Help needed on ISA allocation/platform etc

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
9 replies 1.1K views
^opm^^opm^ Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi All

At the moment i have a largish sum (250,000+) invested in my ISA account with Bestinvest.

Now after being with them for many years i have belated decided to stop paying their higher charges and move to a lower cost platform as well as lower cost funds on that platform.

My money on Bestinvest is split equally between their own multi asset fund and vanguard 80/20 lifestrategy fund.

Now initially my thoughts were to transfer the amount that is invested in vanguard onto their own platform.

The other 50% of my cash i was going to also put on the vanguard platform but as yet had not decided where to invest it.

I dont want active funds again as decided low cost trackers are for me.
Also i invest monthly into my ISA account so trade 12 times a year.

So ideas for cheapest platform and also any websites to help me decide where to re invest my money please.

Replies

  • eskbankereskbanker Forumite
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    There are several options for comparing platform costs:

    http://monevator.com/compare-the-brokers/
    http://www.comparefundplatforms.com/
    http://forums.moneysavingexpert.com/showthread.php?t=5583030

    I think in your shoes I'd be reluctant to bung everything onto Vanguard's platform that'll restrict you exclusively to their products, so would probably shift your VLS holding there and the rest elsewhere with a wider choice of investments, even if you just go with another global multi-asset product from one of the other providers.

    You might find it beneficial to put at least some of your prior year money into a fixed-cost platform such as IWeb, rather than the percentage-based ones, although the latter will often offer free fund trades more suited to current year activity. However, cost is generally a secondary consideration, the more important thing is to ensure you invest in the right thing for your objectives, risk tolerance, etc!
  • jsincjsinc Forumite
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    iWEB have no platform charge for ISAs. Just £25 to open and £5 per trade
    But as eskbanker suggests, wouldn't use it for the regular trades.
  • ^opm^^opm^ Forumite
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    Thanks for replies so far.


    as in regular trades i do once a month then nornally a lump sum towards end of tax year to get rid of some cash so normally 13 trades a year.
  • ^opm^^opm^ Forumite
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    So in looking at this quickly-


    If i transfer a Vanguard fund worth £150000 to Vanguard i would pay a platform charge of 0.15% and an OCF of 0.22% which equals £555 a year.


    If i transfer the same £150000 fund to iweb then i pay an account opening fee of £25 plus an OCF of 0.22% which equals £335 total in first year then £5 less in following years assuming no growth for ease of comparision.


    So with same fund but held via iweb instead of direct with vanguard saves me £220 in first year alone?


    This correct if so seems a no brainer!
  • eskbankereskbanker Forumite
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    ^opm^ wrote: »
    So in looking at this quickly-


    If i transfer a Vanguard fund worth £150000 to Vanguard i would pay a platform charge of 0.15% and an OCF of 0.22% which equals £555 a year.


    If i transfer the same £150000 fund to iweb then i pay an account opening fee of £25 plus an OCF of 0.22% which equals £335 total in first year then £5 less in following years assuming no growth for ease of comparision.


    So with same fund but held via iweb instead of direct with vanguard saves me £220 in first year alone?


    This correct if so seems a no brainer!
    Ignoring the OCF as it's an internal fund cost that's the same wherever you hold it, I can't quite reconcile with your maths, although the end result is still a clear differentiation:

    A £150K fund holding on Vanguard Investor would incur a platform charge of 0.15% = £225 per year.

    The same on IWeb would be the £25 one-off opening fee and one £5 trade in year one (avoidable if transferring in specie rather than via cash), so £30 in year one (£195 saving) and then nothing else, i.e. £225 annual saving thereafter.
  • Tom99Tom99 Forumite
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    Halifax ISA would be £12.50pa plus 13 trades at £2 so total £38.50pa.
    Plus the fund charges.
  • ^opm^^opm^ Forumite
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    Tom99 wrote: »
    Halifax ISA would be £12.50pa plus 13 trades at £2 so total £38.50pa.
    Plus the fund charges.


    Really will have a quick look thanks
  • ^opm^^opm^ Forumite
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    So seems halifax is cheapest to use
  • masonicmasonic Forumite
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    If any of the trades you typically make are sell orders, then you'll pay £12.50 a pop. It is only buy orders that can be discounted to £2.
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