero.

IanManc

DennisTenus wrote: »

Hi all,


Just came across this page http://www.iweb-sharedealing.co.uk/Landing-Pages/coming-soon.asp and in particular the Costs and Charges PDF there. This has changed because luckily I have previous versions saved. Under Funds there is now a "typical transaction cost" of 0.5% of your investment!!! There is also an example breakdown on page 3. This means that as HL charge 0.45% and no dealing fees, that IWeb have shot to the lead of highest charges because there is the £5 dealing charge each time!

Or am I mistaken? I really hope I am.


Doesn't say when this is in effect from but the latest PDF has 1217 in very small writing at the end and previous PDF was 0817.

The charges in the PDF to which you refer are listed beneath this paragraph:

If you invest in a fund, you will also pay Ongoing Charges and transaction costs to the fund manager each year for looking after the fund and buying and selling assets within the fund. This is taken from the value of the fund and the exact amount is listed in each fund’s documentation.

It is very clear from this that figures given in the examples they quote do not refer to charges levied by IWEB.

dunstonh

DennisTenus wrote: »

Yes but it is confusing/concerning. It's also shown in the breakdown as "transaction costs" not mentioning typical there. Are they just covering themselves here for funds that do charge entry fees etc?

Terminology is changing with MiFIDII (that starts on 3rd Jan). Transaction cost is one of the phrases that is popping up with that. It is effectively a catchall for things like bid/offer spread or dilution levy.

Some investments they offer will have a transaction cost. So, their generic document has to cater for that.

All financial services firms, including IFAs, have a generic charges document. However, it doesn't mean that you will be paying the generic charge.

From 2018, you will be required to be issued with an ex-ante (before buying) and a ex-post (after) personalised cost disclosure. These have to be issued by all parties in the distribution chain (fund house not being part of the distribution unless you buy direct but platform is).

So, you will have a generic example and a personalised pre-sale linked to what you have bought but projected forward and from 2019, you will have another personalised charges disclosure confirming what you have paid over the last year.

It is always the personalised charges that matter. Not hypothetical ones.