Fund (my first) S&S ISA now, or wait a few days?

thenewcomer

quick question- the age old question of drip feeding or lump sum investment. i prefer drip feeding, but wouldnt the monthly cost of transaction totalled up to a high cost?

eg. iweb is 5 quids per buy, that will be 60 quids in a year!

lpgm

thenewcomer wrote: »

but wouldnt the monthly cost of transaction totalled up to a high cost?

eg. iweb is 5 quids per buy, that will be 60 quids in a year!

Yes. They said that.

bowlhead99

thenewcomer wrote: »

quick question- the age old question of drip feeding or lump sum investment. i prefer drip feeding, but wouldnt the monthly cost of transaction totalled up to a high cost?

eg. iweb is 5 quids per buy, that will be 60 quids in a year!

Well, that is why Valiant noted that somewhere like IWeb can get expensive as it charges per transaction while others such as Vanguardinvestor or Cavendish don't charge a trading fee but charge you a percentage on assets under administration instead.

For example:

£18k drip fed into an ISA at £1.5k per month, average balance for the year is between £9-10k, charge at Cavendish will be a little over £20 for that first year, but if you kept on contributing at that pace it would be over £60 for the second year as you have more assets under administration. Unless you have big losses of course .

Charge at IWeb would be £60 a year if making 12 purchases, but only £30 if making purchases every other month or £20 if making four quarterly purchases etc . Presumably you have no specific need to deploy the money monthly and bimonthly would still function as a 'drip feed', just a longer timelag before you start earning dividends and investment gains. If you were definitely going to be buying monthly, you could use Halifax Sharedealing which has a transaction-based charging structure while offering discounted £2 transaction fees if you book in advance to trade on a fixed day each month with their regular trading program.

There are lots of options out there.

thenewcomer

thanks both. i find drip feeding an expensive way to invest!

badger09

thenewcomer wrote: »

thanks both. i find drip feeding an expensive way to invest!

That depends on the platform charging structure:cool: