HSBC Global Strategy Vs Vanguard LifeStrategy

Alexland

jicms said:

Thanks. Both will be ISAs.

Over the long term a single iWeb ISA would probably be best for a static £40k as it would cost £100 setup and a £5 trade each tax year so £110 total. If you paid 15% pa on £20k with Vanguard that would be £30 pa and if you paid 25% pa on £20k with HSBC that would be £50 pa so £80 pa total. So over 10 years iWeb at £110 would be much cheaper than £800 (or higher with investment growth). You would want accumulation units of both funds to avoid needing to pay iWeb further trade charges to reinvest dividends. It would have been even cheaper a few days ago when the iWeb opening fee was only £25...

[Deleted User]

0.15% pa

Alexland

Deleted_User said:

0.15% pa

Sorry yes missed the dots but the maths still works.

jicms

I've opened an iWeb account and funded it with the HSBC GS Balanced fund. Disappointed to see they don't have an app.  Gutted I had to pay £75 more than two days ago!
So grateful for all the assistance and many thanks for your patience.

Altarf

Alexland said:

jicms said:

Thanks. Both will be ISAs.

Over the long term a single iWeb ISA would probably be best for a static £40k as it would cost £100 setup and a £5 trade each tax year so £110 total. If you paid 15% pa on £20k with Vanguard that would be £30 pa and if you paid 25% pa on £20k with HSBC that would be £50 pa so £80 pa total. So over 10 years iWeb at £110 would be much cheaper than £800 (or higher with investment growth). You would want accumulation units of both funds to avoid needing to pay iWeb further trade charges to reinvest dividends. It would have been even cheaper a few days ago when the iWeb opening fee was only £25...

Halifax Share Dealing is cheaper.
A fixed £12.50 a year for an ISA not a percentage, no matter the value of the investment, and £2 per trade if you use their regular investment facility.

Alexland

Altarf said:

Halifax Share Dealing is cheaper.
A fixed £12.50 a year for an ISA not a percentage, no matter the value of the investment, and £2 per trade if you use their regular investment facility.

Well over 10 years (as per the above example) with 2 trades that would cost £129 compared to iWeb at £110.

HSD is good for disciplined regular contributions but the £12.50 adhoc trade charge (eg £25 to switch funds) really stings which is one of the reasons I left them.