Where do iweb take fees from

cattie

Just wondering if anybody can tell me where iweb take their fees from when you have an isa with them? If I leave cash in the share dealing account will they take it from there rather than selling some of my isa fund units?

I was going to email them to get an answer but it seems an address isn't provided, just webchat, which isn't available on a Sunday & I really don't like using this form of communication anyway, or phone for weekdays, so if I don't get an answer here I'll ring them in the week to find out.

jimjames

What fees are you referring to?

Fund fees come from the fund, dealing fees come from the cost of the deal. iWeb don't charge any other fees for holding an ISA

masonic

As above, there's no holding fees at iWeb and, like other providers, iWeb deduct trading fees from the proceeds of a sell order or the cash used to place a buy order.

cattie

Ah, right thanks. I was expecting there to be the £5 fee to pay each time I bought, switched or put additional money into a fund & also the OCF/management costs too to be taken this way.

I got used to units from the largest fund I held being sold off to pay platform & ifa fees if there wasn't enough cash in my GIA to cover them & wasn't quite sure how the fund managers got what was due.

masonic

cattie wrote: »

Ah, right thanks. I was expecting there to be the £5 fee to pay each time I bought, switched or put additional money into a fund & also the OCF/management costs too to be taken this way.

There is a £5 fee for each trade, as mentioned above this comes out of the money used to buy or money received from selling.

The OCF/management costs of the fund are taken by decreasing the value of the units in the fund, so there is no explicit fee to pay.

I got used to units from the largest fund I held being sold off to pay platform & ifa fees if there wasn't enough cash in my GIA to cover them & wasn't quite sure how the fund managers got what was due.

It's only platform fees that are deducted in this manner, and iWeb has none.

iglad

Slightly off subject but is it better to pay the platform fees with uninvested cash held in the account or should I invest it and let them deduct some units to pay for it?

I seem to think it's best to get that uninvested cash to to be earning but please someone enlighten me.

Brian65

iglad wrote: »

Slightly off subject but is it better to pay the platform fees with uninvested cash held in the account or should I invest it and let them deduct some units to pay for it?

I seem to think it's best to get that uninvested cash to to be earning but please someone enlighten me.

As stated iweb don't have platform fees.
Buying fees will be taken out of the cash before units are bought. Any fees for an ISA have to be taken out of the cash in the ISA. You cannot add cash above the current limit (£20k pa) to pay fees.
If for example you wanted to close the ISA and there was a closure fee, that would have to be taken out of the ISA cash, or ISA shares sold to raise the cash to pay the fees if there was no cash. They cannot just transfer it from your share dealing account unless you tell them to - because you are responsible for ensuring you don't put more than your allowance into the ISA.

Albermarle

Slightly off subject but is it better to pay the platform fees with uninvested cash held in the account or should I invest it and let them deduct some units to pay for it?

If you are talking about platform fees for other platforms than iweb( as they don't have any ) then from other threads most people keep a small cash balance to pay them . One easy way to do this is to have one fund or IT pay the dividend into the cash fund to keep it topped up.
You can keep zero cash and the platform will sell part of one of your investments to release cash , usually with a small fee of £1.50 typically but some charge more.

ffacoffipawb

Brian65 wrote: »

As stated iweb don't have platform fees.
Buying fees will be taken out of the cash before units are bought. Any fees for an ISA have to be taken out of the cash in the ISA. You cannot add cash above the current limit (£20k pa) to pay fees.
If for example you wanted to close the ISA and there was a closure fee, that would have to be taken out of the ISA cash, or ISA shares sold to raise the cash to pay the fees if there was no cash. They cannot just transfer it from your share dealing account unless you tell them to - because you are responsible for ensuring you don't put more than your allowance into the ISA.

Hargreaves Lansdown take their ISA platform fees out of your general investment account and not from the ISA - if you ask them to.

londoninvestor

Brian65 wrote: »

As stated iweb don't have platform fees.
Buying fees will be taken out of the cash before units are bought. Any fees for an ISA have to be taken out of the cash in the ISA. You cannot add cash above the current limit (£20k pa) to pay fees.
If for example you wanted to close the ISA and there was a closure fee, that would have to be taken out of the ISA cash, or ISA shares sold to raise the cash to pay the fees if there was no cash. They cannot just transfer it from your share dealing account unless you tell them to - because you are responsible for ensuring you don't put more than your allowance into the ISA.

iWeb can operate their business how they choose, but there's nothing legally to prevent them from taking closure fees (or platform fees if they had them) from your non-ISA account without them constituting an ISA subscription. Several other platforms do just that.

Brian65

Well if that is the case whats to stop you adding more than the ISA allowance to pay the fund management fees, trading costs, and every other cost?