Which Broker for buying and holding some Investment trusts?

redux

For any of these for investment trusts, it might be worth looking at dividend reinvestment charges, which vary in basis and level.

For instance, HL is 1%, min £1, cap £10 or £12, iWeb 2%, no minimum, while a couple of other places have £1.50 flat fee.

When starting from modest levels, it will only be a couple of quid a year difference, but can eventually build up to a bit more significant.

talexuser

iWeb is 2%, capped at £5.

Glen_Clark

Ash_Pole wrote: »

I didn't know this (I've been with x-o for years). When is settlement day?

I think its normally due on the third day? - but I always pay same day.
x-o sent me an email to ask if I wanted it - they know their money is safe - even when my cash account is empty - because they hold my equities and could sell them to pay for my purchases if I didn't deposit the cash..

StellaN

bowlhead99 wrote: »

If you want to hold significant amounts of cash, use a bank or building society and earn interest. If you are holding insignificant amounts of cash (say a couple of percent of your overall investment portfolio) pending investment, then a fee of 0 15% a year of that 2% is not really going to change your wealth. After an entire year it would add up to a six hundred and sixty seventh of one fiftieth of your portfolio.

If you want to hold cash on a platform ready for immediate investment, you may find yourself paying for that service, albeit at a pretty nominal fee. Some will prefer Vanguard's approach of charging a simple flat percentage on everything rather than using someone like (e.g.) HL and paying triple the flat fee on funds and nothing on cash...

I thought HL did pay a small interest on cash holdings?

RomfordNavy

pafpcg wrote: »

For the Baillie Gifford Investment Trust Share Plan, when buying shares in an investment trust managed by Baillie Gifford, there are no charges other than stamp duty, the TakeOver Panel fee (£1 if purchase >£10k) and the dealing price spread. See here: www.bailliegifford.com/en/uk/individual-investors/how-to-invest/investment-trust-share-planisa/

But note that Baillie Gifford aggregate share sales and purchases at a time and date at their convenience - you won't know in advance what the cost per share will be. By aggregating sales and purchases, the bid-offer spread should be reduced (in theory!)

That link looks like it is about the ISA, it mentions a management charges of £32.50+VAT. There is also the vague paragraph:

*Other charges include the dealing price, stamp duty (0.5% on purchases), and the cost of managing and administering the investment trust portfolios.

RomfordNavy

redux wrote: »

For any of these for investment trusts, it might be worth looking at dividend reinvestment charges, which vary in basis and level.

For instance, HL is 1%, min £1, cap £10 or £12, iWeb 2%, no minimum, while a couple of other places have £1.50 flat fee.

When starting from modest levels, it will only be a couple of quid a year difference, but can eventually build up to a bit more significant.

Are you sure about iWeb? I recently set-up an ISA with them and they made a point of calling me to ensure I understood the charges. These were £25 opening fee and £5 per trade, nothing else was mentioned.

RomfordNavy

RomfordNavy wrote: »

That link looks like it is about the ISA, it mentions a management charges of £32.50+VAT. There is also the vague paragraph:

Also just found this while searching around the Baillie Gifford site:

Costs
— There is a management charge of £32.50 (plus VAT) per year for managing all of the ISAs you
hold with us**
— There is a charge of £22 for each withdrawal
— There are no charges for switches between investment trusts within your ISA
— Other charges include the dealing price spread
†
and Government stamp duty of 0.5% on
purchases (including all switches) and certain transfers
— There is a charge of £32.50 for each transfer to another ISA manager and a further charge of
£32.50 per trust for re-r
egistering the shares in the name of another nominee
— The charges associated with each individual trust are detailed in the relevant Key Information
Documen

atush

pafpcg wrote: »

I'll agree the Baillie Gifford plan is good but it's a dying breed. Purely by coincidence I made a posting yesterday on my experience over 25 years with buying direct from IT managers' share plans: https://forums.moneysavingexpert.com/discussion/5877671/investing-directly-with-fund-companies

For a really long-term hold, consider certificating the holding. That way you get the dividends on the date of distribution paid direct into the bank account of your choice, you get the annual report and a vote at AGMs, and there'll never be any platform charges. Certificating the holding bought at an execution-only broker usually costs £25/holding (SVS charge only £15); amazingly, Baillie Gifford charge nothing for the trusts they manage (Scottish Mortgage, Monks, Scottish American, ...). To sell, just transfer the certificates back to a broker (at no charge).
But keep the certificates safe!

I have bought ITs thru share plans for a couple of decades now. I am a fan.

Most now have ISAs that you can use if you want a wrapper.

londoninvestor

RomfordNavy wrote: »

Are you sure about iWeb? I recently set-up an ISA with them and they made a point of calling me to ensure I understood the charges. These were £25 opening fee and £5 per trade, nothing else was mentioned.

In black and white here: "Dividend reinvestment purchases are charged per reinvestment at a flat rate of 2% based on the value of the dividend (maximum £5)".

So it's actually a little more favourable than the £5 per trade they told you. Some trades (namely small dividend reinvestments) cost less than that.

londoninvestor

StellaN wrote: »

I thought HL did pay a small interest on cash holdings?

They do. I think boston's point is that HL don't charge a platform fee on cash holdings, whereas Vanguard do (here: "We calculate the account fee on the overall value of your Vanguard account, including any cash held.")