Investing platforms - understanding costs

Marine_life

Having recently returned to the UK I am looking for a platform where I can hold some investments (principally investment funds) and occasionally buy and sell shares and/or funds.

Generally, I am looking at platforms which offer a wide variety of funds but which keep costs low.

I was looking at Hargreaves Landsdown but then realise their annual fee is 0.45% (which I assume means that if I have, say 500k invested then they will charge me 2,250 for the privilege, which seems like a lot.

So my questions are:

1. Is my understanding of the fees correct?
2. Are there better and cheaper platforms which would fulfil my needs?
3. Would I be better off going for a really low-cost platform (which one?) and then doing my research elsewhere (e.g. FE Trust net?).

Thoughts?

dunstonh

I was looking at Hargreaves Landsdown but then realise their annual fee is 0.45% (which I assume means that if I have, say 500k invested then they will charge me 2,250 for the privilege, which seems like a lot.

They are one of the most expensive platforms. However, they are a good quality provider (some of the cheap ones really show it)

2. Are there better and cheaper platforms which would fulfil my needs?

Platforms are not all the same. So, you need to find a platform that meets your investment needs and functionality as well as one that doesnt frustrate you every time you use it.

3. Would I be better off going for a really low-cost platform (which one?) and then doing my research elsewhere (e.g. FE Trust net?).

Very few platforms have decent research tools and some of the in-house options tend to promote certain fund houses (such as those that have made a super clean version available through them - even though it may be available through other platforms)

A_T

Marine_life wrote: »

Having recently returned to the UK I am looking for a platform where I can hold some investments (principally investment funds) and occasionally buy and sell shares and/or funds.

Generally, I am looking at platforms which offer a wide variety of funds but which keep costs low.

I was looking at Hargreaves Landsdown but then realise their annual fee is 0.45% (which I assume means that if I have, say 500k invested then they will charge me 2,250 for the privilege, which seems like a lot.

So my questions are:

1. Is my understanding of the fees correct?
2. Are there better and cheaper platforms which would fulfil my needs?
3. Would I be better off going for a really low-cost platform (which one?) and then doing my research elsewhere (e.g. FE Trust net?).

Thoughts?

With HL it's 0.45% on the first 250K then 0.25% up to a million. But for shares, ITs or ETFs the fees are capped at £45 for ISA and £200 for SIPP

Try http://comparefundplatforms.com/

cloud_dog

Download SnowMan's most excellent spreadsheet and have a play with the numbers (amounts, numbers of trades, types of invesments, etc).

Glen_Clark

Have you seen the Best Buy page of this website: https://www.moneysavingexpert.com/savings/cheap-online-sharedealing

traineepensioner

Marine_life wrote: »

Having recently returned to the UK I am looking for a platform where I can hold some investments (principally investment funds) and occasionally buy and sell shares and/or funds.

Generally, I am looking at platforms which offer a wide variety of funds but which keep costs low.

I was looking at Hargreaves Landsdown but then realise their annual fee is 0.45% (which I assume means that if I have, say 500k invested then they will charge me 2,250 for the privilege, which seems like a lot.

So my questions are:

1. Is my understanding of the fees correct?
2. Are there better and cheaper platforms which would fulfil my needs?
3. Would I be better off going for a really low-cost platform (which one?) and then doing my research elsewhere (e.g. FE Trust net?).

Thoughts?

If you have 500K of funds and only make a few trades a year then it might be worth looking at Interactive Investor ( https://www.ii.co.uk/ ). They seem to get bad press on this forum but I've been with them for a number of years and have no complaints. Their fixed fee approach and the fact that you can offset their fee in free trades makes them ideal for larger sum, buy & hold, investors who may rebalance once a year.

I used to be with Hargreaves Lansdown until they increased their fees to 0.45%, which was a significant increase in costs for my fund portfolio.

As always....DYOR

Tom99

cloud_dog wrote: »

Download SnowMan's most excellent spreadsheet and have a play with the numbers (amounts, numbers of trades, types of invesments, etc).

I would 2nd that.

At £500k you need a fixed price admin fee platform rather than a %age one.

I use Halifax, there is no admin fee for the non ISA acct and a fixed £12.50pa for the ISA acct.

You can invest for a little as a £2 dealing fee, no matter what the amount invested, if you are prepared to stick to the 3 or 4 days a month they have 'regular' investments.

MK62

There's also a website - comparefundplatforms.com

As to HL, it'd only be £1750 rather than £2250, so a bargain....
The website and service is good though.

The previous poster mentioned Halifax, and we have accounts at iWeb, the "sister" company - no annual admin charge for ISA or standard dealing accounts, but a £25 opening charge for the first acct (the other is then free). Cheaper standard dealing charges at £5 vs £12.50, but no monthly £2 trade days.
There's probably little difference overall though to an occasional buy and hold type investor.

It would take you 25 years to transfer the full 500k into ISAs, so at first the charges you pay on the standard sharedealing account might be more important to you vs the charges on the ISA (though if you do both on the same platform, there's probably little difference).
You should also familiarise yourself with UK Capital Gains Tax (CGT) and the ways to limit your exposure to it, plus the annual tax free dividend and interest allowances....

Glen_Clark

MK62 wrote: »

As to HL, it'd only be £1750 rather than £2250, so a bargain....
..

Why is £1750 a bargain when you can hold ETFs free of charge?

MK62

Notice the winkie at the end?

TBC15

Are there any legitimate reasons to fear having all ones investments on the same platform i.e. II .